Advice on Parental Allowance Plus
Calculator on the subject
Parental benefits calculator
Our future belongs to the children. Balancing family and job is one of the requirements of many young couples today. Fathers also want to get actively involved in raising their children. Flexibility is important to parents, even when it comes to financial security. With good planning of the child-rearing phase, state support in the form of parental allowance and ElterngeldPlus can be used optimally.
The topics in detail
Financial security for families
With the aim of providing financial support to young parents in the first few months of their child’s life, the “Law on parental allowance and parental leave” (also known as the Federal Parental Benefit and Parental Leave Act) came into force in 2007. This should give both mothers and fathers the opportunity to take a break from work to organize family life with their offspring. With love and security, time and attention, a sheltered start in life is possible. The active participation of fathers in the upbringing of children is also expressly desired – parental leave of both partners or fathers’ months are therefore welcome. To further promote this, the reform of the Parental Benefits Act 2015 Parental allowance plus introduced. Parental allowance and ElterngeldPlus can be combined as desired – here it is worthwhile to calculate different variants!
Who can receive parental allowance??
Parents want to be able to look after their child at home in the first few months of life
- Self-employed and freelancers
- Apprentices and students
- Civil servants
apply for parental allowance. Parents who adopt a child and grandparents or siblings of the parents can also receive parental allowance. However, the maximum limit for annual earnings must be observed: single parents may not earn more than 250,000 euros, and parents may not earn more than 500,000 euros.
First variant: the basic parental allowance
In the basic variant of parental allowance, state support replaces 65 to 100 percent of the loss of regular income. Accordingly, mothers and fathers who work part-time during parental leave receive parental allowance on the loss of income caused by the reduction in hours. The amount of the parental allowance is based on the percentage of the last salary or the corresponding loss of earnings for part-time employment.
Basic parental allowance, i.e. the classic parental allowance, is paid for at least two and at most for 14 months. However, each parent is only entitled to 12 months’ leave. The young mother’s maternity leave is deducted from the parental leave. So if the couple wants to take advantage of the entire parental leave, the partners have to split the time.
Basic Parental Allowance
How high the entitlement to basic parental allowance is can be determined as follows:
|Average monthly net income over the past 12 months||Entitlement to parental allowance of|
|No merit||Minimum amount 300 euros|
|Less than 1,000 euros||100 percent, is gradually lowered|
|1,000 – 1,240 euros||67 percent, will be gradually lowered|
|1,241 – 2,770 euros (maximum amount)||65 percent|
There are supplements for multiple births or if a sibling already lives in the family.
With an average net earnings of 1,600 euros per month, the mother is entitled to 65 percent of it, i.e. around 1,040 euros parental benefit. Of course, this also applies to the father.
Second variant: Parental Allowance Plus
It is important for many young mothers and fathers to keep in touch with their job and their employer. This applies particularly to the self-employed and freelancers who want to continue to look after customers. ElterngeldPlus accommodates this wish and enables a more flexible combination of family life and part-time work. ElterngeldPlus makes it possible to extend the parental benefit reference period and thus to be there for the child as well as to take responsibility at work beyond the child’s 14th month of life.
- The maximum subscription time can be extended up to 28 months.
- One parental allowance month becomes two parental allowance plus months.
- Part-time work and parental allowance can be combined better than before.
There is also a partnership bonus if the parents share the care and work in parallel for 25 to 30 hours per week over 4 months. This partnership bonus includes a further 4 months of ElterngeldPlus.
In months with maternity benefits, only basic parental benefit, but no parental benefit plus, can be drawn.
Amount of the parental allowance plus
Like the previous parental allowance, ElterngeldPlus replaces 65 to 100 percent of the lost income. However, no more than half of the parental allowance that parents would be entitled to without part-time income is paid. Parental allowance plus is paid for twice the period, but is a maximum of half of the parental allowance without part-time income.
|ElterngeldPlus calculation example|
|Average monthly net before birth||1,600 euros|
|=> Entitlement to parental allowance, which would be due without part-time after birth (65%)||1,040 euros|
|Earned part time after giving birth for 15 hours a week||600 euros|
|=> Right to half of the parental allowance that would not be due to part-time work (1,040 / 2)||520 euros|
|Total income during the parental allowance plus period (600 + 520)||1,120 euros|
Parental allowance and ElterngeldPlus – determine the best combination
Parental allowance and ElterngeldPlus can be combined with one another in almost any way. Parental allowance and ElterngeldPlus are requested in writing from the responsible parental allowance office.
A possible combination of our example above would be:
|Month of life of the child||Status of the mother||Merit of the mother||Status of the father||Merit of the father|
|1||Maternity leave counts as parental allowance||1,040 euros||Based parental allowance||1,040 euros|
|2||Maternity leave counts as parental allowance||1,040 euros||Regular income||1,600 euros|
|3-6||Based parental allowance||1,040 euros||Regular income||1,600 euros|
|6-12||ElterngeldPlus with 15 hours per week and 600.00 earnings, count like 3 months of basic parental allowance||1,120 euros||ElterngeldPlus with 30 hours per week and 1,200.00 earnings, count like 3 months of basic parental allowance||1,720 euros|
|12-18||ElterngeldPlus with 30 hours per week and 1,200.00 earnings, count like 3 months of basic parental allowance||1,720 euros||ElterngeldPlus with 30 hours per week and 1,200.00 earnings, count like 3 months of basic parental allowance||1,720 euros|
|19-23||Partnership bonus: ElterngeldPlus with 30 hours per week and 1,200 euros in earnings||1,720 euros||Partnership bonus: ElterngeldPlus with 30 hours per week and 1,200 euros in earnings||1,720 euros|
Basic parental allowance and parental allowance plus must always be applied for in advance. So plan ahead. Remember that your employer must also agree. Let him know in good time.
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