The German government is considering cuts to parental allowance (Elterngeld) that would reduce payments, tighten eligibility, and change how couples share leave.
Family Minister Karin Prien (CDU) has presented four concrete proposals. The savings target is €540 million by 2027.
NOTE: No law has been passed. These are proposals. The Bundestag has not yet voted on any reform, and the details of each measure could still change.
What is Elterngeld?
Elterngeld is Germany’s parental allowance. It was introduced in January 2007 to partially replace income when parents stop or reduce work after having a child.
You receive between 65 and 67 percent of your net income from the 12 months before the birth. The minimum payout is €300 per month. The maximum is €1,800 per month.
Parents can claim Elterngeld for up to 14 months combined. Both parents must each take at least two months to unlock the full entitlement.
If only one parent claims Elterngeld, the maximum duration is 12 months.
In 2024, around 1.67 million parents received Elterngeld. The total cost to the German federal government was approximately €7.17 billion. For 2026, the government has budgeted €7.5 billion for Elterngeld.
The minimum and maximum monthly payment amounts have not changed since 2007.
Here are the proposed measures.
#1 Lower the income threshold for Elterngeld eligibility
Currently, couples with a combined taxable household income above €175,000 per year are not eligible for Elterngeld. The threshold was €300,000 until April 2024. It was reduced to €200,000 in April 2024 and to €175,000 in April 2025.
The Family Minister has proposed reducing the threshold further. No new specific figure has been announced.
NOTE: The €175,000 threshold refers to taxable income, not gross income.
Taxable income vs gross income ->
For a couple with no children, a taxable income of €175,000 typically corresponds to a combined gross salary of approximately €207,000. This is around €103,500 gross per person, according to BMBFSFJ. Further tax deductions can push the equivalent gross salary even higher.
#2 Lower payout percentage
Elterngeld currently replaces 65 to 67 percent of a parent’s pre-birth net income. Prien has proposed reducing this percentage.
It is not yet clear whether the reduction would apply to all earners or only to higher earners.
As the minimum (€300) and maximum (€1,800) have remained fixed since 2007, the percentage mainly impacts the middle-income parents. A reduction here would affect the largest group of claimants.
#3 Shorter maximum claim period
Parents can currently claim Elterngeld for a combined maximum of 14 months, provided both take at least two months each. The family minister has proposed shortening this, but not below 12 months.
The legal right to a childcare place (Kitaplatz) only begins when a child turns one year old. A reduction below 12 months would leave parents without income support before a childcare place becomes available.
#4 Mandatory father months
Fathers currently need to take at least 2 months to unlock the full 14-month entitlement. Prien (family minister) has proposed increasing this minimum to four to six months, or requiring fathers to claim the same number of months as the mother.
Families that do not meet the new requirement would receive fewer total months of Elterngeld.
The government has stated this measure is intended to encourage a more equal division of childcare. It may also produce budget savings if some families opt for shorter leave rather than restructure their working arrangements.
In 2025, only 25.9 percent of all Elterngeld claimants were fathers, according to Destatis. This figure has not increased since 2024.
