Parental Allowance Reform: Prien Plans Benefit Period of Twelve Instead of 14 Months

Background: The Coalition Agreement

The background to the reform is the coalition agreement between the CDU/CSU and SPD for 2025. It states: "Wir entwickeln das Elterngeld weiter, indem wir mehr Anreize für mehr Partnerschaftlichkeit, insbesondere mehr Väterbeteiligung in alleiniger Verantwortung setzen. Das erreichen wir beispielsweise durch erhöhte Lohnersatzraten und veränderte Anzahl und Aufteilung der Bezugsmonate des Elterngeldes."

Family Minister Prien had already announced weeks ago that she did not intend to touch the income threshold for parental allowance and would instead examine raising the minimum and maximum amounts. This income threshold has stood at 175,000 euros since April 1, 2025. A spokesperson for the Family Ministry confirmed the corresponding information from Politico to the German Press Agency.

Financial Framework and Austerity Requirements

In the current year, the federal government plans to spend around 7.5 billion euros on parental allowance. Next year, Prien is under pressure to cut costs and must save 500 million euros within her ministry. The reform proposals must therefore also be assessed against the backdrop of the budgetary situation.

The draft also contains an amendment to the Maternity Protection Act. In future, working-time employment bans are to be limited to twelve months after the birth. The draft states verbatim: "Mit der Neuregelung werden arbeitszeitliche Beschäftigungsverbote auf zwölf Monate nach der Entbindung eingeschränkt." Connected with this is a shortening of the protection periods for working mothers.

Changes to Maternity Protection

Mothers and fathers can apply for parental allowance when they take a career break after the birth of a child. Until now, parents had shared the maximum benefit period on a partnership basis, with one parent having to take at least two months in order to receive the full duration. With the reform, this minimum participation would rise to three months per parent.

According to the ministry spokesperson, the draft law is still undergoing intra-ministerial coordination. No information was initially available about the timing of cabinet deliberations or the further parliamentary course. Changes to the draft also remain possible during the interministerial coordination process.

Pending Coordination and Outlook

In recent weeks, parents' associations and social organizations have repeatedly called for a fundamental reform of parental allowance, pointing both to the importance of an adequate benefit period and to higher replacement rates. The planned shortening to twelve months has drawn criticism in parts of family policy, as it reduces the period of financial security after birth.

At the same time, the coalition is pursuing the goal of the reform to involve fathers more strongly in family work. The distribution of benefit months is to become more partnership-based, which could break up traditional role patterns. How effective this incentive actually is will only become apparent through later evaluations.

What is certain is that the reform can only be introduced into the Bundestag after the completion of the intra-ministerial coordination and a cabinet deliberation. Until then, changes may still be made to the minimum and maximum amounts as well as to the new distribution of benefit months.

Overall, the draft navigates the tension between budgetary pressure to save, the desire for more fathers in family work, and the need for financial security for young families. Which of these lines will prevail will be shown by the parliamentary deliberations.