Parental allowance to shrink to twelve months: Prien presents draft law

Higher rates, shorter duration

At the same time, benefits are to rise noticeably: the minimum amount is to increase from 300 to 330 euros under the minister's proposal, and the maximum amount from 1,800 to 1,900 euros. This is justified in the draft, among other things, with the goal of raising the income threshold as well as the minimum and maximum amount "spürbar anzuheben". At the same time, higher wage replacement rates and a changed allocation of benefit months are intended to create more partnership.

From the 2025 coalition agreement between the Union and SPD, the political framework emerges: "Wir entwickeln das Elterngeld weiter, indem wir mehr Anreize für mehr Partnerschaftlichkeit, insbesondere mehr Väterbeteiligung in alleiniger Verantwortung setzen." The reform thus ties in with the agreement to more strongly involve fathers in caregiving – the colloquially so-called "Vätermonate", i.e. the months that have so far been predominantly taken by fathers, are to be longer in future.

Austerity pressure as background

The reform is also set against a backdrop of austerity pressures: Prien is to save 500 million euros in her budget next year. In the current year, the federal government is planning around 7.5 billion euros for parental allowance – the reform is intended to maintain the financial framework despite rising minimum and maximum amounts.

Another change concerns maternity protection: with the new regulation, employment bans related to working hours are to be limited to twelve months after childbirth, according to the draft law. The draft thus departs from previous practice, which provided for employment bans over a longer period.

Changes to maternity protection

Regarding the specific income threshold for births from the 1st of a year, the draft contains no conclusive information according to current knowledge; the exact threshold is to be determined in the further process. With the package, the federal government is pursuing the goal of realigning parental allowance as an incentive for a more partnership-based division of paid and care work.

What happens next

The next steps: the draft law must now be deliberated in interministerial coordination with other ministries and finally in the Bundestag and Bundesrat. Until then, details may still change. The family minister had already announced that she wants to shorten the benefit duration and at the same time raise the rates – a balancing act between budget consolidation and family policy impulses.

The family minister belongs to the Union, which together with the SPD forms the government. The present draft is therefore likely to meet with cross-party approval, especially since the reform ties in with agreements in the coalition contract. Critics, on the other hand, could object that the shortening by two months represents a noticeable cut for many families – particularly when the previous division between mothers and fathers is maintained.