Income limit for parental allowance should gradually decrease

As of: November 16, 2023 10:07 p.m

The plan was to cut parental allowance for parents with particularly high incomes starting next year. According to the latest traffic light plans, the income limit will be lowered – but only gradually and not as much as originally planned.

Parental allowance is to be abolished for higher earners from next year – but now with different parameters than previously planned. The income limit should fall gradually and less sharply.

The rapporteur of the SPD parliamentary group in the budget committee, Felix Döring, said this ARD capital studio: “The income limit will not be reduced to 150,000 euros of taxable income.” Instead, from April 1, 2024, the limit for couples is to be reduced by a third, from the previous 300,000 to 200,000 euros. A year later it will be further reduced to 175,000 euros. “By delaying the reduction, we give families more time to adjust to the changes,” said Döring.

Also change in partner months

In addition, couples should still be able to take up to 14 months of parental leave together – but only a maximum of one month at a time. “In the future, at least one of the partner months must be taken alone,” says Döring. This must also be within the child’s first year of life. The change should not apply to multiple births.

According to Döring, the aim is to counteract an “increasing parallel relationship” that stands in the way of more partnership.

Changes to parental allowance were only decided in the summer

Federal Family Minister Lisa Paus only decided in the summer of this year to abolish parental allowance for couples with particularly high incomes. According to the Green politician’s proposal, it should only be paid out to parents who, alone or together, have no more than 150,000 euros in taxable annual income. The current limit is 250,000 euros for single parents and 300,000 for couples.

In October, Paus defended her parental allowance plans against a proposed change from her coalition partner, the FDP. The Liberal parliamentary group wanted to reduce the parental allowance entitlement for couples to twelve months, for all income groups.

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