Income limit lowered: The traffic light is now canceling parental allowance for these parents

From January 2024, parental allowance is to be completely eliminated for couples with a taxable income of more than 200,000 euros. This is reported by the “ Bild “. From April 2025, the income limit is set to fall to 175,000 euros. Parental allowance is currently available to all families who have a taxable income of up to 300,000 euros per year.

Traffic light partially cuts parental allowance – Family Minister Paus wanted to go even further

Family Minister Lisa Paus originally wanted to go further and cancel parental allowance for all couples with a taxable income of more than 150,000 euros. According to the report, around 60,000 families would have been affected. Finance Minister Christian Lindner had previously ordered her to save 218 million euros.

In addition, parents should only be able to take parental leave together for one month. So far it’s been three months. According to “Bild”, this is intended to prevent higher earners from traveling together for months at a time during this time. This would not correspond to the intended use of parental allowance, which is intended to promote the compatibility of family and work.

The cuts still need to be officially approved by the Budget Committee. The scheduled cleanup session will last until early Friday morning.

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