Parental allowance for high earners will be gradually eliminated

FFrom next year onwards, high earners should… Parental allowance will be eliminated – but with different key parameters than previously planned. The income limit should not fall suddenly, but gradually, as the German Press Agency learned from the budget committee meeting on Friday night. Until the end of March, the limit should remain at 300,000 euros for taxable annual income, as before, and then fall to 200,000 euros by the end of the year. From April 2025, an income limit of 175,000 euros will apply.

“Incentives for more partnership”

Family Minister Lisa Paus (Greens) had decided to cancel parental allowance for couples with particularly high incomes. According to their 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.

“We are reversing cuts in parental allowance and setting stronger incentives for more partnership,” explained SPD householder Felix Döring. Families would have more time to adjust to the changes.

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 the same time. At least one of the partner months must be taken alone. This must also be within the child’s first year of life. The change should not apply to multiple births.

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