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New regulation of the Federal Parental Allowance and Parental Leave Act from September 1, 2021

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Dear Colleagues,

On September 1, 2021, the second law to amend the Federal Parental Allowance and Parental Leave Act will come into force.

This results in the following new regulations for parental allowance:

More part-time opportunities and more flexible partnership bonus

For parents who work part-time while receiving parental allowance and on parental leave, the permissible working time increases from 30 to 32 hours per week. The partnership bonus for the parallel part-time of both parents can in future be drawn with 24 - 32 hours per week instead of the previous 25 - 30 hours per week. In addition, it will be simplified and made more flexible in many areas. While parents had to take this for 4 months at a time, it can soon be taken between 2 and 4 months, with flexible exit and short-term extension.

In addition, the receipt of income replacement benefits, such as short-time work benefits or sick pay, will no longer change the amount of the parental benefit in the future. This has previously reduced the amount of the parental benefit.

Parents of premature babies receive additional months of parental allowance

If a child is born at least six weeks before the calculated date, the parents receive an additional month of basic parental allowance. If the child is born eight weeks prematurely, there are two additional months of basic parental allowance, three months for twelve weeks and four for 16 weeks. You can also convert the additional basic parental allowance month into parental allowance plus and thus receiving parental allowance even longer.

Administrative simplifications and clarifications

Parents with low independent additional income will in future be able to have their income better taken into account in the parental allowance. If their self-employed additional income averaged less than 35 euros per month, parents can request that only their non-self-employed income in the 12 calendar months before the birth be taken into account for parental allowance. Previously, the flat-rate income from the calendar year before the birth was applied to them.

Adjustment of the income limits

In future, only parents who collectively earn a maximum of 300,000 euros per year will receive parental allowance. So far, the limit for couples was 500,000 euros. For single parents, the limit is still 250,000 euros.

Further details as well as examples of constellations and calculations can be found on the family portal of the BMFSFJ.


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