Germany plans to cut parental allowance duration from 14 to 12 months, raise minimum and maximum payments
Family Minister Karin Prien's draft bill would reduce the maximum parental allowance period by two months while requiring each parent to take at least three months off, as Berlin seeks budget savings.
The draft proposal
On 6 July, Politico reported on a draft bill from Family Minister Karin Prien (CDU) that would overhaul Germany's Elterngeld system. The maximum payment period would drop from 14 to 12 months. To receive the full 12 months, each parent would have to take at least three months of leave, up from the current two. The remaining six months could be split flexibly. Single parents would still be eligible for up to 12 months of full payments. The monthly minimum would rise from €300 to €330, and the maximum from €1,800 to €1,900, while the basic rule of 65% of net income remains unchanged.
Three months are reserved for each parent in future. Six further months can be divided flexibly between the parents.
Budget pressures
The reform is driven by a requirement for Prien's ministry to save €500 million in the coming year. State spending on Elterngeld has been falling as birth rates decline: from €7.6 billion in 2022 to just under €7.1 billion in 2025, according to the Bremen Institute for Labour Market Research and Youth Employment Assistance. The federal budget for 2026 plans around €7.5 billion for the benefit. In 2025, 1.61 million people received Elterngeld (1.19 million women and 417,000 men), a 13.9% drop from 2021. The share of fathers among recipients was 25.9%.
Coalition agreement and earlier plans
The 2025 coalition agreement between the CDU/CSU and SPD already pledged to develop Elterngeld "by setting more incentives for partnership, especially more father involvement in sole responsibility." The agreement mentioned adjusting the number and distribution of payment months. Spiegel Online notes that in June, coalition sources had indicated Prien was considering four reserved months per partner plus four flexible months, but the leaked draft now settles on three plus three plus six.
We will develop parental allowance further by creating more incentives for more partnership, in particular more father involvement with sole responsibility.
Maternity protection changes
The draft also amends the Maternity Protection Act. Employment bans related to working hours would be limited to twelve months after childbirth. Currently, several rules under the act apply as long as mothers are breastfeeding, including bans on night work and work on Sundays and public holidays.
With the new regulation, employment prohibitions on working time will be restricted to twelve months after delivery.
Next steps
A spokeswoman for the Family Ministry confirmed the draft's existence to dpa but said it is still undergoing interdepartmental coordination. No date for a cabinet decision has been set.
- Elterngeld introduced: up to 14 months, minimum €300, maximum €1,800, 65% of net income.
- Income threshold set at €175,000 for births from this date.
- Coalition agreement pledges to reform Elterngeld with more incentives for partnership and father involvement.
- Draft bill leaked: 12 months, 3 reserved months per parent, higher minimum and maximum payments.
