What modifications for parental allowance | EUROtoday

DThe site visitors mild authorities has agreed on some financial savings measures to ease the burden on the finances. A number of new guidelines additionally apply to parental allowance for kids born from April 1, 2024.

Income restrict

Those who’re among the many greater earners might be left empty-handed sooner or later. One of the primary modifications is the lowered earnings restrict: at 200,000 euros it ends and receipt of parental allowance is excluded. This restrict applies to the joint tax earnings of {couples}, however also needs to apply to single dad and mom “according to the current status of parliamentary procedure,” in accordance with the Federal Ministry of Family Affairs web site. Next 12 months, from April 2025, the restrict might be diminished once more, to 175,000 euros of taxable earnings.

Currently – and since September 1, 2021 – there may be nonetheless a restrict of 300,000 euros for {couples} and 250,000 euros for single dad and mom.

Tax Income vs. Gross Income

For the calculation, so-called tax earnings remains to be used, which differs from gross earnings. While, for instance, particular bills, pension bills or particular person allowances should not counted, different earnings, for instance from self-employed or employed work or rental earnings, is included in tax earnings. Freelancers are thought of self-employed, and the identical applies to those that function a photovoltaic system. When it involves the query of tax earnings, it helps to try the final tax evaluation.

The evaluation interval earlier than delivery relies on the query of whether or not the earnings comes from self-employment or employment. However, the calculation doesn’t change from the earlier rules.

Parallel receipt of parental allowance

Furthermore, from April there might be a change relating to the parallel receipt of parental allowance (primary parental allowance). At the identical time, mom and father can solely obtain parental allowance for one month, and solely within the baby's first 12 months of life. Previously, dad and mom have been in a position to freely divide the 14 months of primary parental allowance to which they have been entitled as a pair. There are exceptions, for instance for untimely infants or multiples. There also needs to be an exception for folks of new child kids with disabilities and siblings with disabilities for whom they obtain the sibling bonus. In the long run, these dad and mom ought to proceed to obtain primary parental allowance on the identical time. This regulation is predicted to be applied “in the near future,” in accordance with the Federal Ministry for Family Affairs web site.

Amount of parental allowance

There aren’t any additional modifications, specifically there might be no change to the quantity of parental allowance: the minimal and most quantities of 300 and 1,800 euros respectively stay unchanged.