12/18/2023
Parental allowance in Germany for 2024:
New income limits: Starting in 2024, the income limits for parental allowance will be lowered. This means that the taxable income above which there is no entitlement to parental allowance will be lower for couples and single parents. This change is part of a reform to meet the Federal Minister of Finance's targets and is currently undergoing parliamentary proceedings.
A stricter income limit will apply to births or adoptions from April 1, 2024. Couples may then have earned a maximum of 200,000 euros in the year before the birth ("last completed assessment period"), based on taxable income. For single people there is a limit of 150,000 euros. For children born as of April 1, 2025, even stricter values apply to couples. Then the entitlement no longer applies to taxable income above 175,000 euros.
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