Background information

In Germany, parental allowance (Elterngeld) provides support for parents who work part-time or not at all after the birth of a child. The allowance is available to every mother and father. Three forms exist; a basic scheme (first 14 months after birth) Elterngeld Plus and the Partnerbonus. The two latter forms are available in case of part time work and in case of both parents involving in care work for at least some few months.

For many parents, the COVID-19 pandemic has created uncertainties about parental allowance. Parents in systemically relevant professions are needed at their workplace and have to work more hours than usual, while others are free or in short-time work and at risk to run into economic difficulties while receiving parental allowance. For this reason, the government made changes to the existing law.

Content of measure

The time frame of the parental allowance scheme was amended. Parents who cannot stay at home or work part time because they work in systemically relevant sectors and professions may postpone their parental allowance (basic scheme) months until the child's 14th month of life, until June 2021 at the latest. The months taken later do not reduce the amount of the parental allowance for another child.

The actual working time of parents during the COVID-19 pandemic has no impact on their eligibility for the partnership bonus; working part-time is no longer a requirement.

Income replacement benefits that parents receive as a result of the COVID-19 pandemic - such as short-time work allowances or compensation for income losses - do not reduce the amount of parental allowances.

In order to compensate for disadvantages in the later parental allowance calculation, expectant parents can also exclude these months from the parental allowance calculation.

Use of measure

No data.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Does not apply to businesses	Parents

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Unknown	Unknown

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Unknown

Involvement

Both social partners were consulted on the issue.

Views and reactions

The German Trade Union Confederation (DGB) welcomed the decision, saying that: 'The Federal Minister of Family Affairs' project is good and correct. Expecting parents must be able to rely on the fact that they do not suffer from parental benefits due to current loss of earnings. So it is only logical not to include months with lower income during short-time work or unemployment. However, this regulation should not only apply during the Corona period, but generally, as stipulated, for example, by the Maternity Protection Act. In the Maternity Protection Act, months of short-time work are always excluded from the calculation of benefits.'

Sources

• 07 May 2020: DGB welcomes adjustments to parental allowances (DGB begrüßt angepasste Elterngeld-Regeln) (www.dgb.de)
• 21 December 2020: COVID-19: Changes to parental allowance extended (www.bmfsfj.de)