Elterngeld: Germany's parental allowance explained
Elterngeld is Germany's parental allowance, a financial benefit that replaces a portion of your income so that you can spend time with your newborn without the immediate pressure of returning to work. Understanding how it works before your baby arrives means you can apply promptly, plan your leave alongside your partner, and avoid gaps in payment. This article draws on information from the Bundesministerium für Familie, Senioren, Frauen und Jugend (BMFSFJ) to explain who qualifies, how much you can receive, and what to do to make your claim.
What is Elterngeld and who qualifies?
Elterngeld was introduced in Germany in 2007 to give both mothers and fathers a realistic way to step back from paid work during the early months of a child's life. The benefit is available to parents who live in Germany and care for their child themselves. There is no requirement to have been employed before the birth. Students, the self-employed, freelancers, and parents who were not working can all receive Elterngeld, though the amount varies depending on prior income.
Both parents can receive Elterngeld at the same time or take their months consecutively. Eligibility is not linked to your nationality as long as you are ordinarily resident in Germany. Parents who are employed full-time during the benefit period are not eligible, but parents who reduce their working hours to a part-time arrangement of up to 32 hours per week can continue to receive a reduced amount of Elterngeld alongside their part-time earnings.
The income used to calculate your benefit is your average net income in the 12 calendar months before the month of your baby's birth. For employees, this is drawn from your payslips. For the self-employed, it is based on your profit and loss record. Months in which you received maternity pay (Mutterschaftsgeld) or were on sick leave may be excluded from the calculation and replaced by earlier months, which can work in your favour if those months had lower earnings.
How much Elterngeld will you receive?
Basiselterngeld, the standard form of the benefit, replaces 65 to 67 percent of your average net income before the birth. The replacement rate is slightly higher for parents on lower incomes, reaching up to 100 percent for those with very low earnings. The minimum payment is 300 euros per month, which also applies to parents who had no income before the birth. The maximum payment is 1,800 euros per month, regardless of how high your prior income was.
Parents who had no taxable income before the birth still receive the minimum of 300 euros per month for the duration of their chosen Elterngeld period. Multiple birth bonuses apply to twins and higher-order births: an additional 300 euros per month is added for each extra child. If you already have children under the age of three (or under six for multiple births or children with disabilities), a sibling bonus of ten percent may increase your payment, with a minimum additional amount set by the scheme rules.
It is important to understand that Elterngeld itself is tax-free, but it is subject to Progressionsvorbehalt. This means the allowance is added to your taxable income when calculating the tax rate applied to your other income in that year. If you have other income in the same tax year, the effective tax rate on that income may rise as a result. It is worth checking the impact with a tax adviser or your Steuerberater if you have additional sources of income during the benefit period.
Basiselterngeld and ElterngeldPlus: understanding your options
The Elterngeld system offers two main variants that can be combined to suit your family's plans. Basiselterngeld pays the full replacement amount for between 2 and 12 months per parent. Together, both parents can draw on a combined total of up to 14 months of Basiselterngeld, provided that each parent takes at least 2 months. If only one parent takes Elterngeld, the maximum is 12 months. The additional 2 months are called Partnermonate and are only unlocked when both parents participate.
ElterngeldPlus was introduced to make Elterngeld more flexible for parents who return to part-time work. It pays half the monthly Basiselterngeld amount but for twice as many months. One month of Basiselterngeld is converted into two months of ElterngeldPlus, so the total payout in cash terms stays the same. This option is particularly useful if you want to return to part-time work earlier but still benefit from income support over a longer period.
A further option within ElterngeldPlus is the Partnerschaftsbonus. This bonus applies when both parents each work between 24 and 32 hours per week at the same time for at least four consecutive months. Each parent receives four additional months of ElterngeldPlus as a reward for sharing work and care in this way. The Partnerschaftsbonus can be a practical route for couples who want to divide childcare and employment roughly equally in the first two years.
You can mix and match Basiselterngeld and ElterngeldPlus months within the limits of the scheme. Planning this in advance, ideally with your partner and if necessary with the help of the Elterngeldstelle, will help you get the most from the system and align your leave periods with your employer commitments.
How to apply for Elterngeld
You apply for Elterngeld through the Elterngeldstelle, which is the responsible authority in your federal state (Bundesland). In most states this sits within or alongside the Jugendamt or a regional family affairs office. Many states now offer online applications through the ELFE portal (Elterngeld digital), which allows you to submit your application electronically with supporting documents. Check whether your state participates in the online system, as not all states had fully migrated at the time of writing.
You can apply before your baby is born, though some documents, such as the birth certificate, will need to be submitted afterwards. Submitting the form early and following up with the birth certificate promptly after delivery is a practical approach. The key deadline to keep in mind is that Elterngeld payments are retroactive only up to 3 months before the application date. If you apply late and your baby is already older, you will lose months of payment that cannot be recovered. Apply as soon as possible after the birth to avoid this.
Documents typically required include your identity document, your child's birth certificate, proof of your net income in the 12 months before the birth (payslips or a tax assessment for the self-employed), and confirmation of any Mutterschaftsgeld received. Your employer may also need to confirm details of your working hours if you plan to work part-time during the Elterngeld period. The Elterngeldstelle will write to you to confirm the amount you will receive and for how many months.
If your circumstances change during the benefit period, for example if you take on more hours at work than originally planned, you are obliged to notify the Elterngeldstelle promptly. Overpayments must be repaid, so keeping the office informed protects you from unexpected demands later.
Elterngeld and Elternzeit: two separate things
Elterngeld is often discussed alongside Elternzeit, but the two are distinct. Elternzeit is the right to take parental leave from your employer, protecting your employment contract for up to 36 months per child per parent. Elterngeld is the financial payment you receive from the state during a portion of that time. Claiming Elterngeld does not automatically create an Elternzeit arrangement with your employer: you need to notify your employer separately that you are taking Elternzeit, giving at least 7 weeks notice before the leave is due to start.
You can receive Elterngeld for up to 14 months (or longer with ElterngeldPlus), but Elternzeit can last much longer. The months after Elterngeld runs out but while you are still on Elternzeit are unpaid from the state, though some employers offer contractual top-ups. Understanding the difference helps you have clear conversations with your employer about your plans and ensures you do not confuse the financial benefit with the legal employment protection.
Frequently asked questions
How much is Elterngeld in Germany?
Elterngeld replaces 65 to 67% of your net income before the birth. The minimum payment is 300 euros per month and the maximum is 1,800 euros per month. Parents on lower incomes receive a higher replacement rate.
How long can I receive Elterngeld?
Each parent can receive Basiselterngeld for 2 to 12 months. Together, both parents can share up to 14 months of Elterngeld if each takes at least 2 months. ElterngeldPlus pays half the amount for twice as long, suitable for parents returning to part-time work.
Is Elterngeld available for the self-employed?
Yes. Elterngeld is available to all parents including the self-employed, freelancers, students and those who were not working before the birth. The amount is based on income in the 12 months before the birth.
How do I apply for Elterngeld?
You apply to the Elterngeldstelle at your local Jugendamt or regional authority. Applications can be submitted before or after the birth. Payments are retroactive only up to 3 months before the application date, so apply promptly.
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