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German Draft Raises Elterngeld and Reorders Months as Critics Question Savings

The Family Ministry’s bill moves higher pay to reserved partner months to get more fathers into leave.

Overview

  • The Federal Family Ministry has circulated a draft law that raises the Elterngeld minimum from €300 to €330 and the maximum from €1,800 to €1,900 and redistributes payment rates across months.
  • Under the proposal each parent would get 80% of last net income for their first four months and 50% for later months, with up to 14 months kept if both parents take at least four months.
  • The draft restores unlimited simultaneous receipt of Elterngeld, adds Christmas and one‑off bonuses to the net‑income calculation, and extends the sibling bonus while promising simpler administration.
  • Regional politicians, welfare groups and economists say the design risks hurting family finances because benefits drop to 50% after eight months and could leave lower‑earning caregivers worse off.
  • Analysts also warn the bill’s projected savings are uncertain because higher‑earning fathers taking the newly generous months could raise federal costs; the draft is now in internal government review before interdepartmental talks and parliamentary debate.