Study Reveals 38% Decline in Elterngeld's Value Since 2007

Inflation has eroded the purchasing power of Germany's parental allowance, with no adjustments made in 16 years, disproportionately affecting low- and middle-income families.

• An unpublished study by the German Economic Institute (IW) shows Elterngeld has lost 38% of its purchasing power since its introduction in 2007 due to inflation.
• The minimum monthly Elterngeld payment of €300 has not been adjusted for inflation and would need to rise to €413 to match 2007 levels of purchasing power.
• High earners receiving the maximum monthly payment of €1,800 are also affected, as inflation-adjusted rates should now be €2,480 to maintain equivalent value.
• Despite promises by the outgoing coalition government to reform Elterngeld, cuts were made instead, including lowering the income threshold for eligibility from €300,000 to €175,000 by April 2025.
• The SPD has pledged to improve Elterngeld if re-elected, proposing higher payments, longer eligibility periods, and a focus on shared parenting, though funding details remain unclear.

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