The birth of a child represents a turning point in life for many parents. While they enjoy the time with their newborn, parental allowance provides financial security. At first glance, this can feel overwhelming and presents many parents with challenges.
In our guide, you will therefore learn everything you need to know about calculating parental allowance. We summarize who is entitled to it, which variants exist, and how you can apply for it easily. With a little patience, you will surely succeed in finding the best possible solution for you.
- What is parental allowance and who is even entitled to it? Parental allowance is a state benefit designed to ensure the financial security of new parents.
- Calculating parental allowance 2025: 3 variants at a glance: You have the choice between basic parental allowance, ElterngeldPlus, and the partnership bonus.
- Self-employed or no income: Special cases & exceptions for child benefit: Parental allowance can also be received by self-employed individuals, students, or people without income.
What is parental allowance and who is even entitled to it?
Parental allowance is one of the most important state benefits for young families in Germany. It can be understood as a type of wage replacement benefit. It covers part of your lost income if you interrupt your professional activity or reduce your working hours after the birth of your child to be there for your baby.
The primary goal is to secure the family's economic existence during this crucial first phase and to give parents the freedom to concentrate on caring for their newborn without financial fears.
Anyone wishing to receive parental allowance must meet several requirements.
If you can answer "Yes" to all four criteria, then you are entitled to parental allowance:
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You have your place of residence or habitual abode in Germany.
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You live with your child in a shared household.
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You care for and raise your child yourself after birth.
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You do not work at all or work no more than 32 hours per week while receiving parental allowance.
If these requirements apply to you, then you should look closely at the calculation of parental allowance. All information on this awaits you in the following chapters.
- Title: Important terms regarding the calculation of parental allowance
- Description: Parents who wish to apply for parental allowance before the birth of their child repeatedly come across the term "assessment period". This refers to the time window whose income forms the basis for calculating the parental allowance. This is usually the last 12 months before the start of maternity leave. Regarding the "months of life" of your child, there is a pitfall: parental allowance is not calculated in calendar months, but in the months of your baby's life. If your baby was born on the 15th of a month, then the parental allowance also begins and ends on the 15th of a month.
Calculating parental allowance 2025: 3 variants at a glance
There are three different variants of parental allowance. These have been revised several times in recent years, which represents an additional difficulty for expectant parents.
To give you a good overview, we briefly summarize the 3 variants for you. In the next chapters, we will then present the three variants in detail:
- Basic parental allowance: With basic parental allowance, you receive 65% of your average net income during the assessment period. It can be paid for the first 12 months of your child's life.
- ElterngeldPlus: If you want to remain particularly flexible, ElterngeldPlus is a good choice. You can work part-time, and your earnings are offset much more fairly.
- Partnership bonus: The partnership bonus model is suitable for parents who both work part-time. It can be applied for after ElterngeldPlus but is subject to strict requirements.
Basic parental allowance
Basic parental allowance (Basiselterngeld) is generally 65% of your net income during the assessment period. It amounts to a minimum of €300 and a maximum of €1,800 per month. Mothers who had no income before the birth also receive the minimum rate of €300.
The receipt of basic parental allowance is limited to 14 months, whereby each parent must apply for at least two months. The remaining months can be flexibly divided between mothers and fathers. Single parents can claim the 14 months of parental allowance entirely on their own.
It is important to note that basic parental allowance is capped at 14 months. Once these have been used up, you can apply for ElterngeldPlus or a partnership bonus. Mothers can receive maternity benefit and parental allowance at the same time.
To help you better estimate the amount of parental allowance for this option, we have created a small overview for you:
| No net income before birth: | €300 (minimum amount) |
| €1,000 net income before birth: | €650 |
| €2,000 net income before birth: | €1,300 |
| €3,000 net income before birth: | €1,800 (maximum amount) |
- Title: How part-time work affects the amount of basic parental allowance
- Description: Many parents wish to continue working during parental leave. This is possible with basic parental allowance. The basis for this is the difference in your net income before and after the birth. For example, if the difference is €1,100, you will receive parental allowance amounting to 65% of this sum. Your basic parental allowance would therefore amount to €715 and be added to your salary.
ElterngeldPlus
ElterngeldPlus is suitable for parents who work part-time while receiving benefits or who wish to receive parental allowance for a longer period. One month of basic parental allowance corresponds to two months of ElterngeldPlus, so the benefit period is twice as long. It is therefore a maximum of 24 months and ElterngeldPlus is capped at a maximum of €900 per month.
The calculation of ElterngeldPlus is relatively simple: it is half of the basic parental allowance (65% of the net income in the assessment period). Which variant is best for parents depends largely on whether or not they continue to work after the birth.
This is also easiest to explain using a table. Let's assume you do not want to work after the birth. Then your ElterngeldPlus is half as high as the basic parental allowance:
| Net income before birth: | €2,000 |
| Basic parental allowance: | €1,300 (= 65% of net income) |
| ElterngeldPlus: | €650 + double the benefit period |
However, it looks different if you want to work part-time after the birth. Then you would receive the following payments:
| Net income before birth: | €2,000 |
| Net income after birth in part-time: | €1,200 |
| Difference in income: | €800 |
| Basic parental allowance: | €520 (65% of the income difference) |
| ElterngeldPlus: | €520 (twice as long a period) |
The decisive advantage of ElterngeldPlus is therefore that you can receive it for twice as long.
Partnership bonus
The partnership bonus can be applied for following ElterngeldPlus. This bonus is between two and four months and is intended to improve the compatibility of family and career.
It can be paid out if both parents work part-time. The weekly working hours must be between 24 and 32 hours per week.
It is important to note that the partnership bonus is capped and is calculated based on the theoretical basic parental allowance without income. We can also best illustrate this for you using an example:
| Net income before birth: | 2,000 € |
| Net income after birth (part-time): | 500 € |
| Difference: | 1,500 € |
| Basic parental allowance: | 975 € (= 65% of the income difference) |
| Theoretical basic parental allowance without income: | 1,300 € (65% of net income) |
| Partnership bonus cap amount: | 650 € (half of the theoretical basic parental allowance) |
| Partnership bonus: | 650 € |
| Total (salary + partnership bonus) | 1,150 € (500 € + 650 €) |
As you can see, the partnership bonus is actually quite complicated. However, for parents working part-time, it can be a great supplement to their salary.
- Title: Additional bonus for parents of premature babies
- Description: If your baby is born prematurely, you are entitled to state support during this difficult time. The receipt of parental allowance can be extended due to a premature birth. The decisive factor is how many weeks early your baby was born:
- 6 weeks early: 1 month
- 8 weeks early: 2 months
- 12 weeks early: 3 months
- 15 weeks early: 4 months
Self-employed or no income: Special cases & exceptions for child benefits
You now know the three variants of parental allowance. There are also some special cases and exceptions. These are intended to ensure that families with unusual family models and individual needs are also financially secure after the birth of a child.
We have summarized the most important special cases for you:
- Self-employed: Self-employed individuals are also entitled to parental allowance. It amounts to 65% of net income before birth. This is determined based on the tax assessment or an income-surplus statement. ElterngeldPlus and the partnership bonus can also be applied for by the self-employed.
- Students: If you are a student, you can also receive parental allowance. You do not have to interrupt your studies for this (unlike gainful employment). Here, too, we advise you to contact the parental allowance office directly.
- Low-income earners: If you are a low-income earner with less than 1,240 € net per month, you will receive a higher percentage than 65% for your basic parental allowance. The replacement rate can be up to 100%.
- Parents without previous income: If you have not received any income so far, you will receive the minimum amount of parental allowance. This is 300 € basic parental allowance or 150 € ElterngeldPlus. Substitute benefits, such as unemployment benefit, sickness benefit, or BaföG, are not credited, so the regulations for people without previous income apply to you.
- Parents with other children: If you are expecting a baby and already have a child under the age of three, you will receive a sibling bonus on top. This regulation also applies if you have two children under the age of 6. The parental allowance received then increases by 10%.
As you can see, as many groups of people as possible should benefit from parental allowance and be secure after the birth of their child. If you have questions about your individual situation, the parental allowance office can advise you.
- Title: Parental allowance increases for multiple births
- Description: In the case of a twin birth, you get 300 € per month in addition to the basic parental allowance or 150 € more for ElterngeldPlus. For triplets, you receive double the supplement, for quadruplets triple, and so on. The same regulation applies to the minimum amount.
Receiving parental allowance: When and where do I apply?
In addition to calculating parental allowance, applying for it is also a very important point. Because although your income before birth is decisive for the parental allowance, you can only apply for it after your baby is born.
The pitfall here is that parental allowance is paid retroactively for a maximum of three months of life. If you only apply for parental allowance in the fourth month of life, you are giving away one month. So make sure to submit your application before the end of the third month of life.
Conveniently, you can now apply online for parental allowance in most federal states. You will be guided through a digital application process in which all important criteria are requested. It is important that you apply for parental allowance at the pension office or the district administration of your place of residence.
Frequently asked questions about calculating parental allowance
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How is maternity benefit offset against parental allowance? The maternity benefit you receive from your health insurance company after birth is fully offset against the parental allowance. Important: The months of life in which you receive maternity benefit (usually the first two) are mandatory Basic Parental Allowance months. You cannot convert them into ElterngeldPlus.
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Do I have to pay tax on parental allowance? The parental allowance itself is tax-free. However, it is subject to the so-called progression clause. This means it is added to your remaining taxable income to determine your personal tax rate. This (higher) tax rate is then only applied to your regular income. This can lead to a tax back payment. It is advisable to set aside some money for this every month.
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What happens in the event of unemployment, short-time work, or illness before birth? These cases are complex. Basically, months in which you received wage replacement benefits such as unemployment benefit or sickness benefit are skipped when calculating the assessment period and replaced by months further back with earned income.
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Conclusion: Calculating & applying for parental allowance is not that difficult
Parental allowance may seem complicated at first glance. Expectant parents should first look at the three variants and their special features. This gives a good overview and helps in choosing the right variant. You should always consider two aspects: Do you want to work part-time after the birth and how high was your income in the calendar year before the birth?
These aspects are decisive for whether Basic Parental Allowance or ElterngeldPlus is better suited for you. In case of doubt, the responsible parental allowance office can advise you and address your individual situation.
We recommend that you deal with the topic extensively and prepare everything before the birth. As soon as your baby is born, you can simply apply for parental allowance digitally and get everything underway.
Sources:
- https://familienportal.de/familienportal/familienleistungen/elterngeld/faq/wie-viel-elterngeld-kann-ich-bekommen--124616
- https://www.bmbfsfj.bund.de/bmbfsfj/themen/familie/familienleistungen/elterngeld
- https://verwaltungsportal.hessen.de/leistung?leistung_id=L100001_378962506
- https://www.zbfs.bayern.de/familienleistungen/elterngeld/
