Calculating parental allowance

Parental allowance (Elterngeld) in Germany is calculated from the average net income in the 12 months before the birth.

Calculation formula:

• Income over €1,240/month: 65% of net pay
• Income €1,000–1,240: 66% of net pay
• Income under €1,000: 67% + top-up (up to 100% for very low incomes)
• Minimum: €300/month (even without previous income)
• Maximum: €1,800/month

The 3 variants:

1. Basic parental allowance:

• Full amount (65–67%)
• 12 months for one parent + 2 partner months = 14 months in total
• No employment over 32 hours/week

2. ElterngeldPlus:

• Half the amount, twice the duration
• 1 month of basic parental allowance = 2 months of ElterngeldPlus
• Ideal with part-time work (up to 32 h/week)

3. Partnership bonus:

• 4 additional ElterngeldPlus months
• Condition: both parents work 24–32 hours/week

Income limit (since April 2025):

• No parental allowance with taxable income over €175,000 (couples)
• Single parents: limit at €150,000

Optimisation tips:

• Optimise the assessment period: tax class III for the parent receiving the allowance (switch at least 7 months before the birth)
• Note the progression clause: parental allowance increases the tax rate on your other income!
• ElterngeldPlus + part-time: often more money in total than basic parental allowance alone