Parental leave & finances

Financial planning for parental leave (Germany):

Parental allowance: 65–67% of net income before the birth, at least €300, at most €1,800/month. Basic parental allowance: 12 months (+2 partner months). ElterngeldPlus: longer, but less per month.

Tax class trick (legal!): switch to tax class III 7+ months before maternity leave (if married). This increases net pay and thus the parental allowance – savings: often €200–400/month.

Adjust your budget: less income, but also lower expenses (no commuting, no lunches out). Draw up a realistic calculation.

Don't forget: apply for child benefit (€259/month), check health insurance (family insurance in the statutory system), inform your employer in good time.