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ARTICLE · 06 JUNE 2020

Making Parental Allowance ‘Crisis-Proof': A New Proposal From Germany

Parents have taken on many roles in the ‘Corona era': home school teachers, kindergarten carers, stressed-out employees in their home offices or working on the frontline in key professions.

GermanyCoronavirus (COVID-19)

Parents have taken on many roles in the ‘Corona era': home school teachers, kindergarten carers, stressed-out employees in their home offices or working on the frontline in key professions. But should they also bear a double financial burden in this exceptional situation? A new Government bill has made it clear they should not.

Parental allowance before the new ‘Corona regulation'

So far, parental allowance has been paid at 67% of income with some variations for those entitled to it with low or high incomes.

The relevant income is deemed to be the average income earned in the last twelve calendar months before the birth of the child. The income actually earned during this period is taken into account, even if the income was (partially) reduced during these twelve months, for example due to short-time work. This in turn means that the reduction in pay due to short-time work has two effects for expectant parents: on the one hand, their pay is reduced at the time

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