Table of Contents
The three most important points at a glance:
Elterngeld is an offer from the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth. However, certain authorities in the respective federal states are responsible for its implementation.
The parental calculator can help you to check your entitlement to this support.
With the right strategy and options such as a Junior Depot, it is possible to get more out of your parental allowance and benefit from regular earnings.
Applying for Elterngeld in 2024: How to get the best for your family and benefit in the long term
Especially in 2024, with increased inflation and the associated cost of living, it's important to apply for all the support you can.
In Germany, parents can apply for Elterngeld (parental allowance) if they want to spend time with their newborn child. This is intended to help close the income gap caused by the loss of a salary.
However, there are not only a few requirements that need to be met when applying, it also makes sense to combine parental allowance with investments.
Discover how to apply for parental allowance 2024, make the most of it and at the same time make provisions for your child's financial future.
What is parental allowance? — All information in brief
Parental allowance is a state support programme offered by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth. However, certain offices in the respective federal states are responsible for the implementation and as contact persons.
You can find a list of the office responsible for your federal state on the Federal Ministry's website.
Parental allowance also consists of three parts, which may apply depending on your family situation:
Basic parental allowance
- Duration of entitlement: Parents can receive up to 14 months of basic parental allowance together if both parents are involved in childcare. One parent can claim between 2 and 12 months. Single parents can receive the full 14 months.
- Amount: Depending on the net income lost, between 300 and 1800 euros per month. In 2024 it will be 67%.
- Rules for premature births: For premature births (at least 6 weeks before the expected date of birth), there are up to 4 additional months of basic parental allowance.
- Utilisation: The basic parental allowance must be used in the first 14 months of the child's life. After that, only Parental Allowance Plus or the partnership bonus is possible.
Elterngeld plus
- Purpose: Provides additional support for parents who want to work part-time during parental leave.
- Duration of entitlement: Twice as long as basic parental allowance. One month of Basic Parental Allowance is equivalent to two months of Parental Allowance Plus.
- Amount: The Parental Allowance Plus is a maximum of half of the basic parental allowance.
Partnership bonus
- Purpose: Promotes the sharing of childcare between partners and enables parents to work part-time at the same time. This is also available to separated parents as long as they both receive it.
- Duration of entitlement: Both parents can receive between a minimum of two and a maximum of four additional months if they work between 24 and 32 hours per week part-time at the same time.
- Prerequisite: Both parents must work the specified part-time hours for a minimum of two and a maximum of four months at the same time.
- Amount: If you both work part-time at the same time, you can receive between 150 and 900 euros per month in addition to your salary for up to 4 months.
The income limit from April 2024
One of the most important changes to the child benefit regulations concerns the income limit: couples who earn more than 300,000 euros a year together will no longer be entitled to parental allowance at all.
It is therefore particularly important to check early on whether you are eligible.
Tip: Use the parental allowance calculator to make an exact estimate of your entitlement. This will enable you to plan the payment in the best possible way.
The Elterngeld application - these are the things you should consider
To apply for Parental Allowance 2024 correctly and on time, you should follow the steps below:
The following requirements must generally be met so that you can apply for parental allowance:
- Your place of residence is in Germany.
- You are responsible for the care and upbringing of your child.
- You live in the same household as your child.
- You either do not work at all or work a maximum of 32 hours per week.
If these conditions are met, you can follow the steps below:
- Apply early: make sure you submit your application at least seven weeks before you want to start receiving payments. You can apply for parental allowance online in some federal states or use the parental allowance application PDF of the respective federal state and submit it to the specified office.
- Provide documents: In order to apply for parental allowance correctly, you will need proof of income for the last twelve months. This also includes the employer's certificate for parental allowance. (More on this in the next section). You will also need your child's birth certificate.
- Planning the parental allowance months: Decide whether you would like to claim Basic Parental Allowance or Parental Allowance Plus. Parental Allowance Plus can be particularly useful if you want to work part-time, as it is paid for a longer period. (You can also change this decision at a later date).
The employer's certificate for parents
Your employer or employer's representative is obliged to issue you with the following documents:
- Certificate of your working hours while receiving parental allowance.
- Certificates of internal allowances for maternity/paternity benefit.
- If you are a soldier or a civil servant, you will need certificates of your pay during maternity leave and of the allowances paid to you.
- If you will be working less in the future, additional evidence may be required to show what measures have been taken to reduce your workload. Examples of this are: hiring a replacement, colleagues taking over tasks or a reduction in assignments.
Parental allowance for the self-employed
If you are self-employed, the process is similar. However, instead of your employer's certificate, you submit your most recent tax assessment.
When applying, you must also submit a separate declaration about your previous working hours and your working hours while receiving parental allowance.
Maximise your entitlement through proper planning
To ensure that you really do receive the maximum benefit from this state support, you should bear these points in mind:
Seek advice early on: Take advantage of parental allowance counselling at your parental allowance office to ensure that all your details are correct and that you don't miss any important deadlines.
Take parental allowance into account for tax purposes: Parental allowance is tax-free, but is subject to progression, which means that it increases the tax rate on your other income.
Self-employed people and parental allowance: Applying for parental allowance on a self-employed basis requires particular care. Make sure that all proof of income is correct, as otherwise there may be reductions.
Save money: It is worth regularly setting aside a portion of your parental allowance to generate profits on the side. You can do this very easily, for example, with Junior Depots.
Junior Depots: Long-term provision with parental allowance
Parental allowance not only offers the opportunity to secure your livelihood during parental leave, but also to make long-term provisions for your child's future.
One of the best ways to do this is to set up a Junior Depot Account. This is a special custody account that is held in the child's name and into which parents or grandparents can make regular payments.
Why is a junior custody account so useful? It makes it possible to start with small amounts at an early stage and build up a small fortune over the years. With so-called robo-advisors, there are even ways to do this completely automatically!
Thanks to the long investment period, you benefit from the compound interest effect and can give your child a secure start to financial independence.
Here are some junior custody accounts that we have already tested for you:
| Provider | Custody account fee | Minimum age | Minimum savings rate | Special features |
|---|---|---|---|---|
| 1822direkt | free of charge | 0 years | €25 | €100 bonus, 100 ETF savings plans without fee |
| Deutsche Bank Maxblue | free of charge | 0 years | €25 | 340 ETFs, application possible completely online, savings rate can be adjusted at any time |
| Consorsbank | free of charge | 0 years | €10 | Including call money account, 18 free ETF savings plans |
Conclusion: Securing the future with smart parental allowance strategies
Parental allowance offers many opportunities to provide financial security for your family. By planning properly, using tools such as the parental allowance calculator and applying for parental allowance early, you can make the most of this benefit.
However, it is also worth thinking one step ahead and securing your child's financial future with regular returns.
A Junior Depot is a smart option here to build up long-term assets and enable your child to make their first investments, such as their first home, car or studies.
Discover more junior depot accounts on our website!
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