A majority of Germans support the reduction of parental benefits for higher-income individuals, which will go into effect in April. According to a representative online survey commissioned by the Federal Ministry of Family Affairs, 63 percent of respondents believe that lowering the income threshold for parental benefit entitlement to €200,000 per year is the right approach. Even among potentially affected populations such as families or individuals under 40 years old, there is a majority in favor of the reduction, with only a quarter opposing it.
The new regulation will result in a decrease in the number of people eligible for parental benefits. For couples and single parents who have children from April 1 onwards, the annual income limit for parental benefit entitlement will initially be €200,000. By April 1, 2025, this limit will be further reduced to €175,000. If this threshold is exceeded, parents will not receive any parental benefits. Previously, the limit was €300,000 for couples and €250,000 for single parents. The taxable income is usually significantly lower than the gross income due to tax exemptions and deductions for expenses such as child support payments and healthcare costs.
The survey conducted by the Institute Verian on behalf of the Federal Ministry of Family Affairs from March 6 to 14 involved 1057 selected participants. The majority of respondents supported the new rules around simultaneous parental benefit claims by both parents, which will be limited to a maximum of one month and only within the first twelve months of the child’s life for births after April 1, 2024. 45 percent found this change to be correct or somewhat correct, while 27 percent disagreed. Additionally, exceptions for simultaneous claims were permitted for parents of multiples, premature babies, and children with disabilities, a decision supported by 78 percent of respondents.
The survey also revealed that 63 percent of Germans support the cut in parental benefits for higher-income individuals, which will take effect in April. According to the representative online poll, 63 percent of respondents believe that lowering the income threshold for parental benefit eligibility to €200,000 per year is the right or somewhat right decision. Even among potentially affected demographics like families or those under the age of 40, there is majority support for the reduction, while only 25 percent oppose it.
With the changes, the scope of individuals entitled to parental benefits will be reduced. For couples and single parents who have children starting April 1, the previous annual limit for parental benefit eligibility will decrease to €200,000. By April 1, 2025, this limit will be further reduced to €175,000. If this limit is surpassed, parents will not receive any parental benefits. Previously, the limit was €300,000 for couples and €250,000 for single parents. The taxable income is generally lower than the gross income because of exemptions and deductions for expenses like child support and healthcare costs.
The Institute Verian conducted the survey on behalf of the Federal Ministry of Family Affairs from March 6 to 14, with 1057 selected participants providing their opinions. The majority of respondents supported the revised regulations allowing both parents to claim parental benefits simultaneously for a maximum of one month and only during the first twelve months of the child’s life from births after April 1, 2024. 45 percent found this change to be correct or somewhat correct, while 27 percent disagreed. Additionally, exceptions for simultaneous claims were permitted for parents of multiples, premature babies, and children with disabilities, a decision supported by 78 percent of respondents.
