Germany: adoption of new parental salary to encourage mothers getting back to work earlier

On November 28 the Bundesrat (constitutional body representing the federal states) gave the green light to implement a new ‘parental salary plus’ (ElterngeldPlus). This will give parents a parental salary for twice as long as previously (up to a maximum of 24 months) if s/he works part-time after the birth of the baby. If both parents choose to work part-time at the same time and for a period of 4 months ‘in the spirit of partnership’ they will receive an extra bonus. The Bundesrat vote marks the end of the legislative procedure and the new law should come into force on January 1 2015.
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Introduced in 2006 the current parental salary law (c.f. article No. 06966) gives a parent, who has stopped working after the birth of a baby, a substitution salary amounting to 67% of latest net pay (300 euros minimum and 1,800 euros maximum) for a period of 12 months. Should the other parent (in general the father) also decide to take parental leave the parental salary can be extended for a period of 2 months.

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