Germany: law on parental benefit amended

On Friday 29 January, the German Bundestag adopted several major amendments to the “federal law on the parental benefit and parental leave” (Bundeselterngeld- und Elternzeitgesetz –BEEG), which has governed parental leave and the benefit (Elterngeld) paid to parents for the past 14 years (see article n°10518), all with a view to improving options for a better work-life balance. First of all, there is greater flexibility regarding part-time work. Parents, who can share childcare duty and the parental benefit (maximum 14 months for both) as long as they work part-time, can now work up to 32 hours a week instead of 30. The ElterngeldPlus parental benefit, under which the allowance paid is lower but over 24 months provided they work part-time, is not affected. Meanwhile, for the so-called “partnership bonus”, whereby parents that both work part-time can obtain the parental benefit for a further two months, the working hour range to qualify has been enlarged from between 25 and 30 hours per week to between 24 and 32 hours per week. In addition, it will no longer be necessary to prove that one meets the conditions for receiving this bonus. This obligation will be replaced by random checks. Similarly, parents who cannot work part-time because of the pandemic will not be obliged to repay the partnership bonus until 31 December 2021. The amended law also allows the parental allowance level to be maintained regardless of other temporary benefits one may receive, such as sickness benefit or short-time working. Meanwhile the situation of parents of children born prematurely has been better taken into account. The latter will receive the parental benefit for a longer period: one month longer for a birth that is 6 weeks premature, 2 months for 8 weeks, 3 months for 12 weeks and 4 months for 16 weeks. Finally, the annual income threshold above which a couple cannot receive the parental benefit has been lowered from €500,000 to €300,000 (€250,000 for single parents).