Parental allowance 2025: New income limits and changes to parallel receipt

Significant changes to parental allowance came into force on April 1, 2025. These relate in particular to the income limits for entitlement and the possibility of both parents receiving the benefit at the same time.

Uniform income limit of 175,000 euros

For births from April 1, 2025, the income limit for receiving parental allowance will be set at a uniform €175,000 taxable annual income - for both couples and single parents. The income in the calendar year prior to the birth of the child is decisive. If this limit is exceeded, there is no longer any entitlement to parental allowance.

Restrictions on parallel receipt of basic parental allowance

The possibility of receiving basic parental allowance at the same time will be newly regulated for births from April 1, 2024. Simultaneous receipt by both parents will only be possible for a maximum of one month and only within the first twelve months of the child's life.

Exceptions for special cases

However, there are exceptions to this rule. Parents of children born particularly prematurely (at least six weeks before the expected date of delivery), parents of multiples and parents of newborn children with disabilities and siblings with disabilities for whom they receive the sibling bonus can continue to receive basic parental allowance as required, in particular for more than one month at a time.

Effects for employers and employees

These changes have practical consequences for both employers and employees:

• Employer should adapt their internal processes to take account of the new regulations and inform their employees accordingly.

• Employees must take the new income limits and payment modalities into account when planning their parental leave and parental allowance.

Conclusion

The new regulations for parental allowance from April 2025 bring with them considerable changes. Careful planning and advice are therefore essential in order to avoid financial disadvantages and make the most of your parental leave. The law firm Haas und Kollegen GmbH will be happy to assist you with its expertise in tax and employment law.