Parental leave

Everything you need to know about parental leave

Parental leave is an important part of balancing work and family life in Germany. It allows parents to take time off for the care and upbringing of their child after birth without losing their job. In this article, we answer key questions about parental leave, such as its duration, financial aspects, and how to apply for it.

How long is the statutory parental leave?

The statutory parental leave lasts a total of up to three years per child. This time can be flexibly divided between both parents, allowing them to adapt to the care of the child. It is important to know that parental leave can be taken until the child reaches adulthood (that is, until the age of 18). Generally, parents are not required to take the entire time in one go; they can split the three years into different segments, allowing for individual arrangements regarding parental leave.

The first 14 months after the birth of a child can be supported with parental allowance, which provides the financial basis during the initial period of parental leave. It is important that at least two months are reserved for one parent if both parents receive parental allowance. This regulation promotes an even distribution of caregiving responsibilities and allows both parents to actively participate in their child's life.

Who pays for the three years of parental leave?

During the parental leave itself, parents do not receive a salary from their employer, as parental leave is unpaid. However, the financing of the first months is provided through parental allowance, which represents an important financial support for parents. It is paid when one parent works less or not at all after the birth of the child.

The parental allowance is granted for a period of up to 12 to 14 months, with the amount based on previous income. Parents who were employed before the birth of the child typically receive between 65% and 67% of their net income, with the maximum amount being €1,800 per month. For parents who had no income before birth, a minimum amount of €300 per month applies, ensuring that these families also receive some support.

It is also important to note that parental allowance is tax-free but subject to progression reservation. This means that it increases the taxable income, which may lead to a higher tax rate. Therefore, parents should inform themselves about the tax implications to avoid unpleasant surprises during tax filing.

Applying for parental leave

The parental leave must be applied for in a timely manner with the employer, which is one of the most important phases in the planning process. Parents should submit their application at least seven weeks before the desired start of parental leave. To ensure smooth approval, it is advisable to carefully plan the desired duration of parental leave and the division between the parents.

When applying, parents should ensure that all necessary documents, such as the child's birth certificate, are ready. A written confirmation of the application with the employer is recommended, even if the application is submitted verbally.

It can also be helpful to have discussions with the employer in advance to clarify any potential questions or concerns. Many companies now have flexible models and support parents in the reconciliation of family and work. Open communication with the employer can help avoid misunderstandings and optimally shape parental leave.

Tips for optimal use of parental leave

To make the most of parental leave, parents should intensively explore the options and regulations before the birth. Here are some helpful tips:

1. Inform yourself about parental allowance: Use online calculators to find out how much your parental allowance might be and consider which option is best for you.

2. Plan the division of parental leave: Think about how you would like to split the three years between both parents to find a good balance between work and family.

3. Consider flexibility: Take advantage of the opportunity to take parental leave in several segments so that both parents can actively participate in the child's care.

4. Have discussions with your employer: Talk to your employer about your plans early on to receive understanding and support.

5. Utilise support from family and friends: Seek help if you need it. The support of relatives or friends can make parental leave more relaxed.

Conclusion

Parental leave offers parents the opportunity to take care of their newborns intensively and build an important bond. With a duration of up to three years and financial support through parental allowance, it is a valuable tool for young families.

Despite the challenges that parental leave can present, it is a unique opportunity to actively shape the first months in a child's life. Careful planning, timely application, and awareness of one's own needs and options can be crucial in how well families can make use of this time. Parents who stay well-informed and seek support can optimally shape their parental leave and strengthen their bond with their child.