Thursday, July 18, 2024
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    “Parental allowance is not a social benefit”


    Because of the savings targets set by the Federal Finance Minister, Federal Family Minister Lisa Paus (Greens) announced without much enthusiasm that parental allowance for couples above an annual income of EUR 150,000 is to be abolished. So far, the limit is 300,000 euros. The parental allowance is available for up to 14 months, it amounts to 65 percent of the previously earned salary, but no more than 1800 euros per month. The planned reduction should bring several hundred million euros a year for the federal budget. But what does it mean in terms of family policy? The SZ spoke about it with the parental allowance and equality expert Katharina Wrohlich from the German Institute for Economic Research.

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