Changes to parental allowance came into force today. Changed income limits apply for births since April 1st. Parents who stay at home after the birth of a child are only entitled to parental allowance up to a taxable annual income of 200,000 euros. Until now, the entitlement was much more generous: only couples with an upper income limit of 300,000 euros did not receive parental allowance.

The taxable income results from the gross income less business expenses, other expenses and tax allowances. So it is lower than the gross income. Further innovation: If both parents stay at home at the same time, it is only possible to receive the so-called basic parental allowance at the same time for a maximum of one month and within the child’s first twelve months. Up to now, up to seven parallel subscription months were possible.