Elterngeld (parental allowance) is the income-replacement benefit paid by German state authorities (Elterngeldstellen) to parents who reduce or cease paid work to care for a child in the first months of life. The standard Basiselterngeld replaces 65 to 67 per cent of the parent's average net income from the twelve months before birth, subject to a minimum of €300 and a maximum of €1,800 per month. Each parent receives a personal entitlement of two months, with a shared budget of 14 months; if both parents take leave, the family receives two additional partner months.
Parents who prefer a longer, lower-intensity payment may opt for ElterngeldPlus, which pays half the Basiselterngeld amount for up to twice as many months. Couples where both parents work part-time simultaneously for at least four months may also claim the Partnerschaftsbonus, providing four additional ElterngeldPlus months each. High earners with pre-birth income above €175,000 are excluded from Elterngeld for births from April 2025 onwards (a transitional threshold of €200,000 applied for births from April 2024). The same €175,000 ceiling applies regardless of whether the parent is assessed individually or jointly; the previous higher threshold for couples (€300,000) was abolished.
Applications are submitted to the relevant Elterngeldstelle of the Bundesland where the family resides. Employers are required to confirm the employee's pre-birth earnings via a standardised certificate (Arbeitgeberbescheinigung). Payroll departments should note that Elterngeld itself is tax-free but is subject to the Progressionsvorbehalt (progression clause), potentially raising the marginal tax rate on other income.