In Germany, each parent of a newborn is entitled to take parental leave for up to 12 months.
If both parents take leave, the state allows them to spend a total of 14 months with the child, providing monthly payments ranging from €300 to a maximum of €1,800—depending on their income level. However, starting April 1, couples who jointly earn €175,000 per year (taxable income) will no longer receive this benefit. Previously, the threshold was €500,000, but it has been gradually reduced since 2021.
The cancellation of benefits will affect relatively well-off families—initially a few dozen, and eventually likely more than 100,000 couples—as incomes in Germany continue to rise, and the €175,000 cap remains nominal. The government expects to save up to €250 million annually through this measure. However, more radical proposals are also emerging. For instance, Clemens Fuest, head of the ifo Institute for Economic Research, has suggested scrapping parental leave payments altogether, calling them a “non-essential benefit.” His statement sparked a wave of criticism.
In Germany, women still take parental leave far more often than men. This is largely due to the country’s prevailing “traditional” division of roles, where childcare and household responsibilities typically fall on women. Another factor is the significant income gap—on average, women in Germany earn 16% less than men—making it more financially logical for the higher-earning partner, usually the man, to continue working.
“By cutting parental benefits, you’re driving young, hardworking, and intelligent people out of Germany,” writes Die Weltcolumnist Kristina Schröder. Economist Matrike Hefgen points out that unlike other social benefits, the minimum and maximum parental leave payments have not been adjusted since 2007—despite inflation. She urges the government to stop digging into mothers’ pockets.
