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German parental leave – your guide

Parental leave in Germany may seem amazing, but it is also complex and can be confusing, especially to a foreigner. In this week's JobTalk, The Local brings you a guide to what working mums and dads can expect.

German parental leave - your guide
A father on "elternzeit" with his child. Photo: DPA

The German system appears relatively gender-equal, with mothers and fathers granted the same leave entitlements, and rules allowing for both parents to devote large periods to both family and career in turn.

But despite this, a recent Forsa poll of 1,000 fathers and stepfathers between 20 and 55 suggested that just 38 percent of dads of children under six chose to take no parental leave at all, and 80 percent of fathers overall only stayed off work for two months after the birth.

Despite this, 81 percent of working dads said they thought a good father should spend as much time as possible with his children.

How much leave am I entitled to?

Both parents come under the same system of “elternzeit” (parental leave) so mothers and fathers can be confident their jobs are protected by the law for as long as they like until their child turns three. This includes step-parents sharing in the child's care.

Mothers, meanwhile, also have six weeks of compulsory paid leave before the birth and eight weeks afterwards. This is extended to 12 weeks following premature or multiple births.

How does it work?

The parent intending to take time off work must apply seven weeks in advance, and must limit their periods of leave to two during the three years – but each period can be as long as they want.

Additionally, if a parent takes a whole year of parental leave they cannot take any in the following year without their employer's permission.

Grandparents and other family members can also take parental leave under certain circumstances, for example if the parent is a minor.

What paternity pay and/or benefits can I claim?

Mothers are entitled to full pay during the six weeks before, and eight weeks after, the birth, known as “mother protection time”.

Both parents can claim parental benefits – if they are on leave during the first 12 months after the child's birth, along with two extra “partner months” of benefit if the couple claims jointly rather than separately.

The benefit is calculated at 65 percent of the parent's previous monthly salary, though it gets boosted slightly if they were earning €1,000 or less. Those with more young children also get a 10-percent (or a minimum of €75 a month) “sibling bonus”.

The total benefits are ring-fenced at a minimum of €300 and maximum €1,800 per month, while parents who were unemployed can also claim at least the minimum €300 a month.

Those receiving parental benefit are still allowed to work part-time up to 30 hours a week. And if their existing job is at a company with more than 15 employees, they are entitled to 15 to 30 hours part time work per week, unless the firm has specific reasons for not offering it.

Can I extend my leave?

In general, unplanned extensions and changes to parental leave must be agreed between the parent and their employer. For example, parents can extend their agreed leave with their boss' express approval, but there is no legal entitlement.

And if the employer agrees, a parent can also “carry over” 12 months of their possible three years to be used at any time before the child's eighth birthday.

Are there any planned reforms to parental leave?

No major reforms are expected in the near future, although new Families Minister Manuela Schwesig said in a recent interview she wanted to extend the system, subsidizing parents to cut their working hours in a bid to help them balance family and career.

By Alex Evans and Frances Foley

 

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WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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