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FAMILY

Elterngeld: How Germany plans to change parental allowance

Germany is planning to cut entitlement to Elterngeld for higher earners - but after an uproar, fewer people will be affected. Here's a look at the latest planned changes.

Published: 5 December 2023 15:11 CET
Updated: 14 December 2023 13:29 CET
A baby and parent
There are changes to Elterngeld that future parents should know about. Photo: picture alliance/dpa | Sebastian Gollnow

What is parental allowance?

Germany has a parental leave system known in German as Elternzeit with the option to apply for up to 14 months of Elterngeld or parental allowance.

Unlike Mutterschutz (maternity leave), which is only for mothers in the run-up to and after the birth of their child, Elterngeld is an allowance of paid time off that both parents can split however they choose. 

Elterngeld usually makes up 65 percent of the parent’s previous net income, up to €1,800 per month and a minimum of €300.

But the German government decided in summer to cut entitlement to this allowance in order to make savings. 

How is the allowance going to change?

At the moment, couples in Germany can receive parental allowance up to a combined annual taxable income of €300,000. 

Under initial government plans, this limit was set to fall to €150,000 for couples, meaning those earning a combined income over that limit would not receive parental allowance.

However, the plans received a barrage of criticism from higher earners. 

READ ALSO: ‘A horrible idea’: How cuts to Elterngeld will affect families

Under pressure to rethink the plans, the coalition then agreed in November that it would be lowered gradually – and not as much as originally planned. The limit will first drop from €300,000 to €200,000 and then to €175,000.

The limit for single parents – currently at €250,000 – will be lowered to €150,000.

Tens of thousands of families are likely to lose their entitlement to parental allowance under the plans. 

Last year, according to Germany’s Statistical Office, 1.8 million in Germany received Elterngeld, the majority of them women (just under 1.4 million).

What is the timescale for this?

Nothing will change for parents whose babies are born by March 31st 2024. From April 1st, 2024, however, the new €200,000 limit will apply for couples, and the €150,000 limit for single parents.

The new limit of €175,000 will apply to couples whose baby is born from April 1st, 2025. The limit of €150,000 for single parents will remain at that level. 

“By delaying the reduction, we give families more time to adjust to the changes,” said Felix Döring, a Social Democrat who is part of the government team working on the changes.

A baby lying down

Photo by Picsea on Unsplash

Are there changes to the so-called ‘partner months’ ?

Yes. Up to now, couples have been able to receive standard parental allowance for a maximum of 14 months and can freely combine this. 

They can take turns, so that one stays at home for nine months and the other for the rest of the time, for example.

So far, it has also been possible for both parents to take a career break for seven months to care for the child and receive parental allowance at the same time.

However, this will no longer be allowed for parents of children born from April 1st 2024. on the plans.

READ ALSO: What families in Germany need to know about Kindergeld’s replacement from 2025

Elterngeld will remain at 14 months in total, “but staying at home together and receiving parental allowance at the same time should only be possible for one month within the first 12 months of the child’s life”, reported German media wire DPA. 

However, this change will not apply to couples who give birth to more than one baby at the same time, and premature babies. 

What else should I keep in mind?

As things stand, these are the current plans but there is a budget crisis ongoing in Germany.

That means that the budget for next year is still up in the air so it’s not impossible for there to be some changes as the government tries to save money. 

READ ALSO: What happens if Germany can’t decide on a budget for 2024?

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SCHOOLS

What is Germany’s digital pact for schools and how does it affect pupils?

A key programme for digitalision in German schools expires on May 16th. Has the initiave been successful - and what comes next?

Published: 16 May 2024 16:57 CEST
What is Germany's digital pact for schools and how does it affect pupils?

When it comes to digitalisation, Germany is a country very much under construction – and nowhere has that been more apparent than in schools. 

During the Covid-19 pandemic years, pupils suffered major setbacks as schools struggled to set up the infrastructure for remote and digital learning. 

This failure to set up digital learning quickly enough is seen as a key reason for Germany’s dismal performance in recent rankings of schools around the world.

Perhaps the most shocking of these came from a 2018 PISA study that ranked Germany 66th out of 78 countries in the availability of digital learning tools and 76th out 78 in the digital skills of teaching staff.

Desperate to turn things around, the federal and state governments launched their ‘Digital Pact for Schools’ back in 2019, earmarking a total of €6.5 billion for improving things like Wifi, the availability of digital equipment and administrative support.

Five years later – as the scheme expires – there are signs that the project has been a success. 

READ ALSO: German school pupils plummet to ‘lowest score ever’ in international rankings

How has the Digital Pact changed schools in Germany?

The €6.5 billion investment package consisted of €5 billion for boosting digital infrastructure in schools, €500 million for administrative support, €500 million for digital tools for teachers and a €500 emergency package for helping schools get set up for remote learning during the pandemic.

This was divided between the 16 federal states, with larger sums going to the states with the biggest populations and the highest number of schools. 

According to the Ministry of Education, around 90 percent of this sum has been either spent or earmarked since the fund was set up, with schools mostly using the money to purchase equipment like tablets and laptops for their classrooms. 

Out of the some 32,000 schools in Germany, around 29,000 benefited from the investment, the ministry revealed.

In the state of Bavaria alone, the Digital Pact helped fund 280,000 additional tablets in schools, bringing the total number up to 336,000. The number of digital classrooms, meanwhile, rose by 53,000 to 77,000 and the number of classrooms connected to wifi jumped by more than 60,000 to 101,000. 

Summing up the progress made in the last half decade, Stefan Düll, president of the German Teachers’ Association, said: “Most schools now have a good internet connection right up to the edge of the street,” even if no high-speed internet is available in the area. 

READ ALSO: School drop-outs rise across Germany as resources and teachers spread thin

According to the headteacher, there has also been significant steps forward in learning platforms, training for teachers and the availability of devices like tablets in schools. “Teaching can now utilise digital possibilities in many places,” he added. 

Is there still room for improvement?

Despite the investment, progress has been much slower in some regions and there are still many schools that don’t have access to wifi at all.

Düll also pointed out that, for schools to maintain high standards, there needs to be continuous investment for renewing subscriptions and replacing outdated or broken devices. This hasn’t always been forthcoming, he said. 

In addition, teachers often lack the administrative support they need to ensure that a digital lesson actually takes place in the case of technical problems. When it comes to training courses to get set up for digital learning, teachers are often unable to find the time while working more than 40 hours per week and coping with ever-worsening staff shortages.

School pupil in Germany

A school pupil studies history on a laptop at school in Germany. Photo: picture alliance/dpa | Marijan Murat

Finally, Düll sees room for improvement in the government’s attitude towards artificial intelligence (AI) and finding safe and ethical ways to incorporate it in the classroom.

“AI has an incredible amount of potential, an incredible amount of opportunities for our country as a whole, for Germany as a business location,” he said, “and Germany still has the chance to be at the forefront.”

However, since the current Digital Pact only mentions AI in passing, schools currently have to shell out for this themselves – and licensing software with high data protection standards doesn’t come cheap. 

Will there be a Digital Pact 2.0? 

There should be, but currently it’s unclear what form it will take or how it will be financed. 

Though the new pact is due to kick off in 2025, Education Minister Bettina Stark-Watzinger (FDP) is currently locked in a battle with the state culture ministers over where the money for the next investment programme should come from.

Previously, 90 percent of the funding came from the federal government, while just ten percent was put forward by the states. This time around, however, Stark-Watzinger is demanding a 50/50 split and also wants more say in how the programme should work.

One key sticking point is the amount of funding put into additional training for teachers. “The Digital Pact 2.0 must not become a mere order list for digital devices,” the FDP politician said recently. “Teachers are central to good digital education and need appropriate further training.”

Education Minister Bettina Stark-Watzinger (FDP) in Berlin

Education Minister Bettina Stark-Watzinger (FDP) in Berlin. Photo: picture alliance/dpa | Christophe Gateau

From the Education Ministry’s perspective, the next Digital Pact should expire in 2030 and function as the last major investment from central government. 

However, the states disagree on almost every front.

Not only would state education ministers like to see the 90/10 funding continue, but they also reject the idea of the federal government interfering on what the money should be used for. That’s largely because, under Germany’s federal system, states are primarily responsible for governing schools and education. 

In addition, the Länder reject the idea of an end date and would like to see the investment continue indefinitely.

READ ALSO: Six surprising facts about Germany’s school system

It’s still unclear when the next Digital Pact may be finalised. Relations between Stark-Watzinger and the state culture ministers have soured to such an extent that the FDP politician refused an invite to the next Culture Ministers’ Conference (CMK) that’s due be held in Saarland this June.

That means the deadlock is likely to continue into the foreseeable future. 

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