Unfortunately, to expect a baby also means completing a lot of paperwork. The biggest paperwork is the application for parental allowance - and that has become quite complex, says Pro Familia adviser Hannelore Lambertz-Eichhoff.
The social worker from Mönchengladbach has been advising expecting parents for 25 years. But since the Elterngeldreform in July 2015, the need has only really big. "There's a lot of confusion about parental benefit plus," she says.
There are these parental benefit models
Based parental allowance
The basic parental allowance can be applied for by all new parents. It usually amounts to between 65 and 67 percent of the average net income of the last twelve months before birth - at least 300, at most 1800 Euro a month. If only one parent applies for parental benefit, it will be paid for twelve months. If the partner also takes at least two months off for the child, the period will be extended by two months. Single parents are entitled to regular 14 months. The basic parental allowance can be combined with the other two models.
Parental Benefit Plus
The Elterngeld Plus is particularly suitable for employees and self-employed people who want to work again by the hour or part-time after birth. They can then earn up to 50 percent of their previous salary without being charged to the parental allowance. For this, only half of the parental allowance is paid each month, but twice as long - ie up to 24 instead of up to twelve months. The performance was only introduced in 2015.
partnership Bonus
The partnership bonus should be selected by parents who share care for the child and work for at least four months in parallel between 25 and 30 hours a week. As a reward, the state gives them four additional parental benefit plus months. The reference period can be extended up to 32 months. However, the bonus must be paid back in full if the conditions are not met. This is already the case if a parent works just one week less or more than 25-30 hours.
Other counseling centers also report problems when filling out. "In our experience, a lot of false knowledge circulates in the network," says Tim Trinkies, founder and CEO of the commercial consulting platform Elternzeit.de. "A lot of the parents do not exploit their options in our opinion, one hundred percent."
The Elterngeld.de platform, which also offers fee-based counseling, evaluated 1200 parental allowance applications last year that applicants had completed without their help. They noticed some mistakes again and again.
The main points why expectant parents get less money than they deserve:
1st mistake: Fathers apply for leave instead of parental leave
Many fathers go on holiday after the birth of their child instead of applying for parental leave from the employer. "Thus, these fathers miss the chance of state performance," said Patrick Konrad, spokesman Elterngeld.de. Because even fathers have a legal right to parental leave and parental allowance.
According to Lambertz-Eichhoff, some father deliberately chooses the holiday option out of fear for his job. "In smaller, conventional companies that still happens," says the social worker.
2. Mistake: Parents work despite basic parents money
During parental leave you can work up to 30 hours a week. The income, however, will be credited to the parental allowance. Anyone who wants to continue working during parental leave should therefore apply for Elterngeld Plus, the counseling centers say in unison. Then the income is credited only if it is over 50 percent of the original earnings. You only get half the parental allowance, but twice as long. So you do not lose money.
3. Mistakes: Parents can pay off remaining vacation and bonuses - no more mistakes
Until a few months ago, this was actually still a mistake: If you were to pay off your holiday during the parental allowance, this also counted as income and was offset with the parental allowance. For this reason, even counseling centers incorrectly recommend that one-time payments such as holiday pay, commissions or bonuses should not be paid out during parental benefit payments. Even in an earlier version of this text that was still named as a mistake.
However, it is correct that you do not receive any remuneration that is not paid on an ongoing basis. This is already the case when calculating the amount of the parental allowance and therefore also applies if you receive one of these one-off payments during parental leave. This has been decided by the Federal Social Court.
4th mistake: parents continue to use a company car
The company car is also considered as work remuneration. That know the least, according to Lambertz-Eichhoff. Consequently, this "pecuniary benefit" is also offset against the parental allowance. The parental allowance is correspondingly lower. You need to figure out whether it makes more economic sense to return the company car to the employer in time or apply for Elterngeld Plus.
5. Mistake: Pairs do not meet the partnership bonus terms
"The partnership bonus sounds good, but is simply not practical," says Pro-Familia consultant Lambertz-Eichhoff. After all, parents only receive the benefits if both partners work 25 to 30 hours a week for four months at a time.
The most important questions about parental allowance
How is the parental benefit calculated?
It is calculated according to the net salary which the employer has transferred to the mother or father twelve months before the birth. The parental allowance usually replaces 65 to 67 percent of the last net salary. The lower the salary, the higher the percentage. Parents receive a maximum of 1800 and at least 300 euros.
When is it worth changing the tax code?
If so the net salary is increased, mothers or fathers should submit an application to the tax office - for example, from tax code V to III. Since the Elterngeldstellen are based on the tax code, which was mostly in the year before the birth, you should take care of it in the first weeks of pregnancy.
I expect twins. How much parental allowance is mys?
For multiple births, the parental allowance for the second and each additional child increases by 300 euros.
I am unemployed, do I still receive parental allowance?
Yes. However, the parental allowance is credited as income. In the case of housing allowance, BAföG or the determination of income-related childcare contributions, it is taken into account if it exceeds the minimum amount of 300 euros (basic parental allowance) or 150 euros (Elterngeld Plus).
Do families with small children receive a sibling bonus?
Yes, in the amount of ten percent of the calculated parental allowance, but at least € 75 a month.
What changes with parental leave?
The new parental leave regulation stipulates that parents between the third and eighth year of life can apply for an unpaid leave of absence of up to 24 months (previously twelve). The employer does not have to agree. The parental leave after the 3rd birthday must be announced 13 weeks in advance (so far only seven weeks). The parental leave may now be divided into three instead of two sections so far.
"If only one of the two partners does not meet these requirements in one month, the parental allowance for both parents must be repaid in full over the four months," warns spokesman Konrad.
6. Error: Too late the tax code changed
Only married couples have this option: they can change the tax code to increase their net income for one of them - and thus the parental allowance. The parent who stays home longer should choose tax code III, the other parent will then carry the larger tax burden in class V.
The tax code change has nothing to do with traditional spouse splitting. Here, the spouse with the lower income carries the larger tax burden, usually this is the woman. For taxpayers who normally do not pay the spouse, tax class changes may be useful for one year.
The problem: The application for the change must be made no later than seven months before maternity leave begins. Since maternity leave begins six weeks before the expected date of birth, the mistake is difficult to avoid, says Lambertz-Eichhoff. "You have to act before you're pregnant."
Editor's note: In an earlier version of the text, it was said that parents had to work 20 to 30 hours to get the partnership bonus. Correct are 25 to 30 hours. We corrected the number. In addition, we have corrected in section 3 outdated information on crediting holiday pay and bonus payments.