Decline in Parental Allowance Recipients Post-Birth

Recent statistics reveal a notable decline in the number of parents receiving parental allowance in Germany. In the previous year, approximately 1.67 million fathers and mothers accessed this financial support, which marks a decrease of around 95,000 recipients, or 5.4%, compared to 2023. This trend has persisted for the third consecutive year, with the figure in 2024 being about 10.6% lower than in 2021.

In contrast, the number of births has experienced a preliminary decline of about 15% over the same period. Parental allowance serves as a wage replacement for parents who opt to stay home after the birth of a child.

Interestingly, there has been an uptick in the uptake of the Parental Allowance Plus, which is becoming increasingly popular among parents. According to the statistics, around 613,000 recipients of parental allowance indicated their intention to utilize Parental Allowance Plus in 2024. This figure includes 42.3% of eligible mothers and 20.6% of fathers. Overall, 36.7% of all parental allowance recipients planned to incorporate Parental Allowance Plus into their benefits, up from 34.8% in 2023.

Introduced in 2016, Parental Allowance Plus is designed to provide lower monthly payments compared to the standard parental allowance; however, it extends over a longer period, ensuring that the total benefit amount remains consistent.

When examining the demographics of parental allowance recipients, it was noted that the percentage of fathers among these recipients declined slightly to 25.8% in 2024 from 26.2% the previous year. This marks the first significant decrease in this demographic since 2015 when the father's share was only 20.9%.

In terms of regional variations, Saxony led the nation with the highest proportion of fathers receiving parental allowance at 29.5%, followed by Baden-Württemberg at 28.1% and Bavaria at 27.8%. Conversely, the Saarland recorded the lowest percentage at 20.6%.

Furthermore, the average duration of planned parental allowance among women remained stable at 14.8 months in 2024, while the average duration for men was significantly shorter at 3.8 months.

Looking ahead, the parental allowance system is set to undergo changes starting in April 2025. Only single parents and couples with a taxable annual income of up to EUR175,000 will be eligible for parental allowance for children born on or after April 1. This adjustment comes after a previous reduction from EUR250,000 in April 2024, down from an initial threshold of EUR300,000.

This shift has sparked discussions regarding the potential abolition of parental allowance entirely, with calls for its elimination being voiced by various officials, including Achim Brötel, president of the Landkreistag, and Clemens Fuest from the Ifo Institute.