

At the outset, it was a singular demonstration. On September 9, in Hamburg's affluent and central Jungfernstieg district, parents rallied against a proposed bill aiming to restrict parental allowance to families with annual taxable incomes above €150,000." No to the abolition of parental allowance! Yes to equal rights!" they chanted, placards in hand, facing Lake Alster and the facades of luxury stores.
What is it all about? Elterngeld is a parental allowance introduced in 2007 to boost the birth rate in Germany. It can be paid up to the child's first 12 months, or up to 14 months if shared between both parents. It enables the parent who stops working to receive 65% of his or her net income, with a minimum monthly benefit of €300 and a maximum of €1,800. According to the latest figures from the Federal Statistical Office, almost 1.4 million women and 482,000 men received the benefit in 2022. On average, 42% of parents in Germany benefit from Elterngeld. Women take 12 months, while men (26% of recipients in 2022, compared with 20.9% in 2015) take two or three months. If the law is passed, parents earning more than €150,000 in taxable income per year will not be entitled to anything.
Announced in July by the Federal Family Minister, the Green Lisa Paus, the measure could be applied as early as January 1, 2024, if it is passed in Parliament in December. While the austerity plan decided by the Ministry of Finance imposes massive cuts, the Ministry for Family Affairs argues on its website that the wealthiest households could contribute more. Of the €13 billion allocated to it, €8 billion goes to the Elterngeld, with the remainder funding child protection and fighting violence against women, among other things. According to Paus, the measure would provide better support for struggling families.
But the problem is, it's not being well received. First of all, it has all happened too fast. The January 1, 2024 deadline means that women who are already pregnant would see all their budget forecasts go out the window. On social media, they are criticizing the bill, which they see as an attempt to punish them for having succeeded professionally and earning a good living.
There's the woman who is due to give birth in 2024 and plans to stop working for three months to bring her household income below the €150,000 threshold. There's the woman who knows she'll no longer be entitled to Elterngeld and is reluctant to resign to collect unemployment. There's the one who consults a tax adviser to deduct everything possible to keep her taxable income under the fateful €150,000 mark. And finally, there's the woman who pulls her hair out calculating: "What if I worked part-time? I'd contribute less to my pension, but I'd still get the Elterngeld. On the other hand, I run the risk of being sidelined when I return from parental leave." "In short," complained another, "it seems like this bill is designed to keep mothers at home!"
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