Germany’s Parental Leave Shake-Up: More Cash, Shorter Window, and Dads Must Do More
13.06.2026 - 00:23:07 | boerse-global.de
Germany’s family minister, Karin Prien, is pushing a radical reform of the country’s parental allowance system — higher monthly payments, a reduced overall claim period, and a bigger minimum share of leave for fathers. The plan is driven by a €500 million budget cut that must be found in family policy for the 7federal budget.
Under current rules, couples can draw parental allowance for 14 months provided each parent takes at least two months. Prien wants to raise that minimum floor for fathers, meaning families would lose part of their entitlement if the father does not take more time off. The wage-replacement rate remains at 65 percent of net income, with monthly payouts ranging from €300 to a maximum of €1,800.
The reform targets a persistent divide: while half of all fathers now claim parental allowance, the German Women Lawyers’ Association (djb) notes that three-quarters of them stick to the bare two-month minimum. The djb opposes any cut to overall benefits and instead proposes a symmetrical model — four non-transferable months per parent over a 16-month window.
Unequal care work remains entrenched
Research from the Federal Institute for Population Research (BiB) confirms a familiar pattern: mothers still shoulder the vast majority of care responsibilities. The gap is especially stark when it comes to looking after sick children — where Germany ranks near the bottom in Europe. Fewer than half of fathers participate at a level comparable to mothers.
A DIW study commissioned by the Bertelsmann Foundation adds another layer: for many women, returning to full-time work barely pays off. The tax system makes expanding working hours financially unattractive.
Attack on spousal tax splitting
Early this week, eight prominent figures sent an open letter to Chancellor Olaf Scholz and Vice-Chancellor Robert Habeck demanding an overhaul of the spousal income-splitting regime (Ehegattensplitting). Their proposal: introduce a capped real-splitting system that limits the tax advantage for couples with wide income disparities. The freed-up revenue should be channeled to families with children. The signatories argue that the current system locks in unequal divisions of paid and unpaid work and widens the gender pay gap.
Clamping down on paternity misuse
Parallel to the benefit reform, the Bundestag approved a tightening of residency law on Friday. The aim is to prevent the abusive recognition of paternity solely to obtain a residence permit. Under the new rules, the foreigner’s authority must approve any recognition if there is a significant immigration-law imbalance between the parents. Exemptions apply to biological fathers and cases where a social-familial relationship already exists with the child. If a permit was obtained through deception, it can now be revoked. The Bundesrat is expected to examine the bill on 10 July.
Austria: Father’s Day as a wake-up call
The debate echoes across the border. Austria’s Catholic Family Association (KFÖ) launched a campaign ahead of Father’s Day (14 June) under the slogan “active fatherhood is overdue”. Only 18 percent of Austrian fathers currently take parental leave. Monitoring by the Vienna Chamber of Labour shows that nearly 58 percent of those who do stay home for a maximum of three months. The main barrier: the wage gap. Men earn on average 18.3 percent more than women, making a shared leave period financially difficult when the father is the higher earner.
