Big Changes for Families in Germany in 2025
Big Changes for Families in Germany in 2025
In 2025, families in Germany can expect several significant changes in tax benefits, child support, and other areas. From an increase in child benefits to potential paid paternity leave, these changes are intended to support families better. This article outlines these major changes, providing clarity on what families can expect this year.
1. Increase in Child Benefits
One of the major changes in 2025 is child benefits, known as Kindergeld. It is now that from January 1st, every parent will be getting €255 per month per child. Additionally, it is also planned to rise further in 2026 by €4, which is now €259. The child supplement allowance known as Kinderzuschlag, especially for low-income families, has also been raised from €20 to €25 per month. This adjustment seeks to offer greater relief in terms of finance to families that cannot cover their expenses.
2. Tax Allowance Changes
One important change for parents is the raising of the allowance for parents from taxes, also referred to as Kinderfreibetrag. It has been raised by €30 to €3,336 for the year 2025. On top of that, the sum exempted for care, upbringing, or educational needs, currently at €1,464, amounts to €4,800 for each parent or €9,600 for every child.
3. Standard Tax Changes
Besides the above tax benefits on families, the German parliament and the Bundesrat passed some general relief measures. The former measure includes a basic tax-free allowance, increasing by €312 from January 2025, with an increased tax-free allowance to €12,096 and to €12,348 in 2026 to avoid eroding the rise in wages with inflation.
4. Child Maintenance Payments End
The ‘Dusseldorf table,’ outlining child maintenance payments for parents who live separately, has also been updated. As of January 2025, the minimum maintenance for children up to the age of six has increased by €2, making it €482. Furthermore, the rate of maintenance for students who do not live with their parents or live with only one parent is significantly higher. It was increased by €60 to be at €990 monthly.
5. New rules in Parental allowance
New measures for children born from April 1st, 2025, will be implemented regarding parental allowance, known as Elterngeld. In the new law, only those couples and single parents with an annual taxable income of no more than €175,000 are eligible for the parental allowance. The previous threshold was set at €200,000. The change is aimed at ensuring that the benefit goes to families that have a greater need for it.
6. Child Sick Days Entitlement
Working families will be assured of a hike in child sick pay in 2025. Parents with statutory health insurance will claim sick pay compensation, 15 sickness days per year per child while single parents claim 30. For those having more than one child, an entitlement is at 35 working days annually by each parent. Single parents having two or more children are also entitled to receive up to 70 working days a year. The law mandating this initially was enacted at the start of the COVID-19 pandemic but has been expanded until 2025.
7. Reforms in Change of Surname Laws
From May 2025, new regulations concerning surnames will come into effect. Married couples will have the option to choose a double name as their joint married name, combining both partners’ surnames without a hyphen. Children can also be given double names, regardless of whether their parents have adopted a double name. This change simplifies the current, more complicated system surrounding surname choices.
8. Additional Financial Support for Carers
From 2025, people caring for or being cared for at home will benefit from higher funding. PUEG brings with it several improvements, such as a 4.5 percent increase in all care benefits. The care allowance will increase by up to €52 per month, and care benefits will increase by up to €99 per month. The ‘relief’ amount will be increased to €131 per month, and an additional €91 per month will be provided for full inpatient care.
9. Paid Paternity Leave
A major and widely discussed potential change is the introduction of paid paternity leave (Vaterschaftsurlaub) for fathers and second parents. The previous coalition government had set a goal to pass the law in 2024, but it did not make it to parliament. With the framework already determined by the EU, experts assume that regulations on paid paternity leave will be introduced in 2025. If the law is passed, fathers and second parents will receive two weeks of paid leave.
10. Digital Pact 2.0
The much-talked-about Digital Pact 2.0 seeks to grant schools new funding for digital equipment and infrastructure. In the new scheme, each student will have a digital device, and the teacher will have to undergo a course in digital skills. This all depends on the newly elected government. Whether this plan will become a reality or not is uncertain.
11. Basic Child Allowance Not Coming into Force
Despite the high-level attention accorded to the plan for a basic child allowance scheme, it is not scheduled for implementation in 2025. The plan-the replacement of the Kindergeld and provision for a basic €250 per month per child together with further provisions for needy families-was dumped in the face of the breakdown of the coalition government. The initiative would have streamlined the process by bundling several existing benefits into a single allowance, thereby reducing bureaucracy for families and authorities.
The year 2025 brings a mix of confirmed changes and potential developments for families in Germany. With increased child benefits, updated tax allowances, and continued support for working parents, these changes are set to provide financial relief and greater flexibility. Although some initiatives such as paid paternity leave and the Digital Pact 2.0 are still pending, if adopted, they would have a significant impact on family life. Families need to keep track of the implemented changes to fully explore the benefits.
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