Every parent is entitled to parental leave to care for and raise their child. Both parents together may also take up to 3 years of parental leave at the same time. During parental leave, the mutual primary obligations of the employment relationship are suspended and resume in full upon the end of parental leave.
Start of Parental Leave
For the father, parental leave begins no earlier than the birth of the child, and for the mother, it begins at the end of maternity leave, typically 12 weeks after the birth of the child.
Applying for Parental Leave
The application for parental leave must be submitted in writing—that is, with a handwritten signature—and received by the employer no later than 7 weeks before the start of parental leave. An application sent by fax or email is not sufficient.
Parental Allowance—How Much Parental Allowance Is Available, to Whom, and for How Long?
Mothers and fathers are entitled to parental allowance provided that their taxable income in the calendar year prior to the child’s birth was less than €250,000.00 for single parents and less than €500,000.00 for couples.
The amount is based on the specific net income of the respective parent. Between 65% and 100% of the net monthly earnings are paid, up to a maximum of €1,800.00 at present.
Parental allowance is paid for the first 12 months of the child’s life, plus an additional 2 months if the mother and father share parental leave (basic parental allowance).
With Parental Allowance Plus, you can receive government benefits for up to 36 months.
Applying for Parental Allowance
The application for parental allowance is submitted to the relevant parental allowance office. Each federal state has a designated form for this purpose, which you can find online on the Ministry of Family Affairs’ website.
Retroactive Payment of Parental Allowance?
Parental allowance is paid retroactively for a maximum of 3 months. The form must specify which parent is applying for parental allowance and for what period. If both parents have custody, both must sign the application.
Part-Time Employment During Parental Leave
While receiving parental allowance, parents may work part-time (15 to 30 hours per week) at companies with 15 or more employees. However, any income earned in this way is fully deducted from the parental allowance.
Any additional income earned while receiving parental allowance must be reported. Failure to do so may result in a fine!
Optimizing Parental Allowance
12 weeks before maternity leave begins, mothers and fathers should have been primarily in tax bracket III for 12 months prior to the birth if they intend to be the child’s primary caregiver. Although more taxes are due in the final months before the child’s birth, these are offset by a higher parental allowance.
Parental Allowance for the Self-Employed
For self-employed individuals, income is defined as profit—that is, revenue after deducting expenses. Consequently, the fewer expenses claimed, the higher the profit—and the higher the parental allowance.
Parental Allowance with a Fixed-Term Employment Contract
If you have a fixed-term employment contract, you can also take parental leave after the birth of your child. If the end of the fixed term falls during parental leave, the employment relationship ends at that time without the need for termination.
Protection Against Dismissal During Parental Leave
There is special protection against termination during parental leave, effective from the time you submit your request to your employer, at the earliest 8 weeks before the start of parental leave.
Termination is permitted only in exceptional cases, such as when the business or a part of the business is shut down, or when serious misconduct on the part of the employee precludes continued employment. The employer is required to obtain an official declaration of admissibility from the authorities for terminations of this nature.
Terminations during parental leave may, if necessary, be challenged by filing a lawsuit for protection against dismissal within 3 weeks of receiving the notice of termination .
Extension of Parental Leave
A request to extend parental leave must also be submitted in writing to the employer. This should be done with 7 weeks’ notice prior to the end of the first phase of parental leave. A request to switch the allocation of parental leave between the parents may also be made for good cause. Good causes may include the partner’s illness, the parents’ separation, or the child’s illness.
Twins and Multiple Births
Upon the birth of twins or multiple births, parents receive a flat rate of €300.00 in addition for the second and each subsequent child—the so-called multiple-birth supplement.
