Federal Minister for Families, Karin Prien (CDU), has defended the revised parental allowance reform, confirming that the new draft achieves several key objectives. According to Prien’s address to ARD-Hauptstadtstudio, the parental allowance has been made “more modern, simpler, more partnership-oriented, and more attractive.” While acknowledging the public criticism leveled against the initial proposals, she stated that extensive discussions were held with the three coalition partners in the government, leading to the development of a “good model” that better serves the needs of young families.
Crucially, Prien maintained that the core provision-the entitlement period of 14 months of basic parental allowance-will remain intact. She emphasized that this is not an “aborted step” (a rollback), particularly since the initial draft only required twelve months, a length that drew criticism even within the governing bloc.
The heart of the reform lies in creating a more flexible and shared system for parental leave. Moving forward, both parents will be able to choose four months of basic parental allowance, which comes with a 80 percent replacement rate. An additional six months are available for flexible allocation. Furthermore, the option for Parental Allowance Plus will remain in place. The Minister aims to strengthen fatherly involvement and boost women’s professional prospects. Prien noted that studies indicate a high desire among young fathers to spend more time with their families, while simultaneously pointing out that family and caregiving duties in Germany are still disproportionately borne by mothers. Her goal is therefore to ensure that the division of labor within couples can become fairer.
The revised draft also addresses concrete daily concerns of young families. She was particularly convinced by feedback regarding the adjustment period in daycare centers (Kitas). Under the original plan, the parental allowance would expire after twelve months, but the legal right to a daycare spot only begins at the thirteenth month. This delay could have created a difficult gap during the vital adjustment phase, a point that convinced Prien of the challenges faced by young families. Moreover, the regulations for the self-employed will be improved, and the calculation basis standardized: going forward, the previous year’s income will be the primary basis for both employees and the self-employed, with additional income components also accounted for. Greater flexibility has also been introduced regarding the twin bonus and shared entitlement periods.
Despite restoring the 14-month entitlement period, Prien remains committed to achieving savings. She currently forecasts that this model could save approximately 1.3 billion Euros starting in 2030. Looking ahead to 2027, the Minister expects no change in expenditure compared to previous plans due to declining birth rates. Regarding the smaller savings compared to the original concept (1.6 billion Euros annually), she confirmed that discussions are ongoing with the Finance Ministry, noting that the Family Ministry is not responsible for covering the shortfall.
Simultaneously, Prien links the reform to a crucial labor market objective: increasing the likelihood that more women can re-enter and work in full-time roles earlier. She highlighted that the current system often pushes women into part-time roles from which it is difficult to leave. The reform is intended to bring together the freedom of choice, gender equality, and a better balance between family life and career.
