The New Income Cap from 2025
On April 1, 2025, the new income cap for Elterngeld came into effect. Couples with combined taxable income above €200,000 are no longer eligible. For single parents, the limit is €150,000. The previous limits were €300,000 (couples) and €250,000 (single parents).
Who Is Affected?
The reduction primarily affects dual-income couples in the upper income segment. With a combined gross annual income of approximately €260,000-280,000 (depending on deductions), the €200,000 taxable income limit is typically exceeded. Couples where only one partner earns very well (e.g., €220,000 gross) may also be affected.
Taxable Income vs. Gross Income
Important: The limit refers to taxable income, not gross income. Taxable income is significantly lower because work-related expenses, special expenses, pension contributions, and extraordinary burdens are deducted. Typically, taxable income is 15-25% below gross income.
Planning Options
Although the income cap is strict, there are some legal planning options: Defer one-time payments — bonuses or special payments can potentially be shifted to another calendar year. Use occupational pension plans — pension contributions reduce taxable income. Maximize work-related expenses — document training, professional literature, and work equipment.
Transition Rule
For children born before April 1, 2025, the old limits still apply. For children from April 1, 2025, the new regulation applies. There is no hardship clause or transition period.
What If You're Not Eligible?
Even without Elterngeld, you're entitled to parental leave (unpaid time off). Check if your employer offers a voluntary supplement. Some employers offer sabbatical arrangements or parental leave supplements. Tax benefits through child allowances exist regardless of Elterngeld.