Germany
Parental allowance
Impact date: 1 April 2025 The income threshold above which parents are no longer entitled to parental allowance has been set at:
- €200,000 taxable income for couples and single parents for births from 1 April 2024
- €175,000 taxable income for births from 1 April 2025
For births from 1 September 2021, up to and including 31 March 2024, the income limit was €300,000 for couples and €250,000 for single parents.
Employer implications/action needed In assessing the thresholds, the taxable income in the calendar year before the child was born is considered.
Coalition agreement
Impact date: N/A On 5 May 2025 representatives of the German parties CDU, CSU, and SPD signed the coalition agreement for the upcoming legislative period. The agreement contains several commitments which are likely to be of particular interest to employers in Germany:
- Increase in the minimum wage (the coalition partners consider a minimum wage of €15 per hour in 2026 as reasonable)
- Federal contracts above a certain value may only be awarded to companies that pay their employees in compliance with the applicable collective agreements for the respective industry
- Working Time: In line with the European Working Time Directive, the option of a weekly instead of a daily maximum working time will be created. In addition, the obligation to record working hours (electronically) will be implemented into the Working Time Act, in accordance with jurisdiction of the European Court of Justice
- The possibility of online works council meetings and online works meetings have been mentioned, as well as the option of electing the works council online
- Form requirements (in particular for fixed term contracts) will be reduced
Employer implications/action needed N/A
Employer risk N/A
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