Financial assistance for families with children during Corona times

Problems Due to Corona

The corona crisis has a significant impact on families in Germany. Families with children, in particular, continue to be under increased pressure, as many daycare centers and childcare facilities remain closed or can only offer emergency care.

This situation is very stressful for parents and children, as many working parents have to take care of their children's care themselves, requiring a special working hours arrangement with their employers.

Since this also entails financial losses for families, the federal government has introduced new regulations to support families with children during the corona crisis. famPLUS presents the key points:

Child bonus

Families receive a 300 Euro child bonus for each child for whom they receive child benefits. This benefit is intended to give families financial leeway and lessen the burdens of the Corona pandemic. The child bonus is not offset against basic security and primarily strengthens families with low and medium incomes. High earners with one child and a taxable annual income of around 86,000 Euros (90,000 Euros with two children) do not benefit from the child bonus, as it is offset against the tax-free child allowance. The child bonus is paid out in two installments of 150 Euros each in September and October together with the child benefits. No application is necessary. The split is intended to prevent possible maintenance claims from being endangered. Further information can be found here.

Adjusted Regulations for Parental Allowance

Parents in system-relevant professions are urgently needed at their workplaces and have to work more than planned. Others are on short-time work or have been released. To ensure that families do not face disadvantages regarding parental allowance during the Corona pandemic, the federal government has introduced three new Regulations decided:

• Parents in essential professions can postpone their parental allowance months. These can also be taken after their child's 14th month of life, but no later than June 2021. The months taken later do not reduce the amount of parental allowance for a subsequent child.
• The partnership bonus does not lapse if parents work more or less than planned due to the COVID-19 pandemic.
• Earnings replacement benefits such as short-time allowance do not reduce the amount of parental allowance. Expectant parents can exclude the months in which they received earnings replacement benefits from the parental allowance calculation.

450-euro limit in a mini-job

Many parents have their children cared for as part of a mini-job (up to 450 euros per month). Since many childcare facilities can still only offer emergency services, parents increasingly have to rely on mini-job workers, which quickly reaches the 450-euro limit.

From March to October 2020 inclusive, this income limit may be exceeded, and childcare can possibly continue as a short-term, social security-free mini-job. The amount of earnings does not matter. The conditions for exceeding the income limit are that the higher earnings occasionally and unpredictable is. These conditions have been met due to the COVID-19 pandemic. As occasionally was previously considered to be a period of up to three months within a calendar year. This period is now being extended to five months.

You can find more information about the minijob during the Corona period. here.

Further action required

These measures are intended to relieve families financially and help them through this difficult time. However, the federal government is still challenged, as there is still no perspective for the reliable care and support of their children. Further measures from the Chancellor and the Health Ministers are awaited to counteract the economic, health, and social consequences for children and parents.

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