Parental allowance - a first look back

^{Destatis, 28 October 2008}

On 1 January 2007, the former child-rearing benefit was replaced by parental allowance, which parents receive as a family policy benefit when a child is born. Regarding the year 2007, first conclusions can be drawn as to the number of mothers and fathers who received parental allowance for their children born in that year, the amounts of allowance paid and the period during which it was received.

Parental allowance is also attractive to fathers

Shares of children whose fathers receive parental allowance

Between January 2007 and June 2008, a total of 752,000 applications for parental allowance were granted for children born in 2007. A share of 103,000 applications were submitted by fathers (14%) and 649,000 by mothers (86%). In the end, the share of fathers in the total of recipients of child-rearing benefits, which were paid until the end of 2006, was only slightly above 3%. Of the approximately 103,000 applications for parental allowance that were submitted by fathers in the country as a whole, about 2,500 were granted for multiple births with a total of 5,200 children. Hence the total of newborn babies for whom fathers received parental allowance amounted to about 106,000. Related to the total of 685,000 children born in 2007, this was a proportion of 15%. While the relevant proportions of fathers were above the federal average in Berlin and Bavaria (19% each), their share amounted to not more than 7% in the Saarland.

Fathers claim increasingly what are called "partner months"

he share of fathers in the applications granted has increased continuously. While in the first quarter of 2007, not more than 7% of the applications granted were those of fathers, their proportion rose to 12% between January 2007 and March 2008. A reason may be the fact that fathers claimed “partner months” only towards the end of the first 14 months of the life of a child.
Nearly each mother (about 625,000 or 96%) received parental allowance directly after the birth of the child. As regards fathers, 29% (30,000) of them received that allowance directly after the birth of the children, while every fourth father (about 25,000 or 24%) planned to take time off to care for the child from the twelfth month of life.

Mothers plan longer periods of receiving parental allowance

Presumable period

More than three quarters (575,000 or 77%) of all recipients of parental allowance planned to receive the allowance for a period of twelve months, while every tenth recipient (74,000) decided to receive that allowance for a period of two months. Here, too, significant differences became apparent between mothers and fathers. While about 562,000 mothers (87%) intended to claim parental allowance for a period of twelve months, the relevant share of fathers was only 13,000 (13%). The majority of fathers decided to claim parental allowance for two months (approximately 67,000 or 65%). As regards mothers, however, only 1% of them (7,000) took a parental leave of two months. The proportion of fathers who applied for a two-month parental allowance was particularly high in Bavaria (74%) where, on the other hand, 8% planned to receive that allowance for a period of twelve months. The proportion of fathers who received parental allowance for 12 months was biggest in Bremen (24%).

The majority of parents were employed before the birth of their children

More than half of the mothers (53% or 342,000) who were granted parental allowance for their children born in 2007 had been employed before the child was born. The relevant proportion of fathers amounted to 78% (81,000). The number of mothers who had been employed before the birth of their children was higher in eastern Germany (58%) than in western Germany (52%). As far as fathers in eastern and western Germany were concerned, their proportions were almost the same (78% and 79%, respectively). The biggest share of fathers who had been employed before the birth of their children and received parental allowance during the reference period was recorded in Bavaria (86%). In Berlin (69%) and Bremen (68%), however, the relevant shares were considerably smaller.
A total of 69% (56,000) of the fathers who had been employed before their children were born received parental allowance for a period of two months, while only 9% (7,200) of them received the allowance over a period of twelve months.
Compared to that, 85% (290,000 of 342,000) of the mothers who had been employed before giving birth to a child claimed parental allowance for a period of 12 months. The proportion of mothers who had been employed and received that allowance for two months amounted to 1% (2,400 mothers). In Bremen, slightly more than half of the fathers employed (54%) claimed parental allowance for two months and 17% for 12 months. Compared to that, three quarters of the fathers in Bavaria (13,000 of 17,000 or 75%) who had been employed before the birth of their children received parental allowance for two months and 7% (1,200 of 17,000) for a period of 12 months.

Parental allowance amounts to EUR 300 for nearly one third of the parents

All in all, 399,000 (53%) of the approximately 752,000 mothers and fathers who, between January 2007 and June 2008, were granted parental allowance for their children born in 2007 received that allowance on the basis of income compensation. The latter is generally paid to mothers and fathers who worked before the birth of their children. It also includes benefits that are paid in cases of reduced income, for instance, due to part-time work or as a low-earnings supplement. 50,000 mothers and fathers (6,5% of all parental allowance recipients) received an allowance for siblings and/or multiples in addition to the income compensation. The allowance for siblings amounts to 10% of the parental allowance - at least to EUR 75, while the allowance for multiples amounts to EUR 300 for the second and each of the following children.
A total of 353,000 mothers and fathers (47%) received parental allowance on the basis of the minimum amount. A share of about 230,000 of them (31% of all parental allowance recipients) were provided with an absolute minimum of EUR 300, while approximately 123,000 mothers and fathers (16%) received an additional allowance for siblings and/or multiples. The minimum parental allowance is usually paid to mothers and fathers who did not work before the birth of their children. This was true for 93% of the mothers and fathers who received parental allowance on the basis of the minimum amount. The remaining 7% of them had been employed before their children were born. Their parental allowance was set at the minimum amount because their income compensation was smaller than EUR 300.
The proportions of fathers and mothers who received parental allowance on the basis of income compensation were largest in Bavaria (60%), Brandenburg and Saxony (59% each). The smallest shares were recorded in Bremen (42%), North-Rhine-Westphalia (48%) and Lower Saxony (49%).
Hence in Bremen (58%), North-Rhine-Westphalia (52%) and Lower Saxony (51%), more than every second person concerned received parental allowance based on the minimum amount. The smallest proportions were recorded in Bavaria (40%) and in Brandenburg and Saxony (41% each).

Fathers receive higher amounts of parental allowance

Average amount of parental allowance

The average amount of parental allowance paid during the reference period was EUR 643. While fathers received an average EUR 973 per month, mothers were provided with a monthly average of EUR 590.
A regional comparison revealed significant differences in the average amounts of parental allowance which fathers were expecially entitled to. While in the former territory of the Federal Republic of Germany, the average parental allowance granted to fathers amounted to EUR 1,023 Euro, it was EUR 795 in the new Länder. As regards mothers, the differences between eastern Germany (EUR 566) and western Germany (EUR 594) were by far smaller. Mothers and fathers in Bavaria (EUR 634 and 1,147, respectively), Hesse (EUR 619 and 1,062, respectively) and Hamburg (EUR 657 and 1,038, respectively) received the highest average amounts of parental allowance. The lowest average amounts were paid to mothers and fathers in Saxony-Anhalt (EUR 537 and 749, respectively), Saxony (EUR 571 and 794, respectively) and Mecklenburg-Western Pomerania (EUR 549 and 798, respectively).

Authors:
Annica Böttcher, Sascha Krieger – Federal Statistical Office

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