Child sickness benefit: Impact on parents' finances and possible reforms

Child sickness benefit: Impact on parents' finances and possible reforms

According to a report by www.mdr.de, there are currently discussions in Germany regarding child sickness benefit. Parents are currently entitled to 30 working days of sick pay until their children turn 12. This eligibility period was extended during the pandemic but expires at the end of the year. There is a risk of cuts again from 2024, which could pose problems for parents, especially if their teenagers are sick and need care.

According to the law, working parents are entitled to sick pay for children up to the age of twelve under statutory health insurance (GKV). During the Corona pandemic, the maximum entitlement period for a child was increased to 30 working days, which will soon expire. Children aged 12 and over are not entitled to sick pay, which could lead to parents losing wages. Child sickness benefit usually amounts to 90 percent of net wages and parents must meet additional requirements.

A reform of child sickness benefits is being called for by various political parties and trade unions. The Left and the Greens in the Bundestag have made proposals for reforms, such as unlimited leave until recovery and increasing the age limit from twelve to 14 years. Trade unions support an expansion of the right to time off and continued payment of wages. However, improvements have so far failed due to the financing issue. The statutory health insurance companies point out that an expansion of benefits would require correspondingly more contributions from the federal government in order to avoid burdens on those paying contributions.

These discussions about a possible reform of child sickness benefits could have an impact on the labor market and the financial situation of families. If parents do not have support, their children's prolonged illness could lead to financial strain and loss of wages. This could also make the job market less attractive for parents, especially single parents. An expansion of child sickness benefit would mean more financial support for families, but also higher burdens for the state and statutory health insurance companies. This could lead to a political debate about family policy and healthcare financing.