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How does the new parental allowance regulation affect families' financial planning?
According to a report from www.mdr.de, the Federal Ministry for Family Affairs has decided that the parental allowance months can no longer be flexibly distributed among the parents from April 1, 2024. This means that parents can no longer care for the child at the same time in order to receive parental allowance. The new regulation is intended to promote a long-term partnership-based division of care work and employment for both parents in order to achieve greater equality. This new regulation has various effects. According to the report, from April 2024 parents will only be able to receive parental allowance for one month at a time. The other parent would have to look after the child alone for at least a month in order to...
How does the new parental allowance regulation affect families' financial planning?
According to a report by www.mdr.de, the Federal Ministry for Family Affairs has decided that the parental allowance months can no longer be flexibly distributed among the parents from April 1, 2024. This means that parents can no longer care for the child at the same time in order to receive parental allowance. The new regulation is intended to promote a long-term partnership-based division of care work and employment for both parents in order to achieve greater equality.
This new regulation has various effects. According to the report, from April 2024 parents will only be able to receive parental allowance for one month at a time. The other parent would therefore have to look after the child alone for at least a month in order to benefit from the full 14 months of parental allowance. The regulation could have both positive and negative effects. On the one hand, it could help fathers become more involved in the household and in parenting in the long term. On the other hand, some fear that this could lead to mothers taking the maximum twelve months of parental allowance, as fathers may have to work longer.
The new regulation could also have economic effects. Some family associations suspect that the state wants to save money with the new regulation, as more complicated applications could lead fewer people to apply for parental allowance. In addition, fathers could waive a month if they have to look after the child alone during that time. The income limit for entitlement to parental allowance will also be reduced, which could have financial consequences for families.
It remains to be seen how the new regulation will affect the market and the financial industry. Families may find alternative ways to make parental allowance months more flexible, and financial professionals will need to monitor the changes closely to consider any potential impact on families' financial planning.
Read the source article at www.mdr.de