According to sources quoted by Bild newspaper, the federal family ministry is considering raising the money families receive by €10 a month this year and a further €10 in 2016 for a total increase of €20 per child per month by the end of next year.
The governing coalition of Angela Merkel's Christian Democratic Party and partners Social Democrats agreed to give more money due to an increase in the living wage, the indicator that determines what poverty is.
A previous look at a rise in the so-called Kindergeld showed that raising the amount by €5 a month would cost the state €1 billlion a year.
Parents receive €184 per month per child. A third child would have parents receiving €190 per month for the third child and a fourth receives €215 per month.
Tax credits for children are also included in the discussion, with a potential rise from €4,368 to €4,608.
EXPECTING IN GERMANY? SEE ALSO: Babyeucracy: Paperwork for payouts