Germany to start paying out €300 coronavirus 'Kinderbonus' in three weeks
Families in Germany are to receive the first instalment of a one-off payment – the 'Kinderbonus' – on September 7th.
The planned Kinderbonus of €300 per child is to be transferred in two instalments.
The first €200 will be transferred alongside child benefit (Kindergeld) from September 7th. A further €100 will be paid to families in October, the Finance Ministry said.
Originally, the government had planned to transfer the cash in two €150 instalments.
The date the money will reach bank accounts depends on the final digit of your child benefit number.
If the number ends in a zero you will receive the first instalment on September 7th. Those with higher numbers (from 1-9) will gradually receive the transfer throughout the month.
In total, there are about 18 million children and young people in Germany who are entitled to child benefit and, therefore, the Kinderbonus.
Explained: How does Germany's Kinderbonus coronavirus payment work?
"This is a welcome financial injection for many families," Family Minister Franziska Giffey, of the Social Democrats (SPD) told the Funke Group newspapers.
The Kinderbonus is part of a €130 billion economic stimulus package aimed at kick-starting the economy and supporting people in Germany.
The move is particularly aimed at families struggling to make ends meet through the crisis.
"The Kinderbonus makes the decision to buy something for children or doing something together a little easier," said Giffey. It's also hoped it will boost the hard-hit economy in the short-term.
The payment is viewed as a thank you to parents who had to take over the teaching and care of their children when schools and kindergartens closed to stem the spread of Covid-19.
The federal government has estimated the cost of the bonus at around €4.3 billion.
Families with small and medium incomes are to benefit, as the payment will not be offset against other family or social benefits.
In the case of tax, however, the bonus payment will be offset against child tax credits, so that high incomes will not benefit from the special one-off payment.
READ ALSO: How Germany's new multibillion aid package will benefit you
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The planned Kinderbonus of €300 per child is to be transferred in two instalments.
The first €200 will be transferred alongside child benefit (Kindergeld) from September 7th. A further €100 will be paid to families in October, the Finance Ministry said.
Originally, the government had planned to transfer the cash in two €150 instalments.
The date the money will reach bank accounts depends on the final digit of your child benefit number.
If the number ends in a zero you will receive the first instalment on September 7th. Those with higher numbers (from 1-9) will gradually receive the transfer throughout the month.
In total, there are about 18 million children and young people in Germany who are entitled to child benefit and, therefore, the Kinderbonus.
Explained: How does Germany's Kinderbonus coronavirus payment work?
"This is a welcome financial injection for many families," Family Minister Franziska Giffey, of the Social Democrats (SPD) told the Funke Group newspapers.
The Kinderbonus is part of a €130 billion economic stimulus package aimed at kick-starting the economy and supporting people in Germany.
The move is particularly aimed at families struggling to make ends meet through the crisis.
"The Kinderbonus makes the decision to buy something for children or doing something together a little easier," said Giffey. It's also hoped it will boost the hard-hit economy in the short-term.
The payment is viewed as a thank you to parents who had to take over the teaching and care of their children when schools and kindergartens closed to stem the spread of Covid-19.
The federal government has estimated the cost of the bonus at around €4.3 billion.
Families with small and medium incomes are to benefit, as the payment will not be offset against other family or social benefits.
In the case of tax, however, the bonus payment will be offset against child tax credits, so that high incomes will not benefit from the special one-off payment.
READ ALSO: How Germany's new multibillion aid package will benefit you
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