The payment to families will arrive in May, according to a draft of the financial aid law, viewed by Handelsblatt newspaper.
“For every child that is entitled to child benefit in May 2021, a one-time payment of €150 will be paid out in May 2021,” the draft law states.
The cost of the Kinderbonus to the federal government will come to roughly €2.1 billion.
Last year parents received a payment of €300 per child in two instalments, as the state tried to kick start consumer spending after the first lockdown.
(article continues below)
See also on The Local:
Families with small and medium incomes are to benefit, as the payment will not be offset against other family or social benefits – but it will be offset against parents who receive tax relief (Kinderfreibetrag).
The grand coalition – made up of Angela Merkel's Christian Democrats, the CDU's Bavarian sister party the Christian Social Union and the Social Democrats – agreed last Wednesday to provide billions in support for families, low-income earners, businesses, plus the hospitality and culture industries.
“We have achieved a lot for families, for people with a difficult income situation, but also for tradespeople and the catering industry,” said SPD co-leader Norbert Walter-Borjans.
The most important thing is for Germany to offer “a bit of help” to people who had come under pressure during the tough shutdown, he added.