With the collapse of the previous 'traffic light' coalition government, comprising the Social Democrats (SPD), Greens and Free Democrats (FDP) back in November, some changes for this year were up in the air.
Now there is a bit more clarity after the Bundestag passed some tax and benefit laws. Ahead of the election in February 2025, here's a look at the changes families can expect so far in 2025.
Child benefits increased
Child benefit (Kindergeld) has been adjusted for 2025, with parents receiving €255 per month per child from January 1st. It is planned to go up by a further €4 to €259 in 2026.The Kinderzuschlag, or the child supplement allowance - an extra benefit for low-income families - has gone up from €20 to €25 per month.
Tax allowance changes
The tax allowance for parents - Kinderfreibetrag - has been increased by €30 to €3,336 per parent for 2025. Together with the allowance for care and upbringing or education needs (€1,464), this results in an increase in the amount used to exempt the minimum subsistence level for children from tax to a total of €4,800 per parent or €9,600 per child.
READ ALSO: What's on the agenda for Germany in 2025?
General tax changes
German parliament - and the Bundesrat - in December approved a number of tax relief measures put together by the coalition.
Among them is a higher basic tax-free allowance aimed at stopping inflation eating up wage increases. From January 2025, the tax-free allowance rose by €312 to €12,096. In 2026 it will rise again to €12,348.
Child maintenance payments change
The 'Dusseldorf table', which sets out calculations for child maintenance payments if parents live apart, has also been adjusted.
From January, the minimum maintenance for underage children up to their 6th birthday is €2 more than before, making it €482.
Meanwhile, there is a significant increase in the maintenance rate for students who do not live with their parents or only live with one parent. It will rise by €60 to €990 per month.
Parental allowance
New rules apply to parental allowance or Elterngeld for babies born from April 1st 2025.
After this date only couples and single parents with an annual taxable income of no more than €175,000 per year will receive parental allowance. Previously, the limit was €200,000.
READ ALSO: 'A horrible idea': How cuts to Elterngeld will affect families
Increased number of child sick days to remain in 2025
Working families in Germany will continue to get an increased entitlement to child sick pay.
Parents with statutory health insurance can receive sick pay compensation for 15 child sickness days per year and child, while single parents are entitled to 30 days.
If there are several children, the entitlement increases to 35 working days per parent per year. For single parents with several children, the total number increases to a total of 70 working days per year.
During the Covid pandemic, the number of child sick days was increased to help working parents deal with sickness in the family. This regulation expired in 2023, but was extended for 2024 and 2025.
READ ALSO: Germany to relax rules for working parents who need to care for a sick child
Surname rules change
From May 2025, the rules on surnames in Germany are set to be relaxed.
In future, married couples will be able to choose a double name as their joint married name, which combines the surnames of both partners, and without a hyphen if they wish. Children can also be given double names, regardless of whether the parents have a double name. As things stand, the situation around surnames can be complicated.
READ ALSO: Why Germany is changing its complicated rules around double surnames
More financial support for carers
From the start of the year, those who care for someone or are cared for at home can expect additional financial support. The Care Support and Relief Act, PUEG for short, provides for an increase in care allowance, better benefits and more flexibility in the use of care and relief services.
This means that all care benefits have been increased by 4.5 percent. The care allowance will be up to €52 more per month than before, while care benefits will be up to €99 more. Meanwhile, the 'relief' amount will rise to €131 per month and there will be up to €91 more per month for full inpatient care.
READ ALSO: Everything that changes in Germany in January 2025
Paid paternity leave?
Fathers - and second parents - are set to get two weeks of paid paternity leave, or Vaterschaftsurlaub - but the law isn't in force yet in Germany.
The previous coalition government was meant to pass the law in the Bundestag in 2024 but it never reached parliament. And now with the planned change of government, things have been delayed yet again.
The framework has been set out by the EU in a directive but Germany is well behind schedule in implementing it.
According to experts, it is likely that regulations on paternity leave for employees will be passed in 2025 at the earliest.
Digital Pact 2.0 - is it really coming?
All schools have been earmarked to receive new funding for digital equipment and the expansion of the digital infrastructure.
Under the plans, every schoolchild would be entitled to a digital device, while teachers would have to complete mandatory digital training courses.
Whether the Digital Pact 2.0, which has been negotiated for several years, will actually materialise depends on whether the newly elected government implements it or not.
Basic child allowance (Kindergrundsicherung) not coming into force
Families may have been hearing a lot about the 'basic child allowance' scheme or Kindergrundsicherung.
However, due to the breakdown of the coalition government and not enough support to vote this through from other parties in the Bundestag, this project has been shelved.
The system was set to replace Kindergeld and would have see all families in Germany receive a basic €250 benefit per month per child, while those with a greater financial need would be granted additional benefits.
It would have bundled together several benefits that currently have to be applied for individually such as the emergency child supplement, child benefit and the citizen's allowance, causing more bureaucracy.
This would have made things easier for families and authorities.
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