CSU Proposes Modification to Parental Leave Policies
In a recent winter retreat on January 6th and 7th, the Christian Social Union (CSU) advocated for several family-friendly measures aimed at improving the lives of families in Germany. The proposed changes focus on parental leave, childcare support, tax deductions, benefit-sharing in marital splits, and pension reforms.
One of the key proposals is a potential increase in parental leave entitlement. If both parents take parental leave, the entitlement could increase from the current two months to a maximum of 16 months, with the limitation of a maximum of 12 months per parent remaining in place. To receive 16 months of parental allowance, parents would need to take, for example, six and ten months off.
The CSU is also pushing for a "parental leave bonus" to provide additional financial support for parents taking extended leave. The specific details of this bonus are not yet clear, but it is expected to offer extra incentives for parents to take parental leave.
Regarding childcare support, the CSU is proposing to raise the maximum amount for tax-deductible childcare costs from the current 4,000 euros to 6,000 euros. This change would particularly benefit single parents, as the tax relief amount for the first child is €4,260, and an additional €240 for each additional child as of 2025.
To further assist families, the CSU is advocating for making contributions for childcare costs fully tax-deductible. This change would help families save on their tax bills and ease the financial burden of childcare expenses.
The CSU is also reiterating its demand for a "pension starter kit" for every child, with the state contributing 100 euros per month into a generation pension fund for each child from birth to the age of 18. This proposal aims to ensure that every child has a strong financial foundation for their future retirement.
In addition, the CSU is calling for the limits and maximum funding amounts for the employee savings allowance to be doubled. Currently, employees with an income of up to 17,900 euros (building society contracts) or 20,000 euros (stock savings plans) benefit from the employee savings allowance.
The CSU is also advocating for a "benefit-sharing" in the marital split, considering tax advantages for both partners. This proposal aims to ensure that both partners are treated fairly in the event of a divorce or separation, particularly regarding tax considerations and pension rights.
Although the exact details of some proposals, such as the parental leave bonus and pension reforms, are not yet clear, the CSU's proposals demonstrate a commitment to supporting families in Germany. These proposals, if implemented, would provide significant benefits to families, particularly those with young children, and help to ease the financial burden of childcare and pension planning.
[1] Source: https://www.bundesfinanzministerium.de/Content/DE/Steuern/Steuerliche-Begleitmaßnahmen/Kind-und-Eltern/Betreuung-von-Kindern/Betreuung-von-Kindern-unter-Beruf.html [2] Source: https://www.bundesfinanzministerium.de/Content/DE/Steuern/Steuerliche-Begleitmaßnahmen/Kind-und-Eltern/Kind-und-Eltern-Steuerliche-Begleitmaßnahmen.html
- The CSU's proposal for a potential increase in parental leave entitlement is aimed at encouraging both parents to take leave, offering a maximum of 16 months with the current limits still in place.
- To assist parents financially during extended leave, the CSU is advocating for a "parental leave bonus," although the specific details are yet to be defined.
- In terms of childcare support, the CSU is pushing for an increase in the maximum tax-deductible childcare costs from 4,000 euros to 6,000 euros, particularly benefiting single parents.
- To further help families, the CSU is advocating for making childcare costs fully tax-deductible and increasing the limits for the employee savings allowance, potentially benefiting more employees in building society contracts and stock savings plans.
