Accounts credited with 100 euros: families receive significant additional funds
In a significant move to support families, the German government has implemented a new maternity pension reform that promises to increase the value of a pension point to 40.79 euros. This reform, effective since July, is set to benefit many families across the country.
The extra payment, related to the maternity pension and not a general family benefit, could amount to up to 100 euros annually for families who have raised two children. To be eligible, the child must have lived in the caregiver's household.
Grandparents, fathers, or foster parents can also receive this extra payment, as long as they can provide proof that they took care of the child during the specified period. The extra payment is given in addition to the regular pension and is usually made automatically for those already receiving a pension.
This reform is not a one-time event. In fact, the German Pension Insurance has hinted at another extra pension payment in 2028. However, specific details about this planned additional maternity pension for 2027 are not yet available.
It's important to note that this reform applies only to individuals born before 1992. Some new pensioners in 2027 or 2028 may have to apply for this service again, requiring proof of child-rearing time to the pension insurance via an application.
The maternity pension has been improved three times, in 2014, 2019, and 2021, reflecting a continuous effort to recognise and financially support child-rearing periods. The coalition plans to recognise at least three years of child-rearing time for mothers in the pension system in 2027, which could result in an additional 122 euros per child.
Beyond the maternity pension, recent pension reforms in Germany also include doubling the additional service period credited per child for pension calculations and introducing an annual pension supplement (a "13th pension") for all pensioners, regardless of pension amount. These reforms also feature better pension adjustment formulas and support older workers continuing in employment with pension benefits partially paid.
The government is also reviewing parental leave, with some related changes expected between 2026 and 2027. These include new or improved rights to paternity leave, unpaid parental leave, and protections against dismissal during or shortly after family leave. However, these mainly concern parental leave rights rather than maternity pension supplements.
As discussions on family benefits and maternity-related pensions continue to evolve, it's clear that the German government is committed to supporting families and recognising the value of child-rearing periods. Stay tuned for further updates on this and other family-friendly policies.
The economic and social policy reform in Germany has introduced an extra maternity pension payment, linked to personal-finance and business aspects, which could provide families up to 100 euros annually. This additional payment is expected to expand in 2027, as the German Pension Insurance plans an extra maternity pension, potentially bringing an additional 122 euros per child.
