Wednesday 16 January 2013

Thank you, Frau Merkel


I am due to give birth to my second child at any moment now, so it seems like an appropriate time to 1. Blog while I still have the time and 2. Thank Frau Merkel for giving me some (paid) time off work in order to look after my newborn.

Since coming to power, Merkel has been focused on Germany’s low birth rate, which stands at 1.3 children per woman (the replacement rate should ideally be 2.1). Figures show that a third of German women are not having children and among graduates the figure is as high as 40% (Merkel herself included!) Perhaps this is due to the fact that University in Germany takes so long to complete – the average German student is in their late twenties by the time they finish, so finding a job and establishing a career take priority. Also, German society still very much expects women to stay at home to look after their family. Housewives get medical insurance through their working husbands and husbands, in turn, enjoy tax advantages for having wives without jobs. Childcare is inadequate and expensive. There is even a term in German for those bad, uncaring mums who selfishly return to work – “Rabenmutter” (raven mother).

In Germany, the allowances for maternity and parental leave are fantastic. The monetary benefits are good, but not really much different to other countries if you consider that we pay around 48% tax and expect some return on our money. The best thing is the time and the protection you are given. Where else can you take up to 3 years off to look after your child (as a mother OR a father) and still be guaranteed a job to come back to?

Every woman is basically entitled to 6 weeks before the birth and 8 weeks after the birth on full pay (the so-called “Mutterschutz” maternity leave). After that, mothers and fathers can take 14 months PAID “Elternzeit” (parental leave) and choose how to split the months between them. During this time, you receive 65% of your basic net salary, but no more than 1800 Euros in total (the so-called "Elterngeld"). Even if you haven’t been working, you are still entitled to at least 300 Euros pay during the first 14 months. In total, mothers and fathers can take up to 3 years UNPAID parental leave and can even split the parental leave period into two – deferring one year of time up until the child’s sixth birthday. The flexibility is amazing, particularly for fathers.  

And I’m still not finished…

If you have two children under the age of three, you are paid a “Geschwisterbonus” (sibling bonus) of 150 Euros net a month. Every child is also paid 180 Euros “Kindergeld” (child benefit) until the age of 18, regardless of income.

Are there any catches? Not really. Just be sure to get all the relevant paperwork filled out on time – there are separate forms for everything and they take time and patience to fill out. Also, beware that the Elterngeld (14 months pay) counts as household income and the tax man will catch up with you at the end of the year!

Despite all this time and money being thrown at young families, Merkel's measures paradoxically haven't had much effect on the birth rate and have simply cost the government millions. There is now talk of scrapping the parental leave. But, luckily this won’t affect me and so, vielen Dank, Frau Merkel, for what is my second round of German maternity/parental leave!

1 comment:

  1. you should thank Frau Ursula von der Layen. She´s the one who created the Elternzeit...

    ReplyDelete