Starting January 1, 2025, parents in Germany will see their monthly child benefit (Kindergeld) increase, allowing families to receive more support amid rising living costs. The monthly payment per child will rise by €5, bringing the total to €255.
This increase reflects the German government's commitment to easing financial burdens on families, particularly those with multiple children. Notably, family households will receive €510 for two children and €765 for three. This adjustment is part of the Fiscal Development Law aimed at improving family finances during inflationary pressures.
According to the Federal Ministry of Finance, the €5 increase will amount to approximately €790 million annually for the state. Plans to raise child benefits to €259 per month by 2026 have also been discussed, which would incur additional expenses of around €635 million.
Significantly, the Kinderfreibetrag (child allowance) will also see enhancements. From January 2025, this allowance increases by €192, totaling €9,600 per child, covering education and care costs. For financially weaker families, the emergency surcharge (Sofortzuschlag) will rise from €20 to €25 per month, targeting those who receive benefits under social security laws.
For parents, acknowledging the payment schedule is key, as Kindergeld disbursement will still depend on the last digit of their Kindergeld number. The German Employment Agency has released staggered payment dates for January. For example, families with numbers ending in 0 and 1 will receive their payments on January 8, whereas those with 9 will have to wait until January 23.
The new adjustments will help families navigate the challenges sparked by inflation and cost-of-living increases. Nevertheless, application procedures remain consistent — parents must submit written requests to the family benefits office to receive their Kinder-geld. This can be retroactively applied for up to six months.
Despite these enhancements, the anticipated introduction of the Kindergrundsicherung (child basic security) has been stalled. The ambitious project intended to merge various family benefits and was initially promised for 2025, but has been postponed, following information from the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth.
For many families, the stability provided by Kindergeld is a significant aid. The Institute of German Economy has projected, surprisingly, many families might feel less financially secure overall. Still, the planned child benefit increases aim to alleviate immediate pressures for those struggling.
Parents should remain informed about the specific details surrounding Kinder-geld applications and payment schedules to maximize benefits for their family.