Family Benefits : Germany

Since 1996, families have been able to choose between receiving a child benefit or a tax-free child allowance. The monthly child benefit for the first and second child is DM220 each; the monthly benefit for the third child is DM300 and DM350 for each additional child. The tax-free child allowance was DM6,912 in 1997. Since 1986, moreover, mothers and fathers have been entitled to a child-raising benefit for each child of DM 600 per month for a period of 24 months, provided their income does not exceed a certain amount. In addition, mothers or fathers wishing to look after their child themselves can claim up to three years child-raising leave from work during which they cannot be dismissed.