Starting a first job and having a child often happen at the same time. Then several questions arrive at once: how high is parental allowance (Elterngeld), when does parental leave (Elternzeit) start, how do I get a daycare place (Kita) and what changes for tax? This guide sorts out the main rules for graduates with a child.
Short answer: Parental allowance is 67 percent of your net income before the birth, at least 300 and at most 1,800 euros per month (section 2 BEEG, as of October 2026). Parental leave can be taken until the child’s third birthday, and up to 24 months of it until the eighth birthday. From the child’s first birthday there is a legal right to early childhood daycare (section 24 SGB VIII).
Key points at a glance
- Parental allowance depends on your net income before the birth. A first job can trigger it, because the minimum amount is 300 euros.
- Parental leave must be registered in time: at least seven weeks in advance up to the third birthday, and at least 13 weeks in advance for the later period (section 16 BEEG).
- Parental leave can be shared between both parents. Maternity protection periods count towards the mother’s parental leave.
- The legal right to a daycare place starts at the first birthday. The Länder and municipalities set different rules for fees.
- Child benefit (Kindergeld) is 259 euros per child and month in 2026 (section 66 EStG). Parental allowance is tax-free but counts towards the progression clause (Progressionsvorbehalt).
How high is parental allowance if I have just started work?
Parental allowance replaces income that falls away. The basis is your net income from employment before the birth. The benefit is 67 percent of it, capped at 1,800 euros per month. For very low income the rate rises, and the minimum of 300 euros applies even if you had no income before (section 2 BEEG).
Assumption: after starting work you earn 2,000 euros net per month. Parental allowance is then 67 percent of that, which is 1,340 euros per month. The parental allowance office checks how your income in the relevant period is made up, using payslips. If you have changed jobs recently, ask early.
How long can I take parental leave, and how do I register it?
Parental leave is the right to be released from work without pay, while parental allowance covers the financial side. Each child creates its own entitlement. Leave lasts until the child’s third birthday. Between the third and the eighth birthday up to 24 months are possible (section 15 BEEG). Registration follows section 16 BEEG and can be made in text form.
| Period of parental leave | Registration deadline | Note |
|---|---|---|
| Until the child’s third birthday | At least 7 weeks before the start | Text form is sufficient |
| Between the third and eighth birthday | At least 13 weeks before the start | Up to 24 months possible |
| Maternity protection before and after birth | Statutory protection, no registration needed | 6 weeks before and 8 weeks after birth (section 3 MuSchG) |
Maternity protection applies to employees regardless of whether they are starting a job. It begins six weeks before the expected date of birth and generally ends eight weeks after the birth. This period counts towards the mother’s parental leave (section 15 BEEG).
What are my rights to a daycare place?
From the completed first year of life, your child has a right to early childhood education in a daycare centre (Kita) or with a childminder. This right lasts until school starts (section 24 SGB VIII). For primary school children, a right to full-day care of eight hours per day applies from the 2026/2027 school year until the start of fifth grade (section 24 (4) SGB VIII).
The right is a right to a place, not a guaranteed place. The municipality, usually through the youth welfare office (Jugendamt), organises places. Fees vary by location and are often based on income. Ask the youth welfare office early and register at several facilities, because waiting times vary a lot.
What changes for tax and insurance?
Children affect several areas. Child benefit is paid regardless of your income. Child allowances enter the wage tax deduction through the electronic wage tax features (ELStAM). Your child is covered by family insurance in statutory health insurance if a parent is a member there and total income stays within the limit (section 10 SGB V).
| Benefit | Rule | Source (as of October 2026) |
|---|---|---|
| Child benefit | 259 euros per child and month (2026) | Section 66 EStG |
| Parental allowance | 67 percent of net income, at least 300 and at most 1,800 euros | Section 2 BEEG |
| Parental leave | Until the third birthday, plus up to 24 months until the eighth | Section 15 BEEG |
| Daycare entitlement | From the first birthday until school starts | Section 24 SGB VIII |
A child is generally covered by family insurance if one parent is a member of statutory health insurance. The child’s own income does not matter. If the other parent is not a fund member and has a higher income, an exception under section 10 SGB V applies. Your health insurance fund can clarify this before the birth.
Frequently asked questions
Can I work part-time during parental leave?
Yes. During parental leave you may work part-time within the limits of section 15 BEEG. Agree this with your employer early, because part-time work and parental allowance interact.
Do I get parental allowance if I am only in my first job?
Yes. Parental allowance depends on income before the birth, not on the length of your career. Even a short first job can count. For very low income the minimum of 300 euros applies (section 2 BEEG).
Who pays the daycare fees?
Municipalities and providers set the fees, often on a sliding scale by parental income. The rules differ between and within federal states. The responsible body is the youth welfare office of your city or district.
What happens to my child’s health insurance?
Whether your child is covered by family insurance depends on whether a parent is in statutory insurance and whether the conditions of section 10 SGB V are met. Your health insurance fund can confirm this, ideally before the birth.
Next steps
- Agree the timing and extent of your parental leave with your employer early.
- Register parental leave on time in text form: seven weeks before for the period up to the third birthday, 13 weeks before for the later period.
- Apply for parental allowance at the responsible office and attach your payslips.
- Register your child with the municipality or youth welfare office for a daycare place early.
Related guides
- BAföG Parental Allowance 2026: Amounts and Example
- Child Benefit First Training: Age Limit and Work Rules
- Family Insurance Income Comparison: When It Ends
- Student Family Insurance 2026: Income Limits and Age
Sources: Section 2 BEEG, parental allowance (retrieved October 2026, in German); Section 15 BEEG, parental leave (retrieved October 2026, in German); Section 16 BEEG, taking parental leave (retrieved October 2026, in German); Maternity Protection Act, section 3 (retrieved October 2026, in German); Section 24 SGB VIII, child daycare (retrieved October 2026, in German); Section 66 EStG, child benefit (retrieved October 2026, in German).
Last updated: October 2026. This guide is general information, not individual advice.
