Self-employed parents are also entitled to parental allowance, but the calculation differs from that for employees. Instead of a gross salary, the profit counts, and taxes and social security contributions are deducted from it. This guide explains the steps with the statutory text, a worked example and the points that often raise questions when applying.
Short answer: For self-employed people, the income results from the average monthly profit minus the deductions for taxes and social security contributions under section 2d BEEG (in German). Basic parental allowance lies between at least 300 and at most 1,800 euros per month under section 2 BEEG (in German). The profit is usually taken from the income tax assessment (statute retrieved 2026, flyer November 2025).
The most important points at a glance
- For the self-employed, profit counts, not turnover.
- Taxes and social security contributions are deducted from the profit before the income for parental allowance is fixed.
- The income tax assessment usually sets the profit. If it is missing, substitute rules apply.
- The minimum and maximum amounts of basic parental allowance also apply to the self-employed.
- Anyone who runs the calculation early sees whether fluctuating profits change the result.
How is the income of self-employed people determined?
Under section 2d(1) BEEG (in German), the decisive figure is the monthly average of the positive profit income to be taken into account. This includes income from agriculture and forestry, from trade and from self-employed work. The deductions for taxes and social security contributions are subtracted from this sum, and the result is the income from self-employment.
Under section 2d(2) BEEG (in German), the profits are taken from the income tax assessment issued for the assessment period. If no such assessment exists, the profit income is determined in substitution under the rule of subsection 3. Which documents the parental allowance office requires in the individual case is asked there.
Which steps belong to the calculation?
| Step | What is determined | Basis |
|---|---|---|
| 1. Profit | Average monthly profit in the assessment period | Section 2d(1) BEEG |
| 2. Deductions | Taxes and social security contributions attributable to the profit | Section 2d(1) BEEG, sections 2e and 2f |
| 3. Income | Profit minus the deductions | Section 2d(1) BEEG |
| 4. Parental allowance | Standard rate of 65 percent of income, limited to the statutory range | Flyer as of November 2025, section 2 BEEG |
The table shows the order of the calculation. The decisive point is the third step, because there the income stands to which the rate applies. Anyone who sets the deductions too low overestimates the parental allowance and risks a correction in the notice.
A worked example with the maximum amount
Assumption: The average monthly profit is 4,000 euros. The deductions for taxes and social security contributions are assumed to be 1,200 euros per month. The income is therefore 2,800 euros. The standard rate of 65 percent gives 1,820 euros. This amount exceeds the maximum of 1,800 euros, so in this model 1,800 euros per month would be paid.
The example shows that a high income does not lead to unlimited parental allowance. The ceiling applies, and for self-employed people with high profits it is often the decisive point. The responsible parental allowance office sets the actual calculation.
Why fluctuating profits complicate planning
Many self-employed people have years with very different profits. Because the assessment period lies before the birth, one weak year can substantially determine the result. The figures should therefore not be derived from the last year alone. An overview of several years helps you see the range of possible parental allowance.
Anyone who makes investments or deliberately shifts profits shortly before the birth changes the basis of the calculation. This is not automatically inadmissible in law, but it should be coordinated with tax advice, because the effects can run in both directions.
Which evidence does the parental allowance office need?
For the self-employed, the parental allowance office checks profits more closely than for employees, because there is no payslip. The documents should prove the profit and the deductions. Which documents are sufficient in the individual case is communicated by the office, and a query before the application often saves time.
- Income tax assessments for the years relevant to the calculation
- Profit determination, such as a surplus of receipts over expenses or a balance sheet
- Evidence of social security contributions, such as the contribution notices of health and pension insurance
- Receipts for business expenses, where they affect the profit
- Details of the periods of self-employment and of changes in the business
A clean profit determination saves queries. If you changed the business or the legal form in the year before the birth, explain this in a short letter so the office can place the figures correctly. For newly founded businesses such an explanation is particularly helpful.
How does parental leave affect self-employment?
If you continue to work during parental leave, you must observe the limits the law sets for parental leave. Whether and how much income alongside it affects the parental allowance is checked by the parental allowance office on the basis of the activity and the chosen model. The question should be clarified before the application, because details are difficult to correct later.
Frequently asked questions
Do self-employed people receive parental allowance if they make little profit?
The entitlement depends on the general requirements, not only on the amount of profit. If the income is low, the statutory minimum of 300 euros per month applies to basic parental allowance. The parental allowance office checks on the basis of the documents whether all requirements are met.
What happens if there is no tax assessment?
If no income tax assessment has to be prepared or none exists, the profit income is determined under section 2d(2) BEEG (in German) in corresponding application of subsection 3. This can happen particularly with newly founded businesses. The parental allowance office explains the route in the individual case.
Does the 65 percent figure from the flyer always apply?
No, it is the usual rule that the Federal Ministry names in its overview. The actual calculation follows the law and the evidence. The flyer also gives no separate rules for the self-employed, so for this group the statutory text applies.
Where can the figures be checked in advance?
The non-binding federal parental allowance calculator helps with a first estimate. The responsible parental allowance office provides the binding information. If your profit history is complex, coordinate the calculation with a tax adviser as well.
What you should do now
- Collect the income tax assessments of recent years and the profit determinations.
- Calculate the income under section 2d BEEG (in German) with realistic deductions.
- Submit the application to the responsible parental allowance office and enclose the evidence.
- Check the notice as soon as it arrives and clarify differences early.
Related articles
- Family, Partnership and Money: The overview for young adults
- Parental allowance reform 2027: what the draft says and what is open
- Parental months for fathers and partners
- Newborn: The first financial steps after the birth
- Family planning and finances: what couples should settle
Sources: Section 2d BEEG, income from self-employment (German), legal text, Section 2 BEEG, amount of parental allowance (German), legal text, The federal parental allowance at a glance, flyer of the BMBFSFJ (German), as of November 2025.
Last updated: November 2026. This guide is general information, not individual advice.
