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sabina

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I am a radio and online journalist based in Cologne, Germany. Whether it's art or business, politics or pop, I offer an American's perspective on Germany.

March 2008 Archives

Over 570,000 parents in Germany are taking advantage of the country's new childcare benefit program. So how does it work? Any mother or father whose child was born after January 1, 2007 can apply. It doesn't matter whether they're regular employees, self-employed or even unemployed, students, trainees and even adoptive parents. If one parent (usually the mother) decides to stay at home for 12 months, she will get 67 percent of her previous net salary for this period. If both parents want to take advantage of these benefits, they can be extended to 14 months -- so if the mother stays home for 12 months and the father for two months.

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It is also possible to work part-time during this time, up to 30 hours a week. The maximum amount you can receive, though, is 1,800 euros per month (approx. $2,700); the minimum is 300 euros. So for a top manager, it wouldn't be much compared to their regular monthly salary. But for middle-class moms and dads, it isn't bad. And it's tax-free! Interestingly enough, the share of fathers choosing to stay home has jumped from 3.5 percent to 12.4 percent in the first year. And the government, which is footing the bill for this program, expects the number of at-home daddies to increase even more.

The German government's attempts to boost the country's waning birthrate are yielding fruit. Last year, it introduced so-called Elterngeld or parent money. This childcare benefit program offers mothers and fathers up to 1,800 euros per month (approx. $2,700 - tax-free!) for up to 14 months if one or both of them stay home to take care of their baby.

With a birthrate of just 1.3 children per woman, Europe's biggest economy was facing a real population problem. But according to preliminary figures for last year, birthrates are up for the first time in a decade and could reach 1.4 children per woman for 2007.

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The program is particularly interesting for professional women. Many feel they face the choice: children OR career; or they would have been financially strapped if their salaries were lacking in the family household budget. Elterngeld appears to have played a positive role in couples deciding to have a child or further children.

By the way: Germany's family minister Ursula von der Leyen (here to the left) has seven children of her own.

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September 2008

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