Child Benefit to Rise to €267: Germany Plans Further Relief for Families

The German government is planning to increase child benefit and introduce additional tax relief from 2027. Kindergeld is expected to rise to €267 per child per month and then to €272 in 2028. Here is what is currently planned and how much more families could receive. Families living in Germany could receive greater financial support from 2027. The Federal Cabinet has approved a tax package worth approximately €10 billion, primarily aimed at supporting people on low and middle incomes, particularly families with children. One of the most important proposed changes is an increase in Kindergeld, Germany’s monthly child benefit payment. Under the current proposal, Kindergeld would increase as follows: €259 per child per month in 2026 €267 per child per month from January 2027 €272 per child per month from January 2028 This means that child benefit would increase by €8 per child per month in 2027. In 2028, families would receive €13 more per child per month than in 2026. How Much More Child Benefit Would Families Receive? An increase of a few euros per month may not seem particularly significant at first. However, the difference becomes more noticeable when calculated over a full year, especially for families with several children. If the proposal is adopted in its current form, families would receive the following additional amounts through the increase in Kindergeld alone: Family With One Child 2027: €96 more per year 2028: €156 more per year than in 2026 Family With Two Children 2027: €192 more per year 2028: €312 more per year than in 2026 Family With Three Children 2027: €288 more per year 2028: €468 more per year than in 2026 These figures relate only to the increase in Kindergeld. The total financial benefit for an individual family could be higher because of the additional tax relief included in the proposal. According to Germany’s Federal Ministry of Finance, a middle-income family with two children could have more than €600 in additional disposable income per year from 2028. However, the exact amount will depend on the family’s individual circumstances, including income, marital status, number of children, tax class and other tax-related factors. The Basic Tax-Free Allowance Is Also Expected to Increase In addition to Kindergeld, the German government also plans to increase the basic tax-free allowance, known as the Grundfreibetrag . The Grundfreibetrag is the portion of a person’s annual taxable income on which no income tax is payable. According to the current plans, it would increase: from €12,348 in 2026 to €12,564 in 2027 and to €12,900 in 2028 In simplified terms, income tax is only charged on the portion of taxable income that exceeds the applicable basic allowance. Employees, pensioners and other taxpayers could benefit from this increase. However, this does not mean that everyone will automatically receive the same increase in their net income. The actual benefit will depend on income, tax class and personal tax circumstances. Higher Employee Lump-Sum Allowance Planned The government also plans to increase the employee lump-sum allowance, known as the Arbeitnehmer-Pauschbetrag . The allowance for employment-related expenses is expected to rise from €1,230 to €1,430 per year . This amount is generally taken into account automatically for employees. Receipts are not normally required unless the employee wishes to claim higher actual work-related expenses. Employment-related expenses may include: travel to and from work work equipment professional literature training and professional development job application expenses working-from-home expenses when the relevant requirements are met If an employee’s actual eligible expenses exceed the lump-sum allowance, they can still declare them individually in their tax return. Changes to Sunday and Public Holiday Bonuses The proposal also includes a change to the tax treatment of bonuses for working on Sundays and public holidays. The maximum hourly wage used to calculate certain tax-free bonuses is expected to increase from €50 to €75 per hour . This change could be relevant to employees working in healthcare, hospitality, transport, manufacturing, security and other sectors in which weekend and public holiday work is common. It is important to note that this is not an increase in the minimum wage or an automatic entitlement to higher bonuses. The proposed change relates only to the tax calculation threshold for qualifying bonus payments. Will Parents Need to Submit a New Application? Parents who already receive Kindergeld will not normally need to submit a new application solely because the payment amount has increased. Once a statutory increase takes effect, the Familienkasse generally adjusts monthly payments automatically. However, a new application or notification may be required if: Kindergeld is being claimed for the first time another child is born a child finishes school or begins university the education or employment status of an adult child changes the family changes its address or bank account the parents and children live in different countries the family or employment situation changes Applications and notifications of changes can be submitted through the Familienkasse or Germany’s Federal Employment Agency. Who Is Entitled to Kindergeld? Kindergeld is generally paid: for all children up to their 18th birthday under certain conditions, for unemployed children up to their 21st birthday for children in school, university or vocational training up to their 25th birthday in certain cases, when a child cannot begin or continue vocational training because no suitable place is available For foreign nationals, entitlement may also depend on residence status, place of residence, employment and other conditions. Special rules may apply when parents and children live in different countries or when a family may be entitled to family benefits from more than one country. In such cross-border cases, the authorities determine which country has primary responsibility for making the payment. When Are the Changes Expected to Take Effect? The first increase in Kindergeld is planned for 1 January 2027 . A further increase is expected to follow on 1 January 2028 . However, it is important to understand that although the Federal Cabinet has approved the proposal, the legislative process has not yet been completed. The draft must still be considered by the Bundestag and, where required, the Bundesrat. Individual amounts and provisions may still be amended during the parliamentary process. Parents do not currently need to submit a new application or contact the Familienkasse solely because of the announced increase. What Would the Changes Mean for Families? If the legislation is passed without major amendments, families with children could benefit from several measures: higher monthly child benefit a higher basic tax-free allowance a more favourable tax calculation a higher employee lump-sum allowance Families with children and households on low and middle incomes are expected to benefit the most. However, the frequently mentioned figure of €600 more per year is not a guaranteed amount for every family. It is a model calculation for a household with two children that includes several different tax relief measures. Conclusion Germany is planning several tax relief measures for 2027 and 2028. The increase in Kindergeld is one of the most important proposed measures for families. Under the current proposal, Kindergeld would rise to €267 per child per month in 2027 and €272 per child per month in 2028 . A higher basic tax-free allowance and further tax relief measures are also planned. As a result, families could have several hundred euros more available each year. The actual amount will depend on their personal income and tax circumstances. Gastarbajter24 will continue to monitor the legislative process and provide updates once the new rules have been finally approved. Please note: This article is intended for general information only and does not constitute tax or legal advice. The amounts stated are based on a proposal approved by the Federal Cabinet in early September 2026. Changes may still be made during the legislative process. Sources: Reuters – Cabinet decision and proposed amounts , Federal Employment Agency – Kindergeld and the Familienkasse , Federal Ministry for Family Affairs – Kindergeld eligibility requirements