AVD During Parental Leave: Subsidies Without Income?
Published on · Managing Director & Partner, Alsterspree Verlag GmbH
This article was written by an author with the support of AI.
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Allowances During Parental Leave: Yes, but with Conditions
Yes, you are entitled to state subsidies for the new Altersvorsorgedepot during parental leave even without earned income. Due to statutory crediting of child-rearing periods, you remain compulsorily insured under statutory pension insurance (§ 3 Satz 1 Nr. 1 SGB VI).[1] The eligible group explicitly includes mothers and fathers during the three-year child-rearing period; individuals on parental leave are intended to receive subsidies.[2] In addition to this entitlement, only a minimum payment of 120 euros per calendar year into your own contract is required, which equals 10 euros per month.[2]
How much state funding your specific parental leave year yields depends on your chosen personal contribution, your family situation, and the assignment of the child allowance. Our Altersvorsorgedepot subsidy calculator determines your personal figures in just a few steps; for more complex configurations, our independent advisory matching service is at your disposal.
Overview of the Statutory Subsidy Chain
Eligibility for state funding in the Altersvorsorgedepot does not require active employment on the qualifying date, but instead links directly to pension insurance status. During the child-rearing phase, a three-tier mechanism applies:
- Child-rearing periods: Child-rearing periods (Kindererziehungszeiten) are periods dedicated to raising a child during the first three years of life; they begin after the month of birth ends and conclude after 36 calendar months (§ 56 SGB VI).[3]
- Mandatory pension insurance: Individuals credited with child-rearing periods are subject to mandatory coverage in the statutory pension insurance system (§ 3 Satz 1 Nr. 1 SGB VI).[1]
- Direct subsidy eligibility: Mothers or fathers during the three-year child-rearing period are directly eligible for government subsidies; the prerequisite for receiving the basic allowance is also an annual payment of at least 120 euros into one's own retirement savings plan, which corresponds to 10 euros per month.[2]
Calculation example: How much subsidy a parental leave year yields
From the start of the reform in 2027, subsidies operate via contribution-proportional allowances rather than through an income-dependent minimum personal contribution. The basic allowance amounts to 50 cents per euro contributed up to an annual personal contribution of 360 euros, and 25 cents per euro above that up to the subsidized maximum amount of 1,800 euros, resulting in a maximum total of 540 euros per year.[4] In addition, one parent receives one euro of child allowance per euro contributed up to a personal contribution of 300 euros, representing up to 300 euros per child per year.[5]
Especially with low contributions during parental leave, an exceptionally high subsidy ratio is achieved. Those who save between 10 euros and 25 euros per month leverage the state incentives optimally:
| Monthly personal contribution | Annual personal contribution | Basic allowance (50 cents per euro) | Child allowance (1 child, 1 euro per euro) | Total credit in depot | Subsidy relative to personal contribution |
|---|---|---|---|---|---|
| €10 / month | €120 | €60 | €120 | €300 | 150 % |
| €25 / month | €300 | €150 | €300 | €750 | 150 % |
Note on model calculations: The figures shown are illustrative calculations based on the enacted Altersvorsorgereformgesetz starting in 2027. This does not constitute investment advice within the meaning of § 1 Abs. 1a Nr. 1a KWG.
Parental leave with or without part-time work: Who benefits and how?
Subsidy eligibility remains stable in both life models: statutory protection applies both during a complete career break with zero euros in employment income and during part-time employment during parental leave. The decisive factor remains mandatory pension coverage via child-rearing periods under § 3 Satz 1 Nr. 1 SGB VI.
Additional subsidy components during reduced working hours
A common misconception involves the so-called low-income earner bonus: the enacted law does not contain an income-dependent special allowance. The subsidy system consists of the contribution-proportional basic allowance, the child allowance, and a one-time career starter bonus of 200 euros for contracts entered into before age 25.[5] Why the frequently cited income threshold originates from an earlier draft is explained in our article on the low-income bonus. If you only hold a mini-job during parental leave, your subsidy eligibility is guaranteed in any case through parallel child-rearing periods.
- Full parental leave without income: Subsidy eligibility is derived directly from the child-rearing period. With an annual minimum personal contribution of 120 euros, a 60-euro basic allowance plus the proportionate child allowance of 120 euros are deposited into your retirement depot.
- Parental leave with part-time employment: Regular part-time earned income establishes its own mandatory pension insurance coverage. The amount of the allowances does not depend on income level, but solely on your own personal contribution in the respective year.[2]
- Allocation of the child subsidy: The state child allowance of up to 300 euros is awarded to one parent—by default to the parent entitled to child benefits (Kindergeld)—though a transfer is possible upon joint application.
Reducing, pausing, or restarting contributions: Full flexibility
From 2027, the Altersvorsorgedepot offers significantly greater flexibility compared to the traditional Riester pension. Families do not need to commit to rigid savings rates or face bureaucratic obstacles during a parenting phase.
Structuring options when the household budget changes
If household income becomes tighter during parental leave, three transparent courses of action are available to you:
- Lower contributions to the minimum: Reduce your deposit to 10 euros per month (120 euros annually) to secure the full basic subsidy and proportional child allowances with minimal budget expenditure.
- Temporarily pause contribution payments: Set your savings rate to zero euros in the event of acute liquidity needs. You will not receive any allowances for the respective contribution year, but unlike old contracts, you do not have to worry about penalty fees or repaying previous allowances.
- Increase the savings rate flexibly again: After returning to work or following the end of parental leave, the monthly savings amount can be easily adjusted to your regular income at any time.
Outlook for 2027: How the application process will work
The legal framework for the private pension reform has been passed by the Bundestag and Bundesrat. Nevertheless, regarding the concrete application practice starting January 1, 2027, an open outlook remains concerning the exact technical implementation.
The operational processes between depot providers and the central subsidy authority will take shape with the market launch of the new retirement provision products. It is expected that standardized continuous subsidy applications and fully digital interfaces will automate the verification of child-raising periods and contribution payments. Until the official launch of product offerings in 2027, provider-specific processes remain to be seen in detail.
- Statutorily established: Direct eligibility through child-raising periods, minimum own contribution of 120 euros per year, as well as the allowance structure offering a basic allowance of 50 cents per euro up to 360 euros of own contribution and up to 300 euros child allowance per child.
- In operational preparation: Technical connection of depot providers to the central authority, automated application forms, and deadlines for submitting evidence of child-raising periods.
Calculate subsidies and access neutral advisory
General basic rules offer reliable orientation, but cannot fully reflect individual family situations. Exactly how much government subsidy you are entitled to in the parental leave year and which own contribution is optimal for your situation can be calculated precisely based on your personal data.
To analyze your subsidy opportunities for 2027, use the retirement knowledge information portal and our retirement depot subsidy calculator. Check in our in-depth article to what extent an Altersvorsorgedepot in parental leave pays off for you. If you have further questions regarding the distribution of allowances between both parents or regarding existing previous contracts, our independent advisor matching service arranges a free, neutral professional consultation.
- Check subsidy eligibility: Have your child-raising periods registered with Deutsche Rentenversicherung.
- Plan own contribution: Budget at least 120 euros in annual contributions to secure government subsidies without gaps.
- Start calculation: Simulate subsidy rates with the interactive calculator and consult independent advisory if needed.
Häufig gestellte Fragen
- Do I also receive allowances if both parents are on parental leave?
- Yes, that is possible. The child-rearing period for the same child is assigned to only one parent; the other parent, however, can be directly eligible through their own mandatory insurance or indirectly eligible as a spouse. Each must pay the minimum own contribution of 120 euros per year into their own Altersvorsorgedepot.
- What happens if I contribute nothing at all during parental leave?
- If you pause your payments completely, entitlement to the state basic and child allowances expires for that year. However, starting in 2027, no contractual penalties or clawback mechanisms apply. As soon as you resume paying in, the allowances will flow again.
- Does the low-income earner bonus also apply in the parental leave year?
- The enacted legislation does not include an income-dependent special allowance: the subsidy structure consists of the basic allowance, child allowance, and the one-time career starter bonus for young adults. However, small personal contributions during parental leave receive particularly high subsidy rates, as each euro up to 360 euros yields 50 cents in basic allowance and 1 euro in child allowance per child.
- Do I have to pay full contributions immediately after parental leave?
- No, you can flexibly adjust the amount of your payments into the Altersvorsorgedepot at any time starting in 2027. You decide for yourself if and when you wish to increase your contributions again after parental leave.
- Do I need to reapply for the parental leave allowance every year?
- The application process is expected to be greatly simplified starting in 2027. Similar to before, there will likely be a continuous allowance application that you submit once to your depot provider. The exact operational details are currently being finalized.
- Does the subsidy require me to be employed again at the end of the year?
- No. Subsidy eligibility for the Altersvorsorgedepot does not depend on whether you are employed on a specific cut-off date at year-end. What matters is that you were compulsorily insured during the contribution year through child-raising periods and paid your minimum own contribution of 120 euros.
Sources
- [1]gesetze-im-internet.de
- [2]finanztip.de
- [3]gesetze-im-internet.de
- [4]bundesfinanzministerium.de
- [5]bundesregierung.de
- []The low-earner bonus in the Altersvorsorgedepot: amount & rules
- []Altersvorsorgedepot and Minijobs: am I eligible for the subsidy?
- []Kinderzulage: bekommen beide Eltern die 300 Euro?
- []Altersvorsorgedepot during parental leave - is it worth it?
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