Complementary Measures
In addition to their entitlement to allowances and tax credits, mothers and fathers are also eligible for payments /measures in special circumstances.
Severance Pay due upon the Birth of a Child
When a child is born, employees may terminate their employment within certain periods for that reason, either during the protection period after birth or three months before the end of the parental leave. In such cases, they are entitled to severance pay under the old legislation governing severance pay if they were continuously employed for five years prior to the parental leave. However, the severance pay is only half of the normal amount, the maximum is three monthly salaries.
Employment taken up after 31 December 2002 is subject to the new severance pay legislation if such employment is terminated due to the birth of a child. Employees acquire an entitlement to severance pay from the employee income provision fund regardless of the duration of employment.
In case of receipt of child care allowance contributions are paid from the Family Burden Equalization Funds.
However, employees will only be entitled to payout of the severance pay once contributions have been paid for three years.
Pension Insurance Credit for Child-Rearing Periods
As from 01 January 2005 mothers may acquire contributory years under their pension insurance for times spent raising children, too, not only for times of gainful employment. Fathers will have such years credited as contributory years if they are able to substantiate that they primarily took care of the child/ren, e.g. as a lone parent or male homemaker living with a working mother. The maximum credit per child is four contributory years from the pension insurance (five years in case of a multiple birth). Pension contributions for periods spent raising children are calculated on the basis of a monthly assessment basis of 2,090.61 Euro for the year 2023.
Free Self-Insurance in the Pension Insurance System for Caregivers of Disabled Children
Mothers or fathers who have to give extensive care to a child with disabilities in the same household for whom they also receive higher family allowance, and who are thus unable to continue working, there is an option of voluntary self-insurance under the public pension insurance scheme. Contributions to the pension insurance are paid from the Family Burden Equalization Fund in their entirety up until the child turns 40.
Care Release
Employees may be released from work for nursing next of kin for a maximum of one week per calendar year while they continue getting paid. Paid care release can be requested when next of kin living in the same household (for example spouses or life partners, children, including adoptive and foster children) fall ill or if a caregiver who normally takes care of children - even if the children are not ill - is unavailable (for example due to hospitalisation).
If the one-week care release has been used up and a child under the age of twelve living in the same household falls ill, the employee is entitled to another week of care release for the required care. The application must be submitted to the employer.