As an employer in Germany, understanding employee expectations regarding maternity leave is key to operating successfully. As stated by the International Labor Organization (ILO), over 120 countries globally mandate paid maternity leave and other healthcare benefits for employees, including Germany. Germany is known worldwide for their high taxes and rigorous social security contributions. However, these contributions almost guarantee generous employee benefits, including paid maternity leave.
It’s crucial that employers are well-informed about maternity leave regulations in Germany and the entitlements of their employees to ensure compliant operation. In this guide, we’ll discuss the legal obligations that employers must meet regarding maternity leave in Germany, expectations as an employer, and how an Employer of Record (EOR) can help. Let's get into it!
How Long Is Maternity Leave In Europe?
Maternity leave rights for European Union member states are outlined in the 1992 Pregnant Workers Directive. This EU legislation dictates that the minimum period for maternity leave is 14 weeks, with two weeks of required leave before and after the birth of a child.
However, this allowance may vary throughout Europe. Especially in non-EU states that are not subject to the guidelines of EU legislation and rulings.
How Long Is Maternity Leave In Germany?
In Germany, maternity leave is regulated by the Maternity Protection Act (Mutterschutzgesetz) which provides protection for working mothers who wish to take time off to care for their child. Mothers in Germany are legally entitled to 14 weeks of maternity leave.
Maternity protection starts from the moment of pregnancy and continues through childbirth. Maternity leave can begin up to six weeks before the expected date of birth and cannot begin any later than the day after the child’s birth.
Employee Protections and Benefits During Maternity Leave
Germany’s maternity leave offers some of the most comprehensive benefits in the world. Mothers who are covered by statutory health insurance are entitled to paid leave with benefits
both during pregnancy and after birth. Understanding the allowances and rights of German workers during maternity leave is important for maintaining compliance and ensuring that all necessary employee rights are fairly met.
If you’re new to hiring abroad, consider partnering with an Employer of Record in Germany such as Borderless AI. An experienced employer of record can help with everything from hiring and onboarding to managing employees and navigating local labor laws.
Under What Circumstances Do Employees Qualify for Maternity Leave?
All female employees are eligible for maternity leave when they become pregnant. However, there are a few additional criteria that must be met aside from pregnancy and childbirth if an employee wishes to be compensated during maternity leave.
To be considered eligible for maternity benefits, individuals must meet one of the following criteria:
- Are employed and covered by a statutory health insurance scheme.
- Are self-employed or a freelancer and a member of a statutory health insurance scheme with sickness benefits included.
- Are either employed or self-employed and have private health insurance.
What is the Maternity Allowance in Germany?
The maternity allowance in Germany is determined by the mother's income and the type of health insurance they have. Maternity pay is tax-free and is deposited directly to the employee’s bank account. Employers are not solely responsible for supporting the employee during maternity leave.
Are Employers Required to Provide Compensation?
During parental leave, employers are not required to pay their employees a regular salary. Employees who apply for maternity leave will be compensated through maternity benefits, a financial government-supported program that compensates the worker if they are unable to work after the birth of a child.
This allowance may be supplemented by the employer depending on the type of insurance the employee has, as well as the contractual agreements between the employer and employee.
To find out in what situations you may be responsible for providing supplemental compensation, seek advice from an international hiring partner, such as an Employer of Record.
How Long is an Employee Entitled to Benefits?
Maternity allowance in Germany is meant to replace a portion of the mother's income during the leave period. Maternity allowance, under regular circumstances, is provided for six weeks before delivery and eight weeks after.
Extended maternity allowance is paid for up to 12 weeks with premature or multiple births, as well as if a doctor certifies the child as disabled within eight weeks after childbirth. In these cases, the mother will need to apply for an extended period of protection.
Additionally, in the event of a premature birth, postnatal coverage is extended by the number of days the child is born before the expected due date.
Can Employment Be Terminated During Maternity Leave?
No, pregnant women and those on maternity leave are protected against termination in Germany. Employers are prohibited from terminating a woman's employment during pregnancy or maternity leave, except in cases of severe misconduct or under exceptional circumstances.
Women who return to work following maternity leave are given protection against dismissal for a specific duration. The length of this period depends on the duration of the maternity leave and can range from two to six months.
Can Maternity Leave Be Extended in Germany?
Mothers of premature or disabled children may be eligible for extended maternity leave in Germany. Mothers who give birth to more than one child are also entitled to an extra two weeks of maternity leave for each additional child.
Resuming Work After Maternity Leave
When returning to work after maternity leave in Germany, mothers are guaranteed the right to be reinstated to their previous position or assigned an equivalent role. This means that the employer must offer them a role that is similar or equal to the one they held before the leave.
If an employee chooses not to rejoin the workforce after maternity leave, she is required to provide her employer with adequate notice within the acceptable notice period. Employees who are on leave should notify the company's human resources department at least seven weeks before the end of the maternity leave period.
Parental Leave in Germany
Maternity leave in Germany can also be extended to fathers as paternity leave. Parental leave can be taken for up to three years. Maternity leave, however, can only be taken by the mother.
Childcare Options Upon Returning to Work
Following maternity leave in Germany, mothers have the opportunity to opt for parental leave. This leave is open to both parents and can be used until the child turns three.
While on parental leave, parents are eligible to receive a parental allowance, which is financial support granted by the German government. Employees on parental leave are eligible to receive this allowance for up to 14 months. This allowance can be shared between both parents.
Types of German Health Insurance
The healthcare system in Germany (Krankenversicherung) operates on a universal basis, requiring that all citizens and residents have coverage. There are two categories of health insurance in Germany: public health insurance (Gesetzliche Krankenversicherung) and private health insurance (private Krankenversicherung). The type an individual possesses is determined by their employment status and income level.
Public Health Insurance (Gesetzliche Krankenversicherung)
The majority of the German population is covered by statutory health insurance (Gesetzliche Krankenversicherung). If a worker is employed in Germany and earns less than 66,600 euros per year (as of 2023), they will be automatically enrolled in this program. Their monthly contributions include visits to healthcare providers, hospitalization, basic dental care, as well as prescriptions and medications.
By participating in the German statutory insurance system, they are protected by statutory accident insurance and long-term care insurance. Individuals also have the right to receive sickness benefits, child sickness benefits, and maternity leave benefits.
Private Health Insurance (Private Krankenversicherung)
Freelancers, entrepreneurs, and other self-employed individuals, along with high-earning professionals (those earning above 66,600 euros annually or 5,550 euros monthly in 2023), have the option to choose private health insurance (Private Krankenversicherung) instead of being enrolled in the statutory health insurance plan.
Approximately 10% of the population is covered by private health insurance. Private insurance typically provides more extensive coverage and includes alternative therapies and private hospital services that might not otherwise be available.
However, premiums for private insurance are usually based on individual risk factors and tend to increase over time. Once an individual has opted for private health insurance, it can be challenging to switch back to public insurance, unless there are significant changes in personal circumstances.
Maternity Benefits Allowed Based on Insurance Type
The amount of maternity benefits that can be claimed depends on employment status, the nature of an employee’s health insurance coverage, and their earnings in the three months prior to the leave.
Maternity Benefits Through Public Health Insurance
For employed individuals under statutory health insurance, maternity benefit is calculated based on the average earnings from the last three months of full-pay employment. Individuals can receive up to 13 euros per day. As an employer, you will then be able to supplement this amount.
If an individual is self-employed, has coverage through a public health insurance provider, and is entitled to sickness benefits, they will receive maternity benefits equivalent to the allotted sickness benefit during maternity leave.
Benefits Through Private Health Insurance
If an individual has private health insurance and a supplementary daily sickness allowance policy (Krankentagegeldversicherung), they may qualify for a daily sickness allowance throughout maternity leave. This will replace maternity benefits provided by public health insurance. If they are not eligible for this allowance, they may consider applying for maternity benefits through the Federal Social Security Office in Germany.
Benefits Through the Federal Social Security Office
If an individual is employed but is not enrolled in a statutory health insurance scheme (for example, if they have private health insurance or are covered as a family member), they may be eligible for a lump sum maternity benefit from the Federal Social Security Office. This payment can amount to a maximum of 210 euros. If they have an employer, the employer may also provide additional support on top of the payments from the Federal Social Security Office.
Employer's Maternity Benefit Top-Up (Arbeitgeberzuschuss)
If an employee’s average net income prior to maternity leave was over 13 euros per day (or 390 euros per month), German employers are legally mandated to bridge the gap between these maternity benefits and the employee’s regular salary. This additional amount is provided as a monthly top-up throughout the employee’s maternity leave.
Employers can be reimbursed for their contributions to the maternity benefit allowance from the employee’s health insurance provider, along with contributions to statutory health insurance, pension insurance, and unemployment insurance.
How to Apply for Maternity Benefits in Germany
Expectant mothers can request maternity benefits no sooner than seven weeks before the anticipated date of birth. To approve a requested maternity leave as an employer, a doctor's certificate verifying the expected delivery date (Bescheinigung über den mutmaßlichen Tag der Entbindung) must be presented by the employee.
This same certificate must also be presented to the employee’s private health insurance provider, along with a completed application form.
If an employee is not enrolled in public health insurance and does not have a private health insurance provider, they must submit an application to the Maternity Benefits Section (Mutterschaftsgeldstelle) of the Federal Social Security Office.
Self-employed women who have private insurance are entitled to the daily benefits stated in the contractual agreement during maternity leave.
Pregnant women and new mothers are also entitled to receive:
- Care from a doctor during the pregnancy and after delivery.
- Assistance from a midwife during the delivery.
- Access to medicine, bandage, treatment and equipment.
- Cover for the costs for an inpatient delivery at the hospital.
- Home care.
- Domestic help.
Other Types of Allowances
Parental Allowance (Elterngeld)
To further assist new parents financially, the German government provides a parental allowance (Elterngeld) program that reimburses mothers and fathers for any income lost up to 24 months.
Child Benefits (Kindergeld)
Becoming a parent grants access to several additional types of parental benefit in Germany. As long as the child is a dependent, parents are eligible to receive financial aid from the German government in the form of child benefit (Kindergeld). This encompasses tax-free stipends, additional allowances, and child support payments.
How Borderless AI Can Help
What are parental leave policies in the countries where your employees are based? To help manage the complexities of maternity leave in Germany, consider partnering with a trusted Employer of Record (EOR) like Borderless AI to efficiently manage overseas employees.
Borderless AI redefines global HR with no upfront costs, unrivaled customer experience, and the first-ever AI agent for global HR. Onboard, manage, and pay your international team in one platform.
Let us handle the intricacies of overseas employment so you can focus on expanding your business across borders. Speak with us to schedule a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to customers, contractors, employees, partners, or the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
