Editor in chief at IamExpat Media
The federal government has agreed that, as part of its latest coronavirus support package, all families in Germany will receive a further child bonus payment of 150 euros per child in May 2021.
According to a draft of the financial aid law, seen by Handelsblatt, the payment is due to arrive in parents’ bank accounts in May this year. “For every child that is entitled to child benefit in May 2021, a one-time payment of 150 euros will be paid out in May 2021,” the draft law states.
Last year, parents received two so-called “Kinderbonuses” from the state, in an attempt to kick-start consumer spending after the first lockdown. The first 150 euros was paid out in September 2020, and a second payment of 150 euros followed in October.
As was the case for the previous two child bonus payments, the Kinderbonus will be offset against any tax relief (Kinderfreibetrag) the parents receive. This means that it primarily benefits those on small and medium incomes. It will not be offset against any other social security benefits.
The co-leader of the SPD party, Nobert Walter-Borjans, said the idea of the payment was to offer “a bit of help” to those who had suffered financially during the tough lockdown over the past few months.
The latest Kinderbonus is expected to cost the federal government around 2,1 billion euros.