Kinderzuschlag - German family benefit

Kinderzuschlag is a German family benefitwhich low-income parents can apply for, as a continuation of the topic of German family benefits paid by the Familienkasse. I wrote about the Kindergeld benefit in one of my articles: Who is entitled to the German family benefit Kindergeld?

Importantly, this allowance can be supplemented by the so-called Kinderzuschlag. Unfortunately, it can only be received by parents living and working in Germany with their children. In this article, I will explain, among other things:

• What is Kinderzuschlag?
• to whom is this benefit due?
• at what rate and
• For what period can it be paid?

Kinderzuschlag, or German family benefit - what is it?

Kinderzuschlag is a German family benefit granted to parents who are on a low income. This means that this allowance will not be paid to parents of children who are on the so-called Harz IV, i.e. who are not working or whose earnings are not sufficient to support the family at all. Kindergeldzuschlag is payable alongside (not instead of!) Kindergeld. Its purpose is to support the poorest families and to combat poverty primarily among children.

Kinderzuschlag - who is entitled to this German family benefit?

First of all, the benefit can be received by parents whose income only allows them to support themselves. The income they earn is therefore not sufficient to cover the costs of supporting the whole family.

Kinderzuschlag is available for children under the age of 25 if:

• they are cohabiting in the household of the parent claiming the benefit, are not married and do not live in a legalised civil partnership,
• Kindergeld benefit is received for the child, or it is not received only because other benefits are received which exclude Kindergeld collection,
• A parent applying for Kinderzuschlag is not entitled to receive Arbeitslosengeld II unemployment benefit (otherwise known as ALG II or Hartz IV),
• parents achieve the required minimum income and do not exceed the maximum income.

Amount of Kinderzuschlag

The maximum amount of the allowance per child is EUR 170. As of 1 July this year, however, this amount will increase to € 185.

What disables partial or complete Kinderzuschlag?

The maximum benefit amount, i.e. currently € 170, is reduced by the child's income. It follows that if the child's income exceeds the above amount, the benefit will not be entitled to the child in question at all.

Attention change!

From 1 July 2019, this regulation will change. From then on, only 45% of the child's income (rather than 100% as at present) will be offset against the benefit amount.

Example

At the age of 18, the child is studying and at the same time 'earning' an income of €200 per month. In the current state of the law, this child would not be entitled to the allowance (170 euro-200 euro). From 1 July, only €90 (45% of €200) will be deducted from €185 in the same situation. Thus, a parent will receive €95 for this child, given the fulfilment of the other necessary prerequisites.

Minimum and maximum permissible income

When it comes to minimum income, the situation is straightforward. The minimum income for a single parent is EUR 600 gross. For both parents, it is EUR 900 gross.

However, the situation becomes more complicated when calculating the maximum income. The maximum income is calculated for each family individually. It cannot be higher than that provided for in the regulations for unemployment benefit - Arbeitslosengeld II (Hartz IV).

In the light of the Hartz IV regulations, the limit of the maximum permissible income is determined by the sum of a person's living costs (the so-called subsistence minimum, i.e. the sums covering basic needs) together with the percentage contribution to the parents' housing and heating costs.

The amounts provided for basic needs are the same as the sum of the potential Harz IV unemployment benefit and are as follows:

Percentage share of accommodation and heating costs

For the calculation of costs for accommodation and heating, the costs actually incurred are taken into account, but they must be reasonable.

The actual costs are then multiplied by a predetermined percentage share. Consequently, the amount of each family member's share of accommodation and heating costs is shown in the table below.

Example

Let us calculate, based on the above tables, the maximum income per Kinderzuschlag need for:

• marriages
• with two children,
• whose flat rent is EUR 600 per month .

The minimum requirement for both the parent receiving Kindergeld and the other parent is €382. Ich common requirement is therefore €764.

The parents' share of housing costs (71.83% of the €600 the family pays for rent) is €430.98.

Their total requirement is €764 + €430.98= €1194.98.

We then calculate the maximum Kinderzuschlag for two children 2*170= €340

We finally add up the parents' needs with the amount of the allowance for two children:

EUR 1194.98 + EUR 340 = EUR 1534.98.

The above family may only be entitled to Kinderzuschlag if its monthly income is more than €900 and less than €1534.98 net.

To whom will the benefit be paid?

As mentioned in the Kindergeld article, only one parent is always entitled to receive the benefit. In this case, it will be the parent who has submitted the application or the parent to whom the Kindergeld is paid. This is because the supplement in question is paid together (on the same day) with the benefit.

For what period prior to the application?

Currently, the benefit is paid for the month in which the application for Kinderzuschlag is made. This means that you will not receive, as with Kindergeld, the benefit for the 6 months prior to your application.

Kinderzuschlag - German family benefit. How long is it paid out?

The benefit will be paid up to the child's 25th birthday. Furthermore, it is granted for a period of six months. After this time, it is necessary to apply for an extension.

What do I have to do to receive family benefits from Germany?

You should:

1. Fill in the application form with the necessary attachments (necessarily the form called KiZ 5b, related to rent and heating costs, and the attachment called "KIND").
2. Include the necessary documents:

• certificate of earnings,
• alternatively, proof of receipt of the so-called Wohngeld in Germany,

3. Deliver the documents to the relevant Familienkasse.

When will I find out about the benefit award?

As in the case of Kindergeld, the Familienkasse informs the recipient of the decision on Kinderzuschlag in writing. In the event of a negative decision, an appeal can be lodged within 30 days of the decision being notified. In the case of a subsequent negative decision, it is possible to lodge a complaint with the court within 30 days of notification of the decision.

Payment of the benefit

In the event of a positive decision, Kinderzuschlag will be paid together with Kindergeld.

Information obligation

Any changes that affect the entitlement to Kinderzuschlag (e.g. lower rent, one of the children moving out of the parental household) must be notified immediately to the Familienkasse. Failure to do so may result not only in an order to repay the undue benefit, but also in a fine being imposed on the person concerned.

Should you have any further questions, I remain at your disposal, of course. Please ask questions in the comments to this article, by email or by telephone. Our law firm deals with the representation of entitled persons before the Familienkasse, advice on filling in applications for Kinderzuschlag and mediation in correspondence with the authorities in Germany.