Founding with Parental Benefit

General conditions: what you should pay attention to

Working hours during parental leave: Parents are allowed to work up to 32 hours per week under § 15 BEEG, unless different regulations apply ^[2].

Notification to employer: If the side activity is not excluded in the employment contract, a written notification is sufficient. Objection is only possible if operational reasons exist ^[1].

ElterngeldPlus offers models with reduced payments over a longer period ^[3].

Parental allowance and income from self-employment: Your income affects the parental allowance. It's still worth earning additional money – here's a simplified calculation example:

Financing options

For your start into self-employment, there are several financing options that can be combined with parental allowance:

Mikrokreditfonds Deutschland: Start-up ideas up to €20,000 can be funded – even without bank access ^[4].

KfW-Gründerkredit – StartGeld: Loans for investments and Betriebsausgaben (business expenses) in the first three years after founding – also ideal when starting during parental leave ^[5].

Start-up grant after parental leave: If you're entitled to unemployment benefit I, the start-up grant can also be applied for directly after parental leave → Starting a business with unemployment benefit I. Requirements: at least 15 hours per week self-employment, viable business plan, and expert opinion (e.g. from IHK) ^[6].

Insurance during parental leave

Health insurance: If you have not been employed previously and are therefore covered by family insurance, you remain covered with low income (up to approx. €505–535 monthly). If your income is above this, compulsory membership arises – often with higher contributions ^[7].

Step by step

1. Clarify status & entitlement (before you start)

• Secure your entitlement: You need residence in Germany, live in the same household with your child, care for them yourself, and don't work full-time ^[8].
• Decide whether you want basic parental allowance, ElterngeldPlus, or partnership bonus – depending on working hours, parental leave duration, and career wishes.

2. Planning & income provision

• As a self-employed person, your parental allowance is usually calculated based on the net profit of the last financial year (65% of net, minimum €300, maximum €1,800) ^[3].
• If your income fluctuates during the reference period, you can apply for a different financial year (e.g. due to pregnancy) or use the cash principle to control high income temporally.

3. Prepare application & proof

• Use the federal parental allowance calculator ^[9] to estimate your possible entitlement in advance.
• The application can only be submitted after birth – but prepare all documents in advance: tax assessment, Einnahmenüberschussrechnung (income-surplus statement), forecasts for the reference period.
• Parental allowance is paid provisionally. After the reference period you must prove your actual income – deviations result in additional payments or reclaims.

4. Self-employment during receipt

• You may work up to max. 32 hours per week – above this, parental allowance ceases.
• Inform your employer in good time if you want to work during parental leave. They have four weeks to object.

5. Grants & financing

• For investments or running costs you can, for example, apply for a microloan (up to approx. €20,000) or a KfW-ERP-Gründerkredit StartGeld.

6. Plan long-term

• Use parental leave to gradually build up your self-employment – e.g. with a website, pilot projects, or small network.
• Pay attention to bookkeeping & time records from the beginning – this helps later with parental allowance audits.
• Also plan ahead financially: parental allowance doesn't replace 100% of your turnover – ongoing costs like health insurance continue ^[10].