Definition and Legal Framework of Child Supplement
Der Child Supplement (abbreviated as KiZ) is a social law benefit in Germany that supports parents with low income and aims to reduce the risk of neediness according to the Second Book of the Social Code (SGB II, also known as Unemployment Benefit II or ‘Hartz IV’). The child supplement is governed by Section 6a of the Federal Child Benefit Act (BKGG) and serves to ensure that, in particular, families with children can independently cover their living expenses. The goal is to prevent families from having to claim basic security benefits, insofar as this is possible through supplementary financial support.
Legal Basis
The relevant regulations for the child supplement are set out in the <a href="https://www.gesetze-im-internet.de/bkgg/_6a.html”>Federal Child Benefit Act (BKGG), in particular in Section 6a BKGG. In addition, relevant provisions can be found in the Social Code II (SGB II) and in the Income Tax Act (EStG) regarding the definition of child benefit as a prerequisite.
Purpose and Target Group of the Benefit
The child supplement relieves households whose earned income is sufficient for the parents’ own needs but not enough to ensure the maintenance of the children living in the household. It is aimed at both parental couples and single parents who are entitled to child benefit and live with their children in a common household.
Eligibility Requirements
According to Section 6a BKGG, entitlement to child supplement requires the following conditions:
Eligible Persons
- Parents or parent: Entitled are biological parents, adoptive parents, or foster parents who live together with their child(ren) and are entitled to child benefit for them under the EStG or BKGG.
- Children: The child for whom the supplement is applied for must be under 25 years old, unmarried, and registered in the same household.
Needs and Income Assessment
The child supplement is only granted if the following needs and income thresholds are met:
- Minimum income threshold: The parents’ (or parent’s) monthly gross income must exceed the legally defined minimum income threshold. This threshold corresponds to the standard requirements under SGB II plus reasonable housing and heating costs.
- Upper income threshold: The entitlement lapses if the income is so high that the needs of the entire family are met or the assessment limits are exceeded. The child must, through the supplementary income and child supplement, be excluded from receiving benefits under SGB II.
- Asset Assessment: In addition, existing assets must not exceed the exemptions specified in Section 12 SGB II.
Additional Prerequisites
- The child must not receive their own subsistence benefit (e.g., Unemployment Benefit II, social allowance).
- The applicant must be registered in Germany with their main residence.
Calculation and Amount of the Child Supplement
The amount of the child supplement is calculated individually and depends on the parents’ income and assets, as well as the number of children living in the household.
Calculation Basis
- Maximum amount: Since January 1, 2024, the monthly maximum amount per child is 292 euros.
- Credits: Excess income and assets that exceed the minimum income threshold are partially offset against the child supplement (deduction method).
- Housing allowance: When receiving housing allowance, an entitlement to child supplement may also exist; however, an application for basic security under SGB II is excluded when receiving the child supplement.
Calculation Example
Parents with two underage children, a net earned income just above the minimum income threshold, and adequate housing may, for example, receive a child supplement for one or both children through targeted income allocation, provided they are not already receiving benefits under SGB II.
Application and Procedure
Application Submission
The child supplement must be applied for in writing or online at the locally responsible Family Benefits Office. The application can be submitted at any time; however, no retroactive payment is made for periods before the application month.
Required Documents
The required evidence includes in particular:
- Proof of parents’ income and assets
- Rental contract or proof of housing costs
- Eligibility for child benefit
- Evidence of maintenance payments or maintenance advance
Approval Period and Review
The approval period is generally six months. Thereafter, a new application is necessary. Any significant changes must be reported immediately during the approval period (e.g., changes in income, a child moving out, change in household composition).
Interaction with Other Social Benefits
Relationship to SGB II and Housing Allowance
Simultaneous receipt of child supplement and benefits under SGB II is excluded. However, the combination of child supplement, housing allowance, and, if applicable, education and participation benefits is possible, thereby providing comprehensive support for low-income parent households.
Education and Participation Package
Family households entitled to child supplement also automatically receive access to the Education and Participation Package pursuant to Section 28 SGB II and Section 6b BKGG. This includes benefits such as for school trips, lunches at school, or tutoring.
Legal Remedies and Procedure in Case of Rejection
If the application for the child supplement is rejected, it is possible to file an objection with the Family Benefits Office within one month of notification of the decision. If disputes persist, legal action can be taken before the social courts.
Criticism and Legal Development
History and Reforms
The child supplement was introduced in 2005 as part of labor market reforms and has since been adjusted several times. With the Strong Families Act 2019 and further reforms, eligibility requirements were eased, maximum amounts increased, and exemptions adjusted. The goal is a continuous improvement in the social security of families with low earned income.
Points of Criticism
There are criticisms in individual cases of complex application procedures, the need for regular proof of income, as well as shortcomings in information and uptake of the benefit by eligible households.
Further Information
Family-friendly information portals, the Family Benefits Office, and the official pages of the Federal Employment Agency provide additional current and detailed information as well as calculation aids for the child supplement and related benefits.
See also:
- <a href="https://de.wikipedia.org/wiki/Kindergeld(Deutschland”>Child Benefit)
- Housing Allowance
Legal Basis:
- Federal Child Benefit Act (BKGG), in particular Section 6a
- Second Book of the Social Code (SGB II)
- Income Tax Act (EStG)
- Strong Families Act
Last updated: As of June 2024
Frequently Asked Questions
Who is legally entitled to child supplement?
According to Section 6a of the Federal Child Benefit Act (BKGG), parents are entitled to child supplement if they receive child benefit for their unmarried children living in the household and if their income covers their own needs, but not the total needs of the family within the meaning of SGB II. Eligible persons include biological parents as well as adoptive and step-parents, provided they live with the child in a common household. It is essential that a minimum income is proven (Section 6a (1) sentence 2 BKGG), which is currently at least 900 euros gross per month for couples and at least 600 euros for single parents. It is also decisive that, through the payment of child supplement together with child benefit and possible housing allowance, neediness within the meaning of SGB II is avoided. The legal basis as well as exclusion criteria such as residence permit and place of residence regulations are set out in detail in Section 6a BKGG.
Which types of income are considered in the calculation of the child supplement?
When calculating the child supplement, the relevant types of income and assets are strictly taken into account according to Section 6a BKGG in conjunction with Sections 11 to 13 SGB II. These include in particular earned income, income from self-employment, maintenance payments, pensions, parental allowance, and other regular income received by the child or parents. There are exemptions, for example, for earned income, which are to be calculated according to SGB II. Non-countable income is regulated under Section 11a SGB II, including certain social benefits. Additionally, assets above certain exemption thresholds are also taken into account and may lead to exclusion from entitlement (Section 12 SGB II in conjunction with Section 6a BKGG). The exact amount as well as flat-rate deductions are legally determined according to the provisions applicable to SGB II.
What is the effect of the housing allowance on the child supplement?
Housing allowance is among the so-called priority benefits and therefore plays a key role in connection with the child supplement. According to Section 6b BKGG, when an application for child supplement is made, the Family Benefits Office checks whether, through simultaneous receipt of housing allowance and child supplement, neediness under SGB II can be avoided. If there is a priority entitlement to housing allowance, it must be applied for, since housing allowance and child supplement, just like child benefit, are intended to cover the total need. Only if, after including housing allowance and child supplement, there is no more neediness, does an entitlement to child supplement exist.
How are child supplement and maintenance advance related?
The receipt of maintenance advance has a significant impact on both the entitlement to and the amount of the child supplement. According to Section 6a BKGG in conjunction with Section 11 (1) SGB II, maintenance advance is considered as income of the child and correspondingly reduces the child supplement. This means that maintenance advance received is deducted from the child’s needs relevant for the child supplement. The legal reason for this inclusion is to avoid over-provision and double benefits from public funds. The exact offsetting follows the principles of SGB II.
Is there an age limit for children for whom child supplement can be applied?
Legally, child supplement under Section 6a BKGG can generally only be granted for children up to the age of 25, provided they are not married or in a registered civil partnership, live in the parents’ household, and do not have their own income sufficient to fully cover their needs. Exceptions apply in special support situations, such as for children with disabilities; however, as a rule, the entitlement ends when employment is taken up or entitlement to child benefit ceases.
What are the legal requirements for the application process and approval period?
The application for child supplement must be submitted in writing to the competent Family Benefits Office. Entitlement is not determined retroactively; benefits are paid from the beginning of the month in which the application is received (Section 6a (5) BKGG). Exceptions only apply in the case of proven omissions or serious reasons. The approval period is generally six months as per Section 6a (7) BKGG; after this, a new application must be submitted, and the current financial situation must be proven again in detail. Documents must be provided completely and truthfully, as false statements may result in criminal and regulatory consequences.
What are the participation obligations during the period of receiving child supplement?
Parents receiving child supplement are subject to extensive participation obligations according to Sections 60 et seq. SGB I. This includes, in particular, the immediate notification of changes in income and assets, household composition, and other circumstances relevant to entitlement to the Family Benefits Office. Lack of cooperation may not only result in loss of entitlement in whole or in part (Section 66 SGB I), but also overpaid benefits must be repaid according to Section 50 SGB X. Compliance with these obligations is a prerequisite for the continued lawful receipt of child supplement.
