How much subsidy does a family with children get from 2027?
Last updated: · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005
If one parent is eligible, from 2027 the state pays up to €300 a year into that parent’s contract for each child for whom child benefit (Kindergeld, the monthly state payment for children) has been granted. The full child subsidy is available from just €25 a month. On top of that comes the basic subsidy, up to €540 for €150 a month. With two children, if you pay €25 a month the state adds €750 a year, more than twice the €300 you pay in yourself.
What families get per year
| Household | Contracts | Contribution per month | Subsidies per year |
|---|---|---|---|
| Single parent, 1 child | 1 | €25 | €450 |
| Single parent, 3 children | 1 | €25 | €1,050 |
| Couple, both working, 2 children | 2 | €25 each | €900 |
| Couple, both working, 2 children | 2 | €150 each | €1,680 |
| Couple, both working, 3 children, 2 of them in training or with a mini-job (Minijob, a small job with a low wage) | 4 | €150 each | €3,060 and a one-off €400 starting bonus |
This is how it is calculated: basic subsidy 50 cents per euro on the first €360 a year, 25 cents per euro up to €1,800, at most €540. Child subsidy as much as your own yearly contribution, at most €300 per child. The figures apply if the parents are eligible, for example as employees or civil servants. In the last example, each of the two older children pays €150 a month into their own contract: 4 times €540 basic subsidy and 3 times €300 child subsidy.
Who gets the child subsidy
- The child subsidy goes into one parent’s contract. If the parents are not married to each other, it is the parent who receives the child benefit. For married parents who live together, it goes to the mother in 2027 and from 2028 normally to the parent who receives the child benefit. In both cases, if both parents want it to go to the other parent, they tell the provider together. Your advisor arranges this with you when you sign.
- This parent needs their own subsidised contract. For the full child subsidy, €25 a month is enough, even with several children.
- The child subsidy is paid as long as child benefit has been granted for the child.
Children in training or with a mini-job
If a child is doing in-company vocational training or has a mini-job at a company and pays into the pension insurance there, the child is eligible in their own right. If the child is under 18, you co-sign the contract. The child gets their own contract with up to €540 basic subsidy a year, and under 25 a one-off €200 starting bonus. The parents keep the child subsidy as long as they receive child benefit for the child. More about mini-jobs.
Check the whole household
In the result of the subsidy check you can tap who else in your household can be subsidised, for example a child in training or a partner with a mini-job. Your advisor then goes through each person with you so that no subsidy is left unused.
How much subsidy does your household get? The subsidy calculator works out in one minute how much subsidy you can get. An advisor then checks with you whether everything fits your situation. This conversation is free of charge and in English.
Calculate your subsidyFrequently asked questions
How much child subsidy is there from 2027?
Eligible parents get up to €300 a year for each child for whom child benefit has been granted, regardless of the year of birth. The full child subsidy is available from €25 a month of your own contribution.
How much does a family with two children get?
A couple, both working and eligible, gets up to €1,680 of subsidies a year if each pays €150 a month: twice €540 basic subsidy and twice €300 child subsidy.
Do we keep the child subsidy if our child has their own contract?
Yes. As long as you receive child benefit for the child, the child subsidy stays in your contract. The child gets the basic subsidy in their own contract.
Read more
Sources
- Federal Ministry of Finance: questions and answers on the reform of private pensions (in German)
- Federal Law Gazette 2026 I No. 156: Altersvorsorgereformgesetz, the pension reform act (in German)
The money in the contract is meant for your retirement and your own home. If you have the subsidised savings paid out early, for example by cancelling the contract, you have to pay back the subsidies and tax benefits.
The examples explain the legal rules in simplified form. They do not replace tax or legal advice for your personal situation. Contract costs and interest are not included. This page was created with the help of artificial intelligence and translated from the German original. INTERNA is responsible for its content. More information