Change in the earnings threshold for family benefits and increase in the sibling scale

The right to family benefits for children born after the 18th birthday of the following calendar year only exists insofar as the child’s taxable income (i.e., gross income minus social security contributions, special expenses, extraordinary expenses, and tax allowances) does not exceed the earned income threshold. Tax-free income and apprentices’ allowances, orphan’s pensions, and orphan’s care benefits remain unconsidered. This threshold was previously € 8,725 and will be increased to € 9,000 on January 1, 2008. If the threshold is exceeded, there is no entitlement to family benefits throughout the entire calendar year.
The amount of family benefits payable depends on age and number of children. The following table shows the monthly amounts (€) per child valid as of 1.1.2008. Benefit amount for the 4th child: Amount of the 1st child increased by € 50.

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