Family time and parental leave for the second parent: this is how to fully seize the financial potential

Family time and family time bonus

Directly after the birth of a child, the second parent may use the family time (“father’s month”). Under certain circumstances, this may be financially supported by the family time bonus.

Requirements

The family time bonus is a financial aid for the second parent and amounts to EUR 54.87 per day (amount for 2025) for optionally 28, 29, 30 or 31 days. The eligibility period of the family time bonus is required to correspond to the used family time.

• The second parent is eligible for the family time bonus if the child is eligible for family allowance and the family receives the family allowance.
• The family’s vital interests are required to be in Austria and the family is required to have a common household and a common main place of residence.
• Moreover, the eligible parent is required to have been continuously employed for 182 days prior to the beginning of the family time with the employer being subject to health and pension insurance contributions.
• Furthermore, it is required that no financial benefits from the unemployment insurance were received in this time period.
• The family time may only be consumed during the mother’s employment ban.

These requirements are designed to ensure the targeted use of the family time bonus.

Application process

Generally, families may submit the application for the family time bonus from the birth of the child and may also submit the application during the family time. The second parent is eligible after the mother and the child were released from the hospital. Important: The application must be submitted to the health insurance provider no later than 121 days after the birth of the child.

Social security

During the family time, there must be no remuneration claims against the employer of the second parent. The employer is required to deregister the second parent from the social security provider. At the same time, parents eligible for the family bonus are partly insured with the health and pension insurance.

Parental leave and childcare allowance

Parental leave

In addition to the family time after the birth of a child, parents may use parental leave. Parents may split the parental leave two times, with each part having to last for at least two months. If only one parent uses parental leave, it may last until the end of the child’s 22nd month of life. If both parents alternate in using the parental leave, it may last until the end of the child’s 24th month of life.

During the parental leave, both parents enjoy special protection against dismissal. For the second parent, this protection starts four months prior to the parental leave (but no earlier than from the birthday of the child). We recommend not to submit the application for parental leave for the second parent prior to the protection against dismissal entering into force and to apply for parental leave in written form.

Childcare allowance

Childcare allowance may be received during parental leave either as a lump-sum amount (“childcare allowance account”) or as income-based amount. The family time bonus received during the family time is not credited.

The lump-sum childcare allowance offers a fixed daily rate, independent from the parent’s prior income. The amount may vary depending on the parental leave period. The childcare allowance amounts to EUR 17.65 per day for the longest period and to EUR 41.14 per day for the shortest period. The childcare allowance may be received for up to 851 days if only one parent uses parental leave, and for up to 1,063 days if both parents use parental leave from the birth of the child.

However, the income-based childcare allowance may be received for up to 365 days from the birth of the child, and if both parents use parental leave for up to 426 days. The amount of the income-based childcare allowance is 80% of the parent’s last income, however, up to a maximum of EUR 80.12 per day.

Continue working during parental leave

The individual limit on additional income is EUR 18,000 per year for the lump-sum childcare allowance. However, if in the prior year the parent earned more than EUR 18,000, the limit on additional income is 60% of the taxable income of the calendar year prior to the birth of the child in which no childcare allowance was received.

The limit on additional income is fixed at EUR 8,600 per year for the income-based option.

After parental leave: parental part time

After parental leave, both parents are granted the option to use parental part-time at the same time or to directly connect their parental part-time to the parental leave of the other parent. However, it is not possible for one parent to use parental part-time while the other parent is still using parental leave.

Parental part-time may be used for up to seven years and the working time has to be reduced for at least 20%. Employees are legally entitled to parental part-time if the employer’s company has over 20 employees. Moreover, the employment contract must have lasted continuously for three years. Furthermore, a common household or custody of the child is required.

During parental part-time, income is subject to normal taxation. The general rules of the Austrian Income Tax Act apply. During parental part-time the obligation to pay health, casualty and pension insurance contributions still applies. The amounts are calculated from the reduced income on a pro rata basis. The amounts depend on the agreed working time. The employer remains responsible for registering and paying social security contributions.