Many families with two children are under financial pressure - especially if their income is just above the minimum subsistence level. This is exactly where the child supplement can provide the necessary support to noticeably relieve everyday life. But who is entitled? And what is the maximum income to receive the benefit? In this article, you will find out which income limits apply to families with two children in 2025 - clearly, comprehensibly and with real examples.
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What is the child supplement?
The child supplement is a monthly allowance from the state that is intended to protect against child poverty in Germany. It is aimed at families with a low or medium income. The supplement is paid in addition to child benefit and helps you as a single parent or parent couple to provide financially for your children if your income as a low earner is not sufficient.
This is intended to prevent families from having to apply for citizen's allowance - formerly Hartz IV - simply because of their income situation in order to be able to support their family. The prerequisite for the allowance is that you receive child benefit - and your income is above a minimum threshold, but below the amount your family needs to live.
💡 Good to know: The benefit is initially approved for six months. After that, a follow-up application is necessary so that your entitlement can be checked further - especially if your income or housing costs change. So plan in advance which documents you need for the extension. This will ensure you receive support without interruption.
How high will the child supplement be in 2025?
Since January 2025, the child benefit supplement for parents has amounted to up to 297 euros per child per month. This is the maximum amount you can receive - in addition to child benefit. How much you are entitled to depends on various factors: for example, your income, housing costs and how many children live with you.
The supplement is not paid as a lump sum. If you earn more, the amount is gradually reduced - until it is no longer paid at all. This model ensures that work continues to pay and that no one goes home empty-handed because of a few euros too much.
If you have two children and your income is just above the minimum income, you can receive up to 594 euros per month as a child supplement. This is in addition to child benefit of 255 euros per child per month. Together with the child supplement, this amounts to up to 1,104 euros a month in support.
💡 Tip: You can use the "KiZ-Lotsen" of the Federal Employment Agency to easily check online and anonymously how high your entitlement could be.
The most important requirements at a glance
In order to receive the child supplement, certain conditions must be met. Many families who are financially only just above the basic income support are entitled - without knowing it. Especially with two children, the support can make a noticeable difference.
You must fulfill these requirements:
- Child benefit entitlement
The child supplement is only paid for children under the age of 25 for whom you receive child benefit. You can apply for this from the birth of your child and receive it until they turn 26, as long as they live in your household. From their 18th birthday, they must also be in school, training or studying - or in a permissible transition phase between two educational stages - for the KiZ entitlement to continue.
- The income is not sufficient for the entire family needs
Your income must be above the minimum income - but not so high that the family's entire needs are covered. This means that you can provide for yourself financially, but your income is not enough to cover all your children's needs. The child supplement is intended to close this gap.
- Asset limits must not be exceeded
Income is not the only factor taken into account when calculating entitlement. If you or your partner have higher assets - such as savings, real estate or valuables - this may exclude your entitlement to the child supplement. The exact asset exemption limit depends on the size of the household and the age of the children.
❗Important: A small savings balance is permitted - you should not be penalized if you make provisions. But larger amounts can be taken into account.
Are you wondering how an Invest4Kids contract will affect your child allowance? In most cases, your entitlement will remain unchanged - but it's still worth taking an individual look at your income, assets and goals. Let us advise you personally on the best solution for your family - our initial consultation is free of charge.
- Minimum income must be achieved
Your income must not be too high, but also not too low. You must at least reach the so-called minimum threshold for the child supplement:
- For couples: at least 900 euros gross per month
- For single parents: at least 600 euros gross per month
This income must come from employment, unemployment benefit I, sickness benefit or certain social benefits. If you earn less, you are unfortunately not entitled to the child supplement, as you are then considered "not independently capable" - and would be entitled to citizen's allowance instead.
- No receipt of citizen's allowance at the same time
If you or your partner receive Citizen's Allowance, you are not entitled to the child supplement because Citizen's Allowance already includes benefits for children. Exception: You are only entitled to citizen's allowance for a short period and meet all the requirements for the KiZ - in these cases you should seek advice directly from the family benefits office.
If you meet all of these requirements, you are entitled to child supplement and can apply for this financial support.
❗Important: Many parents shy away from submitting an application because they believe they "earn too much anyway". However, it is often worth taking a closer look, especially if you have two children. Because there is no general answer as to whether you actually have too much income - only an individual calculation.
The sticking point with two children: the income limit
If you have two children and want to check whether you are entitled to child supplement, one figure plays a particularly important role: your gross monthly income. This is because the amount of your income - and how it relates to your family's needs - determines whether you are entitled and how much support you will receive.
The situation is often particularly tight for families with two children: The minimum income limit must be exceeded, but the total needs limit must not be exceeded. This is the crucial balance.
Example: This is what it looks like in practice
Imagine you and your partner earn €1,800 gross per month together - leaving you with around €1,350 net. Your rent is 1,000 euros. You receive 255 euros child benefit per child for your two children, i.e. 510 euros in total.
In 2025, the state has set the standard requirement for a couple at 1,012 euros; in addition, there are 2 × 390 euros for children aged between six and 13. Together, this results in a basic need of 1,792 euros. If you add the rent, the recognized monthly requirement for your family is 2,792 euros.
Your disposable income - 1,350 euros net earnings plus 510 euros child benefit = 1,860 euros - leaves a gap of 932 euros. The child supplement can be up to 297 euros per child, i.e. a maximum of 594 euros. If you stick to the maximum rate, the gap drops to 338 euros. A realistic housing allowance of around 400 euros fills the rest.
This covers all your needs without having to apply for citizen's allowance. This example briefly shows how KiZ and housing benefit together ensure that your family can make ends meet despite high housing costs.
No fixed maximum income limit: the calculation model
Since 2020, there are no longer any fixed upper limits, but a so-called sliding calculation model. This means that
- The higher your income, the lower the child supplement.
- As soon as the income is high enough to cover the entire family's needs, the entitlement ceases completely.
- The exact amount is calculated individually, taking into account the cost of rent, heating costs, childcare and other factors.
Especially with two children, the transition zone is relatively wide - you don't immediately get no supplement if you earn a little more, but the amount gradually decreases.
💡 Important: Even if you are above the minimum threshold, your actual entitlement can vary greatly depending on where you live, the amount of rent and maintenance payments.
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What all counts as parental income?
Whether and how much child supplement you are entitled to depends largely on your family's income. But what exactly counts as "income"? Not every payment is taken into account - and some benefits only count in part. To help you keep track, we have compiled the most important types of income for you here.
This income is taken into account:
- Wages and salaries: Everything you earn from your work - including vacation pay, Christmas bonus and shift allowances.
- Parental allowance (pro rata): Depending on the amount and form of calculation, parental allowance can be partially offset.
- Unemployment benefit I: Is fully taken into account as income.
- Sickness benefit and maternity benefit: Also count as qualifying income.
- Maintenance payments: Both child support and spousal support are included.
- Pensions and benefits: For example, orphan's pension, half-orphan's pension or reduced earning capacity pension.
- Income from self-employment: Profits from self-employment also count.
- Rental or interest income: Income from renting or capital assets is also taken into account.
This income is not included:
- Child benefit: Explicitly does not count as income - this is important because it is a prerequisite for the child supplement.
- Child supplement itself: Is of course not counted twice.
- Housing benefit: Is considered a supplementary benefit and does not exclude KiZ.
- BAföG benefits from your children: If your children receive BAföG, this is generally not counted as your income.
The family benefits office checks your gross income, but takes certain deductions and lump sums into account before making the actual calculation. It is therefore quite possible that you are still entitled to a child supplement despite your supposedly "too high" income - especially if you have two children and high housing costs.
💡 Tip: Even if your income is generally taken into account, certain allowances are taken into account - for example for income-related expenses, pension contributions or travel costs to work.
How do I apply for the child supplement?
Applying for child supplement is easier than many people think - especially if you know which documents you need and what is important. The Family Benefits Office of the Federal Employment Agency is responsible for processing the application. They will check whether you meet all the requirements and how much you are entitled to.
This is how you proceed step by step:
- Perform online check (optional, but recommended)
Before you submit your application, you can use the Federal Employment Agency's KiZ-Lotsen for a non-binding preliminary check. The tool will show you in a few minutes whether a claim is likely.
- Apply online or in writing
You can conveniently apply for the child supplement digitally via the Family Benefits Office's online portal or download the form and submit it by post. The online application gives you all the important information and guides you step by step through the questions.
- Have important documents ready
For a complete application you need:
- your identity card or passport
- Child benefit number
- Proof of income (e.g. payslips for the last few months)
- Proof of rental and heating costs (e.g. rental agreement, utility bill)
- If applicable, BAföG notifications, proof of maintenance or notifications of other benefits
👉 Important: The information in the application must be complete and comprehensible. Income without proof will not be taken into account - or, in the worst case, will lead to rejection.
- Wait for processing time
It can take several weeks for your application to be reviewed. As soon as a decision has been made, you will receive written feedback - with approval for up to six months.
- Do not forget your follow-up application
As the supplement is only ever granted for a limited period, you must submit a follow-up application in good time to ensure continuous payment. Ideally, you should submit the new application before the current period expires.
An incomplete application will delay processing considerably. So make sure you don't forget anything - this saves time and nerves.
Conclusion: make the most of the child supplement
The child supplement provides noticeable relief for families with two children when income is tight and high housing costs are a burden. Therefore, carefully check your income, assets and allowances and use the child benefit, the supplement and housing benefit to make the most of the support from the state - without having to apply for citizen's allowance.
To give you room to maneuver today and build up long-term assets at the same time, you can also supplement state benefits with a tailor-made pension solution such as our child investments from Invest4Kids. Get advice and secure the financial stability your family deserves.
We'll help you find the right investment for your child!
- An additional $25,703 per child, thanks to our modern ETF strategy
- Find the perfect ETF investment for your child in a 30-minute video conference from the comfort of your own home.
- Sit back and watch your child's assets grow – our experts will take care of the rest.
