Kindergeld vs. family 500+

The Polish state, following the example of many countries, has implemented the 500 plus family program. By design, the program was intended to support family and child spending. As of July 1, 2019, the 500+ child care benefit is payable for each child up to the age of 18. years of age, regardless of the income earned by the family. Family benefits, and this is the 500 + and Kindergeld benefits have a strictly regulated order of payment. Priority is always given to the country in which we work. Let’s imagine the situation that we live in Germany and receive Kindergeld benefits.

The question that arises here is whether we will be able to benefit from the 500+ program ?

To discuss this issue, it should be noted that the 500+ family program like Kindergeld belongs to the European Social Security System. The social security system regulates the relationship between the benefits collected from two different countries. In other words, it determines when a citizen is entitled to collect benefits from both Poland and Germany. Receiving the allowance from two different countries is strictly defined by clear regulations and income criteria. To sum up, the Family 500+ program or Kindergeld benefits have a defined and regulated payment situation.

Imagine a situation in which the husband works in Germany and the wife takes care of the children in Poland, but does not work. In this situation, Kindergeld benefits are due, because the wife is not working. In a situation where the wife would be working in Poland then she would first receive benefits in the 500 + program, because in this situation the Polish government has priority. Of course, if we choose the 500 plus benefit, we can apply for Kindergeld minus the benefit from Poland in Germany. On the other hand, if you only receive German benefits, you will get nothing in Poland, as the Polish benefit is smaller than the German one.

In Germany, the Kindergeld benefit is paid by Familienkasse. Even if 500 + will not be due to us, because the country of priority will be Germany, it is worth applying every year. And here the question may arise why. After all, Familienkasse does not know our family situation and can deduct 500 + for the second child, and from July 1, 2019. also for the first. When deducting 500+ Familienkasse must issue a decision. It informs us that the decision is “temporary” and if we present a decision denying the Polish benefit, it often turns out that we have been paid too little benefit and we are due to compensate Kindergeld to the full amount.

Familenkasse has always reduced the Kindergeld by 500 zloty per euro for the second and subsequent children informing of its decision, at the same time informing that such a benefit has come into effect and that an application must be filed in Poland. We could therefore assume that Familienkasse will start from 01.07.2019. Pay a lower allowance for the first child. Therefore, it should be noted that it is in the interest of anyone working in Germany and receiving benefits to apply for all children in order to continue receiving benefits in full.

It is in the interest of anyone receiving benefits from Germany to apply for all minor children in the family in order to continue to receive the maximum amount of benefits whether from one country in full or from 2 countries in a reduced form from one country and a differential allowance from the other.


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