Compensation for caring for relatives - rights, entitlements, benefits and support for family caregivers

Definition and objective of compensation

Compensation for caring for relatives includes various financial and organizational benefits to which carers are entitled for their personal and time commitment in home care. The aim is to support the often unpaid care work through targeted measures such as care allowance, pension insurance contributions and respite services and support.

It is intended to help enable care in the home environment without caregiving relatives financial hardship or professional difficulties. The compensation is therefore both a material and non-material recognition of the socially significant care provided.

Who is considered a family caregiver?

Family caregivers are persons who regularly care for a person in need of care in their home environment on a non-professional basis. These can be family members such as childrenspouses, siblings, but also children-in-law, grandchildren or close caregivers.

The care must comprise at least ten hours per week and be spread over at least two days of the week. Friends or neighbors can also be recognized as caregivers under certain conditions, provided they provide the care on a permanent basis and to the extent required.

Care in the family: between responsibility and recognition

Caring for a family member often involves a deep emotional commitment. Many relatives consciously decide against placement in a care facility and opt for care at home in order to enable the person concerned to live in a familiar environment.

However, this decision is accompanied by major challenges: time pressure, psychological pressure, physical exhaustion and financial losses. It is therefore all the more important that the legislator provides tangible relief through targeted benefits. Compensation for caring for relatives helps to make this commitment visible and appreciated, while at the same time offering concrete support in everyday life.

Legal basis for compensation for caring for relatives

Long-term care insurance as a central institution

Statutory long-term care insurance was introduced in 1995 as the fifth pillar of social insurance. Its aim is to provide social protection against the risk of needing long-term care. It ensures that people in need of care receive benefits regardless of whether they are cared for at home or in a care facility.

It is the most important basis for family caregivers, as it results in entitlements such as care allowance, respite care benefits and pension insurance contributions. Everyone who has statutory or private health insurance is automatically covered by long-term care insurance. Contributions to long-term care insurance are calculated on the basis of income and therefore contribute to the financing of long-term care on a solidarity basis.

The role of the long-term care insurance fund

The long-term care insurance fund is organizationally connected to the health insurance fund and is responsible for all matters relating to long-term care benefits. It accepts applications, organizes the assessment by the Medical Service (MD)decides on the level of care and provides the corresponding benefits.

In addition to financial subsidies, long-term care insurance funds also provide advice and guidance for family caregivers, for example through individual care advice, care courses or the provision of aids. Close cooperation with the care insurance fund is essential for family caregivers in order to make effective use of all available support.

Statutory regulations on care leave and family care leave

In order to improve the compatibility of care and work, the legislator has created two central regulations: care leave and family care leave.

Care leave: Employees can take up to six months off work in full or in part if they are caring for a close relative at home. Although this time is generally unpaid, an interest-free loan can be applied for from the Federal Office of Family Affairs and Civil Society Functions.

Family care leave: This allows partial leave from work for up to 24 months, with a minimum working time of 15 hours per week. An interest-free loan is also possible here. Both models offer legal protection against dismissal during the leave period and strengthen the position of family carers in working life.

In addition, there is an entitlement to short-term absence from work for up to ten days if a care case suddenly arises, during which time the so-called care support allowance can be claimed as a wage replacement benefit.

Requirements for benefits for home care

In order to be able to make use of various care aids for home care, certain requirements must be met.

Need for care and assessment by the MDK

In order to be able to claim benefits from long-term care insurance, the person in need of care must have a recognized need of care must be present. This means that they are permanently restricted in their independence and ability to cope with everyday life. The basis for determining this is an application to the relevant long-term care insurance fund.

After the application has been submitted, the long-term care insurance fund commissions the Medical Service (MD, formerly MDK) to carry out an assessment. This usually takes place at the home of the person in need of care and assesses, among other things:

• Mobility
• cognitive and communicative skills
• Behavioral and psychological problems
• Self-sufficiency
• Coping with and independently dealing with illness- or therapy-related requirements
• Organization of everyday life and social contacts

The result is a care level from 1 to 5. Only with an officially determined care level is it possible to claim care services.

Care levels: From care level 1 to care level 5

The system of care levels was introduced in 2017 as part of the Care Strengthening Act and replaces the previous care levels. It reflects the extent to which a person's independence is impaired.

Care level 1Minor impairment of independence

Care level 2Significant impairment

Care level 3Severe impairment

Care level 4: Severe impairment

Care level 5Severe impairment with special requirements

The higher the care level, the more extensive the benefits available, both for the person in need of care and for the family members providing care.

Entitlement from at least care level 2

Caregiving relatives have from care level 2 or higher are entitled to care allowance, pension insurance benefits, respite care as well as respite and short-term care.

Care level 1 however, only entitles to certain basic benefits such as the relief amount of 131 euros per monthbut not to the care allowance.

The level of care therefore forms the basis for the type and amount of support. It is important that the care is provided in the home environment and that at least ten hours per week are regularly spread over two or more days. In addition, the care must not be provided for gainful employment.

Carers who meet these requirements can apply to the care insurance fund for appropriate benefits. It is advisable to seek additional help from care advice centers or care support points to find the right form of support and to go through the procedure correctly.

Care allowance: Cash benefit for family carers

Care allowance according to care level

Care allowance is one of the main cash benefits for family caregivers in the context of home care. It is paid if the care is provided by a person who is not gainfully employed, i.e. usually a relative or close relative. The prerequisite is that the care level is at least 2 and no or only partial use is made of outpatient care services.

The care insurance fund pays the monthly care allowance directly to the person in need of care, who in turn can pass it on to the family member providing the care. The amount of the care allowance depends on the care level:

• Care level 2: 347 euros per month
• Care level 3: 599 euros per month
• Care level 4: 800 euros per month
• Care level 5: 990 euros per month

People in need of care with care level 1 do not receive a care allowance, but can use other benefits such as the relief amount to pay for affordable services.

Table: Amount of care allowance per care level (as of 2025)

Claim and payment by the long-term care insurance fund

In order to receive care allowance, the person in need of care must submit an application to the relevant care insurance fund. This application can be made informally, but should be submitted as early as possible, as care allowance is only paid from the month in which the application is submitted.

After the application, an assessment is carried out by the Medical Service, which determines the level of care. As soon as a care level 2 or higher is determined, the care allowance is paid automatically.

Important: The care allowance is always paid to the person in need of care, not directly to the family member providing the care. However, an agreement to pass on or earmark the allowance within the family is common and possible. In addition, every six months (for PG 2 and 3) or every three months (for PG 4 and 5) a mandatory care consultation for quality assurance purposes. This consultation is a prerequisite for the continued payment of the care allowance.

Pension entitlements through care work

Family caregivers make a valuable contribution to society, which is also recognized by the legislator in that under certain conditions pension insurance contributions are paid for them. This is done through long-term care insurance and is a significant part of the compensation for caring for relatives.

Carers are liable for pension insurance if:

• they have one or more persons in need of care with at least care level 2
• in a domestic environment
• At least 10 hours per week
• regularly at least two days a week
• non-commercial

maintain.

In these cases, the long-term care insurance fund automatically pays contributions to the statutory pension insurance. The amount of the contributions depends on the level of care and the amount of time spent providing care.

Requirements for pension points

By paying contributions, carers earn pension points that will later have a positive effect on their own old-age pension. Depending on the level of care and the extent of care, one to over two earnings points can be collected per year, which corresponds to several hundred euros more pension per month.

The exact pension points depend on:

• the care level of the person being cared for
• the care level (amount of care time per week)
• the receipt of care allowance (sole care) or a combination with benefits in kind (care with support).

Example: A carer who looks after a relative with care level 4 alone can earn up to approx. 1.5 pension points per year. This corresponds to an additional monthly pension entitlement of around 55 to 60 euros.

Pension protection for carers

The purpose of pension insurance is to protect carers from poverty in old age in the long term. There is no need to register separately to receive these benefits - the care insurance fund automatically registers the carer with the pension insurance fund as soon as the requirements are met.

It is important that the carer works a maximum of 30 hours per week in addition to providing care. If this limit is exceeded, the pension insurance obligation for caregiving no longer applies.

Recognition under pension law is therefore a key instrument for rewarding the social contribution made by family carers in old age. In order to receive care allowance, the person in need of care must submit an application to the relevant care insurance fund. This application can be made informally, but should be submitted as early as possible, as care allowance is only paid from the month in which the application is submitted.

Relief amount: additional support in everyday life

131 euros per month: who can use it?

People in need of care with a recognized care level - from care level 1 - are entitled to the so-called relief amount of 131 euros per month. This long-term care insurance benefit is intended to provide support in everyday life and to relieve the burden on family caregivers.

It is important to note that the relief amount is not paid out in cash, but can be used for specific recognized services. It is provided by the care insurance fund on a monthly basis and can also be saved for months, provided it does not expire at the end of the year (exception: carried forward to the following year with special justification).

Respite services at a glance

The relief amount may only be used for qualified services. These include, among others:

• Care and activation services (e.g. by recognized service providers)
• Help with household chores (e.g. shopping assistance, cleaning)
• Everyday companionship and support with appointments or leisure activities
• Day care or night care facilities (pro rata)
• Services provided by offers for support in everyday life recognized under state law

Please note: The relief amount is not a lump-sum payment to the family carer, but is settled directly with the service providers or reimbursed after submission of the corresponding invoices.

Integration of household-related services

Many care households use the relief amount to organize household-related services to relieve the burden on family carers. This can be, for example, a cleaning assistant who is employed by a recognized provider, or an everyday helper who cooks together, accompanies or runs simple errands.

In order to make use of the service, the provider must be approved by the care insurance fund or recognized under state law. It is therefore advisable to consult with the care insurance fund or consult a list of approved providers before concluding a contract.

Practical tip: If the 131 euros per month are not used, the money can still be used until June 30 of the following year - after that it expires. So it's worth planning in good time!

Temporary care: relief for hourly or daily time-outs

Preventive care is an important benefit for family caregivers who are temporarily unable to provide care for health, professional or private reasons. In such cases, the care insurance fund covers the costs of substitute care, for example by an outpatient care service, another relative or a professional substitute.

Prerequisites for utilization:

• The person in need of care has at least care level 2.
• The six-month pre-care period does not apply, meaning that benefits can be claimed from the first day the care degree is awarded.
• The caregiver is temporarily absent, e.g. due to illness, exhaustion or vacation.

Short-term care and night care as relief options

Family caregivers are often under great strain both physically and emotionally in everyday care. In order to enable phases of recovery, rehabilitation or bridging, care insurance provides various temporary forms of care.

Two important options are short-term care and night care. They not only offer protection against excessive demands, but also ensure quality-assured care for the person in need of care in special situations.

Short-term care: temporary inpatient care

Short-term care is an important supplement to home care if a person in need of care cannot be cared for at home temporarily. This can be the case, for example, after a stay in hospital, during the recovery phase of family caregivers or in crisis situations.

In this case, the long-term care insurance fund covers the costs of inpatient care in an approved facility for a maximum of 8 weeks or 56 days per year.

Night care and its importance for relief

Night care is particularly helpful when people in need of care require extra care in the evening or at night. This includes people with dementia, sleep disorders or night-time restlessness.

DO YOU NEED
NURSING AIDS?

Your individual care package, costs covered by your care insurance fund.

SECURE YOUR PACKAGE NOW

Long-term care insurance supports night care as part of benefits in kind, provided it is provided in an approved care facility. Alternatively, an outpatient care service can also provide care during the night.

Night care can be used either regularly (several times a week) or as needed. It can be combined with the care allowance or other respite services and can make a significant contribution to the recovery of the family carer.

Merging budgets: short-term and respite care

A decisive advantage for those in need of care and their relatives is the flexibility provided by the pooling of budgets:

• The annual budget for respite care (€1,612) and short-term care (€1,774) can be used in combination in future.
• This means that a total of up to €3,386 per year is available, which can be allocated individually to short-term or respite care.
• This means that the relief can be better adapted to the personal situation and actual needs.