Berlin, Sept. 29 (Reuters): German lawmakers today approved plans to grant parents up to 14 months of paid leave to look after their newborns, in a move designed to boost Germany’s falling birth rate and promote flexible working conditions.

Under new rules, parents who decide to reduce their working hours to look after their newborn child will be eligible to receive two thirds of their net monthly salary, up to a maximum of 1,800 euros.

The rules apply to mothers or fathers.

Launched by conservative family minister Ursula von der Leyen, a 47-year-old mother of seven, the measures are intended to encourage younger people to take time out from pursuing their careers to have children.

“For the first time, fathers have an honest chance to take time for themselves to enjoy priceless months in the development of their children,” von der Leyen told parliament.

Germany’s birth rate fell to its lowest level in 2005 since World War II and the country has one of the lowest rates in the European Union.

Some experts have warned that unless the demographic trend reverses itself, the German economy could go into terminal decline, with pensions and healthcare costs soaring as the average age creeps higher and higher.

The maternity or paternity leave payments apply to parents of children born on or after January 1, 2007, and will be paid for 12 months from the child’s birth.

This would rise to 14 months if the task is shared by both parents, on condition that the father puts in at least two months of childcare in that time.

A parliamentary majority formed mainly by the governing coalition of conservatives and Social Democrats approved the bill in the lower house, or Bundestag.

The Opposition Greens and the Left Party opposed the bill.

The measures will cost the government around 3.5 billion euros next year, rising to 4.4 billion in 2008.

The upper house, the Bundesrat, is expected to give approval in November.