Anytime I post about paid parental leave I’m always surprised by the feedback. So many people comment on how the government couldn’t afford to provide that benefit and how many people would take advantage of it.
I had a little Aha Moment and realized that on the surface maternity benefits look like free money handed out to anyone claiming they had a baby. So I thought I’d put together a post on how Canadian maternity leave works.
Canadian Maternity Leave 101
The quick and dirty summary of Canadian maternity leave is that the government provides, at minimum, partial income to a family for almost a year after a baby is born, as well as a guarantee that your job will be waiting for you at the same pay when you return. Pretty different from the U.S., where you typically get (maybe) 12 weeks unpaid.
How does Canada make this happen?
The maternity leave portion is required by the Canadian labour code. Specifically, women who have just given birth get up to 15 weeks of paid maternity leave, which can start as early as twelve weeks before their due date.
At the end of the leave, Mom’s job must be waiting for her with the same pay and benefits.
The Parental Leave Policy
Separate from maternity leave is a 35-week parental leave that can be taken by either parent, and the time may be split between the two parents.
Parental leave benefits are also granted to families who have had a child placed with their family through adoption.
There are two types of parental benefits folks can apply for: standard parental leave and extended parental leave. Here’s the breakdown of what each of those looks like:
Standard Leave
- Up to 35 weeks of standard parental benefits
- Up to $668 per week
- Can be extended to 40 weeks if being shared with another parent, but either parent can’t take more than 35 weeks.
Extended Leave
- Up to 61 weeks of extended benefits
- Up to $401 per week
- Can be extended to 69 weeks if being shared with another parent, but either parent can’t take more than 61 weeks.
Tack that 35+ weeks of parental onto the 15 weeks of maternity leave and someone can be home with babe for a whole year or more.
Collecting leave benefits (cash money) while you’re out is related to Employment Insurance (EI).
So no, it’s not free money from the government — Canadians pay into their own leave every month, and then you can basically cash out your insurance policy when you have a baby.
To be eligible for EI benefits you need to:
- Be enrolled in Employment Insurance (if you work at a company this happens automatically.)
- Meet the criteria for EI, e.g. be the biological, adoptive, or legally recognized parents of a newborn or newly adopted child (I could not claim my taco bowl belly as a baby and get away with it.)
- Have your weekly wages reduced by more than 40% because of that baby at your house (You can’t claim your whole paycheck while you are off, however, some companies will give you a top-up which is a total perk and a way many employers sweeten the pot to score great talent.)
- Have worked 600 insurable hours in the year before you claim the leave benefits (You can’t show up on your first job, the first day of work and say, “I’m giving birth tomorrow. See ya, dorks!”)
If you qualify for EI, you, the employee, pay into it with every paycheck. Also, there is a maximum benefit you can receive. The amount you will receive is equal to 55% of your average weekly pay, up to a maximum amount set by the government.
Extra Details About Canadian Parental Leave
Here are some extra details above the basics to consider.
- If you live in Québec, you get a longer parental leave at a higher rate, thanks to the Québec Parental Insurance Plan (QPIP). Maternity benefits in Québec last for up to 18 weeks at 70% of a parent’s average weekly earnings. Paternity leave is exclusive to dads and lasts for up to 5 weeks at 70%. There are two options for parental leave: the basic plan (7 weeks at 70%, followed by 25 weeks at 55%) and the special plan (25 weeks at 75%).
- It’s a good idea to check your benefits coverage before going on maternity leave. Your leave could impact your dental plans and medical coverage.
- Talk to your HR folks about how maternity and parental leave impacts your pension plan. Your contributions to your pension may or may not continue while you’re off.
- You may also want to check your work’s policy around vacation time. Depending on where you work and the province or territory you live in, you may or may not continue to accrue vacation time while you’re on leave.
- You can collect maternity and parental leave if you’re self-employed, but you’ll need to opt into the EI Special Benefits for Self-Employed People. You have to be enrolled for at least 12 months before you can start collecting benefits, so it’s a good idea to enroll earlier rather than later if a baby is on your horizon. You have to meet a minimum threshold for self-employed earnings, which can change from year to year.
- If you have suffered a miscarriage after 20 weeks, you are still eligible to receive up to 15 weeks of maternity benefits.
Let me sum up maternity leave in Canada
So basically, if you are enrolled in Employment Insurance, your Canadian employer will deduct money from your paychecks until your annual earnings reach the maximum amount.
When you decide to take maternity leave, you can tap into the money you have put aside. If you go back earlier, those reserves you’ve saved remain untouched.
It’s not a perfect system, but I would argue that it’s a pretty good one.
Not only do parents get to spend more time with their kids if they choose to, but freelancers and part-time workers are constantly employed by maternity leaves.
We all deserve this
Honestly, I think many American families have just come to accept that this is the way it is – I’ll read comments like, “Well, it was my choice to have a baby” – but I really do think that you deserve better.
And I don’t just mean as a family; I mean as a country. You guys are creating the people who will run your country and wipe our old bums one day, and I think parents should have more support when it comes to raising them.
That’s just my Canadian opinion, though. I’m still jealous of your Targets, Trader Joe’s and inexpensive alcohol, so I’m not about to get all smug about it.
This great TED Talk from Jessica Shortall, The American Case for Paid Maternity Leave, does a great job of further explaining why it’s so important. It’s worth a watch.
Related: Your First-Day-Back-At-Work Breast Pump Bag