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Your 2023 Guide to Maternity Leave Benefits in CanadaJuly 14, 2023
Preparing to have a baby is a stressful time for many new parents. Besides the basic purchases for baby – new crib, car seat, stroller and clothing – you have to think about your financial picture and figure out what benefits you’re entitled to. You shouldn’t be stressed about money during this time in your life. It should be spent enjoying every minute with your newborn. That’s why we’re here to demystify some of the unknowns around maternity leave in Canada…
Table of Contents Contents
Maternity leave is a set period of time a biological or adoptive mother can take off from work, while pregnant and after giving birth, to raise her newborn child. During this absence from work, you will receive a government benefit (EI) and your employer is required, by law, to hold your position while you are away. The amount of time you get from your employer varies by province and territory.
How (and when) to apply for maternity leave
To receive the EI maternity and parental leave government benefit, you have to apply and meet a set of criteria, including accumulating at least 600 hours of insurable employment. You must fill out an online application that will take about 60 minutes to complete. Once you begin the application, you have 72 hours to complete it. It’s helpful to have the following information ready to submit:
- Details (names & addresses) of your employers in the 12 months, as well as the dates of employment
- Your address and social insurance number (SIN), plus any other parent if you’re sharing the benefits
- Your mother’s maiden name
- Bank details
- The expected or actual date of birth of your child
- If adopted, the date the child was placed with you and the name of the agency handling the adoption
Be sure to apply promptly after your last day of work. Waiting longer than 4 weeks after leaving work could risk losing eligibility for these benefits. It’s essentially the same process that you would follow for a regular EI claim.
How much can you get while on maternity leave
Your maternity and parental EI benefits will be key in planning your maternity leave finances. The general rule is this benefit pays out around 55% of your income, up to a maximum amount of $650 weekly. The province of Quebec is more generous, and you can get up to 75% of your income there. In both case you will be expected to pay tax on any benefits received.
These percentages of your income depend on how long you take a leave of absence. The first part of your absence will be your maternity leave and that can last for 15 weeks. Beyond those first 15 weeks, your benefit switches to parental benefits, which can last either the standard 35 weeks or extended into 61 weeks. If you choose the standard length, 50 weeks in total, you receive 55% of your average weekly insurable earnings. If you take the full 76 in total, then you will receive 33% of your average weekly insurable earnings.
To give you some idea of how much monetary benefit you could receive from the government, consider the maximum yearly insurable earnings amount is $61,500 (as of January 1, 2023). That means you would get a max of $650 per week under the standard 35 weeks parental benefit. Extended benefits would be $390 a week. Once you choose a duration, you cannot change mid-way.
EI maternity benefits:
Can be paid for a maximum of 15 weeks after actual date of birth.
EI standard parental benefits:
Can be paid for a maximum of 35 weeks.
EI extended parental benefits:
Can be paid for a maximum of 61 weeks.
Who is eligible for maternity and parental benefits?
While maternity benefits are only available to biological and surrogate mothers, who cannot work because they have given birth, parental EI benefits are available to both parents and can be shared. For example, a mother and partner can split the 35 weeks between them. So, in other words, a mother can go back to work after 10 weeks of parental leave and the other parent can use the remaining 25 weeks. This applies to both standard parental leave and extended.
Maternity Leave Differences in Each Province
While maternity leave is similar for each province, the biggest difference is how early they take leave, and how long they must have worked before to be eligible. The EI rules are standard, but the leave you can take unpaid depends on your province.
Maternity Leave in BC
In BC, you can get up to 52 weeks of maternity leave, after that another 17 weeks are available for parental leave. This gives you a total of 78 weeks.
Maternity Leave in Alberta
In Alberta, maternity leave is 16 weeks. That said, you can take up to 62 weeks with parental leave. In order to be eligible though, must have worked a consecutive 90 days with the same employer.
Maternity Leave in Saskatchewan
In Saskatchewan you can start your mat leave up to 13 weeks before the child is born, and no later than the day of birth. You get 19 weeks, but you if you don’t give written notice up to 4 weeks before, it can get reduced to 15 weeks.
Maternity Leave in Manitoba
In Manitoba, Mat leave is up to 17 weeks. However, there’s also the option to take parental leave after.
Maternity Leave in Ontario
In Ontario you can take up to 17 weeks of maternity leave. That said, if you’re still pregnant after the 17 weeks, you can take more time. You do have to take all of your allotted time, all at once.
Maternity Leave in Quebec
In Quebec you can take up to 18 weeks on maternity leave. You can start this leave on or before the birth.
Maternity Leave in PEI
PEI is similar to BC. You can take up to 78 weeks consecutively of maternity leave. For paternity leave, you can take up to 62 weeks.
Maternity Leave in Nova Scotia
In Nova Scotia, you can take up to 52 weeks, or one year for maternity leave.
Maternity Leave in New Brunswick
In New Brunswick, you can take up to 78 weeks of total leave.
Maternity Leave in Newfoundland and Labrador
In Newfoundland, you can take up to 61 weeks of parental leave. There are also 17 weeks of maternity leave. This gives you a total of 78 weeks.
Do low-income families receive more while on maternity leave?
If your annual income is determined by the government to be less than $25,921, you may be eligible to receive what is called the EI Family Supplement. This is an additional benefit that could increase your benefit rate to as high as 80% of your average insurable earnings. Either parent can receive this benefit, but if the recipient’s income rises the Family Supplement will decrease.
Preparing your finances for maternity leave
Losing over half of your income while on maternity leave can be a big adjustment and a shock to your finances. Especially when you consider having a child comes with a lot of new expenses – diapers, clothing, toys, professional photography, car seat if you drive – just to name a few.
Whether you’re having a baby with a partner or going it alone, try to work out a new monthly expenditure plan. If you’re with a partner, re-adjust how you balance your financial partnership. For example, if you were splitting the rent 50/50, they can take on a bigger percentage of that expense. Also, discuss with your partner ways you can save money. One easy solution is to target your entertainment budget. With a little baby in the house, you won’t be going to the movies or the nightclub as much anymore.
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