Parenting & Family

18-month Parental Leave

  • Last Updated:
  • Apr 24th, 2017 12:17 pm
[OP]
Newbie
Dec 19, 2005
72 posts

18-month Parental Leave

The Liberal government said in its recent budget that it will give employees the option to extend parental leave to 18 months​ from one year. The government has yet to pick a start date for the change. Parents won’t get more money from employment insurance benefits​ when the change kicks in​, but can get reduced payments over an 18-month period instead of a year.


http://www.ctvnews.ca/politics/canada-i ... -1.3337772


Do you think the above will apply for those who are expecting to become parents before January 2018 (should this be the go live date)? if no EI is claimed (taking just vacation days) - would this be a good stradegy to "stretch" the waiting period to be eligible under the new law?
27 replies
Sr. Member
Nov 13, 2013
760 posts
255 upvotes
OTTAWA
Why take 18 months when you actually get less money? Unless you want to spread out the money to lower your tax bill a bit but this will depend on your bracket and the timing of your leave.
[OP]
Newbie
Dec 19, 2005
72 posts
I'm aware that 18 months will spread out the payments. I'm going to have baby twins and would like to spend as much as possible time with them while knowing my job is gurantted. Regardless both of us can get a top up from workplaces so we can be sharing the parental period. I'll feel more comfortable keeping an eye on babies for their first 18 months.
Deal Addict
Aug 19, 2013
2394 posts
974 upvotes
There is a difference between the benefits you receive (the money) and when your job is protected. I'm thinking even if you can't get the benefits paid over 18 months you would be protected from losing your job. If that's the the case you could just put some in savings and take the last 6 months off unpaid.
Sr. Member
Nov 13, 2013
760 posts
255 upvotes
OTTAWA
Protecting your job makes sense and 18 months is a much better time to go back then 12 months.
Will your company really pay top up for 18 months? I had assumed that companies who pay top ups would limit it to the current 12 months.
Member
Feb 26, 2016
466 posts
77 upvotes
economically speaking, if you take the 18months off, you get 90% of the EI that you would have received if you had instead taken 12 months off. Benefit is presumably that the your job should be guaranteed while you're on matleave for 18 months and daycare is normally cheaper once the child is 18 months.
Deal Addict
User avatar
Nov 13, 2010
4757 posts
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Scarborough
how does the top up work? How do u apply for it for maternal leave? (asking for a friend whose wife is going to be off on mat leave).
She's just p/t working in retail. Not sure if retailers offer the top up
Moderator
User avatar
Jul 5, 2004
22255 posts
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apnayloags wrote:
Apr 13th, 2017 7:53 pm
how does the top up work? How do u apply for it for maternal leave? (asking for a friend whose wife is going to be off on mat leave).
She's just p/t working in retail. Not sure if retailers offer the top up
It's a workplace benefit that some employers offer
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Newbie
Mar 15, 2010
54 posts
3 upvotes
I think the 18 months mat/parental leave is a smart move, especially for parents with more than one kid. For example, if a family already have a toddler who attends a daycare that cost $800 a month, now with the extra 6 months leave, parent will have the choice to pull the toddler out from daycare, and the daycare cost savings will compensate the less payment from mat/parental leave pay. The parent who stay home will get to spend more time with both children while saving money... win win!
I think for top ups from employer, they probably will be pro-rated over 18 months.
Member
Dec 25, 2010
255 posts
22 upvotes
Toronto
Oh man! wrote:
Apr 15th, 2017 10:46 pm
I think the 18 months mat/parental leave is a smart move, especially for parents with more than one kid. For example, if a family already have a toddler who attends a daycare that cost $800 a month, now with the extra 6 months leave, parent will have the choice to pull the toddler out from daycare, and the daycare cost savings will compensate the less payment from mat/parental leave pay. The parent who stay home will get to spend more time with both children while saving money... win win!
I think for top ups from employer, they probably will be pro-rated over 18 months.
My thoughts exactly.

I'm just going back to work after parental leave - which I had to extend because we didn't get daycare lined up for the 12 month due date. Luckily it only ended up being an additional six weeks and my employer has been very accommodating. And this is after being on a waitlist for 12 months at a daycare where we already have sibling priority with a three year old who already attends.

If I had 18 months instead, this process of getting childcare in place would have been a lot less stressful and moderately less expensive.

I'd definitely consider taking a lower EI payment over a longer period of time.
Sr. Member
Nov 13, 2013
760 posts
255 upvotes
OTTAWA
D_J_M wrote:
Apr 16th, 2017 5:26 pm
My thoughts exactly.

I'm just going back to work after parental leave - which I had to extend because we didn't get daycare lined up for the 12 month due date. Luckily it only ended up being an additional six weeks and my employer has been very accommodating. And this is after being on a waitlist for 12 months at a daycare where we already have sibling priority with a three year old who already attends.

If I had 18 months instead, this process of getting childcare in place would have been a lot less stressful and moderately less expensive.

I'd definitely consider taking a lower EI payment over a longer period of time.
I don't understand this argument. Take 12 months of EI then 6 months unpaid and you are at the same point as with the new 18 month plan.
Deal Addict
Dec 5, 2006
4229 posts
373 upvotes
Markham
I like 18 months idea. When we had my son, we had to send him to daycare at month 10 so he can adjust. He at least got fever once a month and my wife and I used all our vacations on this.
Member
Dec 25, 2010
255 posts
22 upvotes
Toronto
fogetmylogin wrote:
Apr 16th, 2017 6:16 pm
I don't understand this argument. Take 12 months of EI then 6 months unpaid and you are at the same point as with the new 18 month plan.
For me, it's part job protection part cash flow.
Deal Guru
Aug 2, 2001
14175 posts
4635 upvotes
fogetmylogin wrote:
Apr 16th, 2017 6:16 pm
I don't understand this argument. Take 12 months of EI then 6 months unpaid and you are at the same point as with the new 18 month plan.
If parental leave is 18 months, your job is guaranteed for you when you are done. If you ask to take unpaid leave, you may be declined and not have a job to come back to.

While someone further along in their career may be OK with this risk, someone just starting out or with fewer marketable skills might not be able to take that risk.
Deal Addict
Dec 5, 2006
4229 posts
373 upvotes
Markham
Are you guys sure there is job guarantee during maternity leave?

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