Making sense of mat leave

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Get the lowdown on maternity leave benefits

By Kira Vermond

Just talk to any of our American friends and faster than it takes to blurt out, “Six weeks! You only get six weeks of mat leave?” you’ll realize what a fabulous maternity and parental leave  program we enjoy in Canada. You probably already know that having the option to take a year off work to bounce, burp, and bathe our babies is a godsend for many mothers who couldn’t imagine going through labour and delivery, only to don a skirt, grab a breast pump, and head back to the office a few weeks later. But how does mat leave work, anyway? Between employer top-ups (nice) and long waits for that first EI cheque (not so nice), what exactly should you expect when you’re expecting?

Know your terms

Let’s start with the difference between two concepts: leave and benefits. Put simply, “leave” is the period of time parents can take away from their jobs without pay and still be guaranteed a job to come back to. The amount of time you can take off depends on the province or territory you live in as well as a whole host of eligibility requirements you must meet. For example, Albertans receive 15 weeks of maternity leave (just for mom) and 37 weeks of parental leave (to be taken by either parent). Those lucky enough to be living in Quebec, however, can be forgiven for acting smug. They receive 18 weeks of mat leave and 52 weeks of parental leave. (For more information about what each province supplies in terms of leave and benefits, check out Hrsdc.gc.ca.) Meanwhile, “benefits” refers to the actual money moms and dads receive from Employment Insurance (EI) or from the Québec Parental Insurance Plan (QPIP) in Quebec. Here’s how to remember what’s what: Leave gets you the time off. Benefits show you the money.

How much do I get?

We’d love to say that you will be able to take 52 weeks off and have the same amount of money rolling in as you did while you were working. Unfortunately, that’s not usually the case. Instead, when you have a  baby, you file your claim for EI or QPIP benefits and eventually you’ll receive a cheque or an automatic deposit of 55 percent of your average insured earnings up to a maximum payment of $447 per week. (So if you’ve been raking in big money—heck, even medium money—before starting a family, be prepared for a sizable drop in income.) The maximum payment period for maternity benefits outside Quebec is 15 weeks, while parental benefits last up to 35 weeks. Maternity benefits, not surprisingly, are doled out only to biological moms. Parental benefits, however, are more flexible since they can be split between mothers and fathers or partners any way that works for them. It’s a nice option if three months into mat leave you realize you’d rather go back to work and he’d rather take some time off for a bit of daddy-daughter time. Just remember to track the amount of time you’ve worked to ensure you’re actually eligible for EI. To qualify, you need to have worked for at least 600 hours in the last 52 weeks, or since the last time you made an EI claim. Although that’s only about 15 weeks of full-time work, more than one mom who has gone back to work part-time only to get pregnant again has struggled to log enough hours before the next baby comes. So remember to do your math. Quebecers looking for QPIP benefits have it easier. They only need to make $2,000 in insurable income during the reference period—normally 52 weeks—and pay their QPIP premiums.

They can also choose between a basic plan and a special plan:
Basic plan
• Moms receive 70 percent of their earnings in maternity benefits for 18 weeks
• Parental benefits cover seven weeks at 70 percent, followed by 55 percent for 25 weeks
Special plan
• Moms receive 75 percent of their earnings in maternity benefits for 15 weeks
• Parental benefits cover 75 percent for 25 weeks
• Adoptive parents receive benefits worth 28 weeks at 75 percent

The basic plan is a good bet for families willing to live on less, but receive money for a longer time. The special plan works for adoptive families and for those who anticipate going back to work earlier. Both plans offer dads an extra paternity benefit equalling 70 percent of the father’s earnings for five weeks (basic plan) or 75 percent of his earnings for three weeks (special plan).

How do I apply?

To apply for EI benefits, visit a Service Canada Centre or apply online (at Servicecanada.gc.ca) the moment you stop working. Trust us on this. You don’t want to hang around at home for those two weeks before the delivery date. Take action, then you can go back to puttering and nesting. For QPIP benefits, apply on the QPIP website (Rqap.gouv.qc.ca) or call its customer service centre at 1-888-610-7727.

Excerpted from Earn, Spend Save: The savvy guide to a richer, smarter, debt-free Life by Kira Vermond © 2010 by Rogers Publishing Limited. Excerpted by permission of John Wiley & Sons Canada, Ltd. All rights reserved.