What you need to know about parental leave and EI in Canada

There’s so much to plan and prepare for when you’re due to have a baby. That includes choosing who'll take time off to care for your little one, if you’re in a relationship. In Canada, you can apply for financial help during your maternity or parental leave, to cover some of the lost earnings while you’re working on being a new parent.

What you need to know about parental leave in Canada

Parental leave is time off work while your employer holds your job open for you. If you're having a baby or adopting a child, you and your partner can apply for parental leave. Each province has laws that protect your right to this time with your baby. Parental leave can be used solely as maternity or split between you and your partner, if you have one.

Whether you're pregnant or thinking about getting pregnant, you'll want to figure out how much parental leave your family is able to take, and how you’d like to divide it.

Do I qualify for parental leave benefits?

Parental leave benefits are paid out by the federal government through Employment Insurance (EI), or QPIP if you live in Quebec.

As a rule, you must have worked 600 insurable hours in the year before you claim parental leave benefits, in order to claim them. You must have contributed to EI during that same year.

If you're self-employed you can choose to pay in to EI. You must do so for at least one year before you apply for parental leave benefits. The Service Canada Opens a new window website details the most up to date information on this.

The basic formula for standard parental benefits, is 55 per cent of your average weekly earnings, up to a max amount. The max amount is set each year, so you'll need to check with Service Canada to find out the exact figure.

Parental leave benefits last for up to 40 weeks, but one parent cannot receive more than 35 weeks’ worth. The benefits must be claimed within 52 weeks of the birth or adoption of your baby.

You also have the option of choosing to take Extended Parental Benefits instead. Again, these apply to both parents and can be shared as you wish, but pay you only 33 per cent of yours or your partner's average weekly insurable earnings up to the yearly limit. These benefits must be taken within the 78 weeks after the birth or adoption of your child, and can last for up to 69 weeks. (One parent cannot receive more than 61 weeks’ worth.)

Parental leave benefit is taxable income. That means federal and provincial taxes will be deducted from your payment. You might be able to receive a higher benefit rate (the Family Supplement) if you receive the Canada Child Benefit (CCB).

You can find the most up to date details about whether or not you qualify for the benefits, and the amount of money you'll be given for parental leave benefits, on the Service Canada website for Employment Insurance Opens a new window . The EI phone number is 1-800-206-7218.

When and how do I apply for parental leave benefits?

Maternity leave can apply to biological and surrogate mothers, for a maximum of 15 weeks. A further 35 weeks of parental benefits are available to biological, adoptive, or legally recognized parents. This time off can be shared between two parents.

If you're working at the moment and plan to take parental leave benefits, you'll need to apply for them as soon as you stop working.

You can apply online at Service Canada Opens a new window . In order to apply, you'll need to get a Record of Employment (ROE) from your employer. If your partner is applying for parental leave benefits right away, you can apply at the same time.

When you apply, you'll also need your Social Insurance Number (SIN), personal identification and bank details (to ensure your payment is made by direct deposit to your account).

Once you apply, you must wait two weeks without pay before getting any money. If you have a partner, and both of you will be taking leave, only one of you must serve this two-week waiting period. You can take these two weeks off even though you don't get paid. After you apply, it can take up to a month for your application to be processed. But, once it has been processed, you'll receive your benefits pay from the date that you applied.

Apply for parental leave as soon as you stop working to get your max benefits. You can only claim parental benefits within the year (52 weeks) after your baby's birth or placement with you.

There are exceptions. For example, if your baby is hospitalized for some reason, you may qualify for time beyond the year after your baby's birth.

What other benefits might be available to us?

As well as the federal parental leave benefits, maternity leave benefits and sick leave benefit programs, your employers may offer extra money, called a "top-up". This is a figure you are given on top of the basic amount from the employment insurance program. It tends to be an amount that would take you to a certain percentage of your pay. For example, you may be offered a top-up that takes you to 75 per cent of your pay when you combine your parental leave money from EI and the amount from your company.

Be sure to read the fine print or ask lots of questions from HR. Some employers have clauses if you receive their benefits, like saying you’ll return to work after your leave for a certain amount of time, or else having to pay back the money you received as a top-up.

Once you figure out how much you'll get from EI and how much you might get from your employers, you might want to discuss your options and decide who will take leave, when.

For Quebec Residents-The Quebec Parental Insurance Plan

The Province of Quebec provides maternity, paternity, parental and adoption benefits to residents of this province. (Other types of EI benefits remain available to Quebec residents, though.) The Quebec Parental Insurance Plan (QPIP) is administered by the Ministry of Employment and Social Solidarity of Quebec (MESSQ).

You can learn more about the QPIP, and apply for QPIP benefits, by using the QPIP online services Opens a new window or by calling the customer service centre (1-888-610-7727).

Don’t forget to download our free app for a day-by-day guide to your pregnancy. My Pregnancy & Baby Today gives you all the expert advice you need, right at your fingertips.

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