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Updated on November 14, 2024
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Parental leave allows parents to take time off work to bond with and care for their newborns without losing their jobs. However, navigating parental leave as a newcomer to Canada can be complex, with different types of leave and eligibility criteria to consider. This guide breaks down everything you need to know about maternity leave and parental leave in Canada, from maternity and parental leave options to eligibility requirements and income support.
Canada’s parental leave system provides parents with the opportunity to take time off work following the birth or adoption of a child. The federal Employment Insurance (EI) program offers income support, with two main types of leave available:
This flexibility is especially helpful for immigrant families who are often navigating other life changes, including moving up the career ladder or securing stable housing. With rising housing costs and high inflation, many families, especially newcomers, find this flexibility in leave time crucial for managing their work and family responsibilities.
We wanted to spend as much time with our child as possible after they were born. We knew the maternity and paternity leave options from EI would help us achieve this. As newcomers with limited support systems, having the space to take care of our child was wonderful. The fact that the leave is applicable for both parents is a huge win, too. Also, being able to split the leave duration over the course of a first year of our child life made it work for our needs.
We had a few questions during the application process and the EI agents were very friendly, and easily accessible through phone calls. They really made planning for the application easier.
Once approved, the payments from EI are directly deposited into our accounts without us having to follow up on it. So that was one less thing to worry about in the wonderful and challenging moments of onboarding a little human.
Babajide and Sushmita
Babajide is the Product Manager at Moving2Canada
In Canada, maternity leave and parental leave serve different purposes, even though they both provide job-protected time off for new parents. The main difference is that maternity leave is specifically for the person giving birth, focused on recovery, while parental leave can be taken by either parent to support family bonding and childcare.
A quick note about the duration of parental leave.
Standard parental leave can last up to 40 weeks, however there is a 35 week limit per parent. This means one parent could take a maximum of 35 weeks and the other could take the remaining five. It could also be split in any other variation, so long as neither parent takes more than 35 weeks.
The same applies to extended parental leave, which has a maximum of 61 weeks per parent. The other parent must take at least 8 weeks of extended parental leave if you wish to gain the maximum range.
To access parental leave benefits, parents must meet specific criteria. These include:
For immigrant families, meeting the minimum work hours for EI eligibility can be a barrier if you have recently arrived in Canada or are still settling into a new job.
If you’re unsure if you might be eligible, check out the Government of Canada’s EI Benefits Estimator.
Parental leave in Canada is not fully paid, but eligible parents can receive Employment Insurance (EI) benefits, which replace part of their income. There are two options for income support:
Parents must choose either standard or extended benefits at the start of their leave, as the choice cannot be changed. These benefits provide financial support but may not fully cover the cost of living, especially in high-cost urban areas.
Newcomers who are still navigating the cost of living in Canada may find the lower-income replacement challenging. However, many parents choose extended benefits for the flexibility and additional time at home, especially in their child’s early years. The extended time off can be particularly valuable for immigrant families who want to establish a strong family support system in their new country.
You might also consider other child-related government benefits at this stage, including the Registered Education Savings Plan (RESP). A significant benefit of opening an RESP is that savings grow tax-free, compounded. Another is that Canada’s government ‘matches’ a percentage of every dollar invested into a RESP, up to an annual limit and lifetime maximum. So, the earlier you open the account, the earlier you can take advantage of the government match and tax-free growth on that match.
Just because you’re on parental leave, does not mean that you can’t work. It just means that you will receive less money from the government.
If you’re receiving EI, you can keep up to 50 cents of your parental leave benefit for every dollar you earn, up to 90% of your previous weekly earnings. Above this, your EI benefits are deducted dollar-for-dollar – and if you return to work for 40 hours per week, you will not receive any benefits.
Again, this offers flexibility for newcomers who may not have family support or as firm of a financial footing during this time.
Typically, people who are outside Canada are not eligible for EI payments. However, maternity and parental leave is an exception to this general rule.
This means that newcomers who wish to leave Canada to spend time with family outside Canada before or after welcoming a new child can do so and can still receive EI maternity or parental benefits.
To apply for parental leave, follow these steps:
Be aware that the first payment may take several weeks, so planning ahead can help you manage expenses in the meantime.
If you’re new to Canada or you’re considering moving here and want free access to information and resources to help you settle in, create a free Moving2Canada account.
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