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Canada recognizes the importance of parental leave for families, and the system offers several benefits to parents of young children, including maternity leave and shared parental leave options. This support is particularly crucial for immigrant families, who represent around one-third of all families with young children in Canada.

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.

Key Takeaways

  • Types of Leave: Canada offers separate maternity leave for mothers and shared parental leave that parents can split between them.
  • Eligibility: To qualify for leave benefits, parents must have worked a certain number of hours and contributed to Employment Insurance (EI).
  • Income Support: Parental leave is not fully paid, but parents can receive partial income replacement through Employment Insurance benefits.
  • Flexible Options: Parents can choose between standard and extended leave, depending on their needs.
  • Quebec has a separate parental leave plan, so you will need to read up on the Quebec Parental Insurance Plan.
  • If you’re on maternity or parental leave, you might already be thinking about your child’s future education. Opening a Registered Education Savings Plan may be a good move at this stage. Learn more here.

Understanding Parental Leave in Canada

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:

  1. Maternity Leave: Available only to the person giving birth, this leave covers up to 15 weeks and is intended to provide time off before or after childbirth.
  2. Parental Leave: Parental leave is flexible and can be shared between both parents, covering up to 40 weeks for standard leave or 69 weeks for extended leave. You and your partner can take leave simultaneously or in sequence, so this leave is quite adaptable.

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.

In our experience

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

The Difference Between Maternity and Parental Leave in Canada

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.

Maternity Leave

  • Who It’s For: Maternity leave is available exclusively to the person giving birth.
  • Duration: It lasts up to 15 weeks.
  • Purpose: Maternity leave is designed to allow recovery from childbirth and bonding time with the newborn. This leave can be taken up to 12 weeks before or up to 127 weeks after the baby is born, for a maximum of 15 weeks.
  • Income Support: You may be eligible for maternity benefits during this leave, which provide partial income replacement. The benefit rate is 55% of the person’s typical income, up to a weekly maximum which changes annually. 

Parental Leave

  • Who It’s For: Parental leave is available to both parents and can be shared between them, regardless of gender or biological connection to the child. This includes adoptive parents.
  • Duration: Ranges from up to 40 weeks for standard parental leave or 69 weeks for extended parental leave. 
  • Purpose: This leave is meant to allow both parents to bond with and care for the child in the early months and years.
  • Flexible Options: Parental leave can be taken by both parents at the same time or one after the other, allowing families to manage their time and income needs.
  • Income Support: Parents can choose between standard parental benefits (up to 55% of income over 35 weeks) or extended benefits (up to 33% of income over 61 weeks).

Duration of Parental Leave

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. 

 

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Eligibility for Parental Leave

To access parental leave benefits, parents must meet specific criteria. These include:

  • Employment Status: Parents must be employed and have contributed to Employment Insurance (EI) in Canada. You can read more about Employment Insurance eligibility in our detailed post. 
  • Work Hours: Parents need to have worked at least 420 hours in the past year. Though, the requirement ranges from 420 to 700 hours depending on the unemployment rate in the area you live in.
  • Provincial Differences: Each province and territory has specific regulations governing the length of job-protected leave, which means your exact leave entitlements may vary based on your location.

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.

How Much Do Newcomers Get On Parental Leave? 

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:

  • Standard Benefits: These benefits provide 55% of average weekly earnings, up to a maximum amount that’s adjusted annually, for up to 35 weeks for one parent and 40 weeks shared between parents.
  • Extended Benefits: These offer 33% of average weekly earnings for a longer leave period of up to 69 weeks shared between parents (and a maximum of 61 weeks for one parent).

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.

Working While Claiming Parental Leave

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.

Can Newcomers Leave Canada While On Parental Leave?

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. 

How to Apply for Parental Leave

To apply for parental leave, follow these steps:

  1. Notify Your Employer: Let them know about your leave plans and the expected return date. The amount of notice you need to provide your employer varies between the provinces and territories, so check your local rules. 
  2. Submit Your EI Application: Apply for Employment Insurance benefits through Service Canada.
  3. Prepare Your Documents: Gather necessary documents, such as your child’s birth certificate or proof of adoption.

Be aware that the first payment may take several weeks, so planning ahead can help you manage expenses in the meantime.

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About the author

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Stephanie Ford

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Finance, Law and Immigration Writer
Stephanie is a content creator who writes on legal and personal finance topics, specializing in immigration and legal topics. She earned a Bachelor of Laws and a Diploma in Financial Planning in Australia. Stephanie is now a permanent resident of Canada and a full-time writer at Moving2Canada.
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Citation "Understanding Maternity and Parental Leave For Newcomers in Canada." Moving2Canada. . Copy for Citation
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