The Canadian Federal government has a national "Maternity" and "Parental" leave policy.

Importantly, it protects the parents’ jobs, i.e., an employer must either reinstate the person to the same position she/he held before the leave or place her/him in a comparable position with the same pay and benefits.

The basic policy covers 50-55 weeks, and may be shared by both parents or may be used by only the birth mother.

The benefits are categorized into two types:
1) The "Maternity Leave" benefits can be used only by the birth mother, BUT
2) The "Parental Leave" benefits can be shared between both the birth mother and the other parent, but with specific rules.

Illustration 1:

Only the birth mother uses the benefits, and she uses ALL the benefits.

In this case, the birth mother receives a total of 50 weeks, which is made up of:
* The "Maternity Leave" portion of 15 weeks PLUS
* A "Parental Leave" portion of 35 weeks.

For these 50 weeks, the birth mother receives 55% of her income, to a maximum of C$695/week, from which income tax is deducted, i.e.:

(max) $695 x 50 weeks = C$34,750 (minus tax deductions)

Illustration 2:

The birth mother shares the leave with the other parent, and together they use ALL the benefits

In this case, the sharing couple receives a total of 55 weeks, i.e., five weeks more than when only the birth mother uses the leave. The leaves are made up of:

• The "Maternity Leave" portion of 15 weeks which only the birth mother can use PLUS
• A "Parental Leave" portion of 40 weeks, which the couple can decide how to share, but neither parent can use more than 35 weeks

For each of the 55 weeks, the parent who is home with the newborn receives 55% of the income, to a maximum of C$695/week.

(max) $695 x 55 weeks = C$38,225 (minus tax deductions)

Extra Notes:

• If the baby has complications, e.g., an extended NICU stay, there is also an Extended Parental Leave option.
  
• The parents must decide what is best for their family and their finances, because the Extended Parental Leave option covers a longer period, but provides less income per week, i.e.:
  * It covers up to 69 weeks shared between both parents, and
  * 33% of income of the parent taking the time off, to a maximum of C$417/week, from which income tax is deducted.
  
• If using the Extended Parental Leave, neither the birth mother nor the other parent can take more than 61 of the 69 weeks.

For Detailed Information ...

Visit the Government of Canada's page on maternity and parental benefits