Maternity and parental benefits provided for the birth or adoption of a baby vary wildly from country to country.

Parental Leave in the U.S. vs. Canada: An Overview

The United States is part of a very exclusive group, but not for the reasons you might suspect. It shares the spotlight with Papua New Guinea, Swaziland, and Lesotho as one of the only countries in the world that do not mandate some type of paid parental leave for new mothers, according to a study done by McGill University's Institute for Health and Social Policy.

Companies are free to go above and beyond the FMLA and state laws to offer employees more leave or family benefits. Like other employer-paid benefits, paid parental leave is offered by top companies to attract qualified workers.

In fact, when compared to Canada, the U.S. parental leave policy is embarrassingly sparse. The Canadian system provides at least a partial ongoing income for up to a year to give families time to adjust to the new addition, as well as a guarantee of re-employment after a lengthy leave.

In Canada

The Canadian government mandates both leave and a benefits component, the latter being administered by provincial employment insurance plans. Depending on the length of employment history and the hours worked, new parents can take up to 63 weeks of leave from their jobs.

Their employers are required to accept the employees back into their jobs, or the equivalent, at the end of the mandated leave at the same rate of pay with the same employment benefits.

Key Takeaways

  • A parent needs time to physically recover after giving birth, and families also need time to adjust to new routines and sleep patterns.
  • U.S. federal law provides up to 12 weeks of unpaid leave for the birth of a baby, though some employers may provide superior benefits.
  • In Canada, a pregnant employee or new parent can take up 15 weeks of paid parental leave.

On top of mandating parental leave, the government offers paid leave for one or both parents through Canada's employment insurance plan. A pregnant employee or new mother can take a paid pregnancy leave of up to 15 weeks.

Either parent can take 35 weeks of parental leave after the baby is born or adopted. The parents can share the leave however they choose.

If eligible for the program, the benefits equal 55 percent of the parent's average weekly insurable wage, up to a maximum of $562 per week. For low-income families, the rate of benefits can increase to up to 80 percent, with the same maximum of $562 per week. Employment insurance benefits are taxable in the same way as wages.

In the United States

In the United States, the picture for families-to-be is very different. The federal Family and Medical Leave Act (FMLA) signed into law in 1993 requires employers to provide up to 12 weeks of unpaid leave for several medical conditions, as well as the birth of a baby.

If the parent has pre-birth complications, she may be able to take part of the leave under the medical component. Before the law was enacted, the U.S. had no laws requiring that employers provide any leave. There still are gaping holes in the FMLA, however.

It exempts small employers, defined as those having fewer than 50 employees. A few states, including California and New Jersey, include pregnancy benefits as part of the state's disability insurance plan, which provides at least a partial offset of lost income. However, it is not a full-time salary.

The Bottom Line

While the FMLA in the U.S. allows at least a brief window for mothers to recuperate and care for a child after birth or adoption, there is no federal or state law mandating pregnancy benefits.

The downside of the lack of pregnancy leave and benefits in the United States is significant. Not only does a mother need time to physically recover after giving birth, but families also need time to adjust to new routines and sleep patterns. If a mother has to rush back to work after giving birth because she cannot afford the lack of a paycheck, she may not be as effective at her job compared to if she was rested and had her family life settled.

Because the Canadian government provides benefits and leave for employees, new mothers and fathers can take paid leave and be confident that they will have jobs waiting for them at the end of the leave period. When it comes to pregnancy benefits, Canada is a much more generous country.