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Planning my parental leave
Introduction
Starting a family is an exciting chapter in your life! It’s a major step that will bring about big changes in your personal and professional life and one that requires careful planning.
Get organized
As future parents, you will have to make a number of decisions, plan the parental leaves to which you are entitled, assess your income situation, and redo your family budget.
Whether you are a wage earner or a self-employed worker, the Québec Parental Insurance Plan (QPIP) has different formulas for determining the benefits to which you are entitled during your parental leave, under certain conditions.
Types of benefits
- Maternity: for the mother only
- Paternity: for the father only
- Parental: may be shared by the biological parents
- Adoption: may be shared by the adoptive parents
Make the most of your weeks!
According to the type of plan, the number of benefit weeks varies, as does the percentage of your income paid, which is based on your average weekly compensation before the leave. For 2023, a maximum amount of $91,000 is used for the calculation.
Pick your plan
The choice of plan is crucial for both parents and it cannot be changed.
Birth
| Basic Plan | |||
|---|---|---|---|
| Benefits | Maternity | Paternity | Parental |
| Number of weeks | 18 | 5 | 7 – 25 |
| % of income | 70% | 70% | 70% – 55% |
| Special Plan | |||
| Benefits | Maternity | Paternity | Parental |
| Number of weeks | 15 | 3 | 25 |
| % of income | 75% | 75% | 75% |
Adoption
| Basic Plan | ||||
|---|---|---|---|---|
| Benefits | Adoption (non-shareable) | Welcome and support benefits (shareable) | Adoption (shareable) | Multiple adoption (non-shareable) |
| Number of weeks | 5 (each) | 13 | 36 | 5 (each) |
| % of income | 70% | 70% | 70% – 55% | 70% – 55% |
| Special Plan | ||||
| Benefits | Adoption (non-shareable) | Welcome and support benefits (shareable) | Adoption (shareable) | Multiple adoption (non-shareable) |
| Number of weeks | 3 (each) | 12 | 28 | 3 (each) |
| % of income | 75% | 75% | 75% | 75% |
Regardless of the options chosen, it’s important to do benefit simulations to make an informed decision.
A baby budget
Your financial situation changes when your baby arrives. Your budget after the birth of your child will be very different from your current budget.
How will you be able to maintain a work-family balance in your new circumstances? Here are some tips:
- Prepare a family financial statement and current budget
- Assess your parental leave situation (benefit simulation)
- Calculate your income deficit
- Make a plan to resolve the expected deficit
A simulation of your situation
What will your financial situation be after the birth of your baby? Here is an example using the RQAP Benefit Calculation Simulator. Bear in mind that this is an estimate.
| Before the birth | After the birth | ||
|---|---|---|---|
| Income | Income and RQAP | ||
| Mother’s net income | $70,000 | Mother’s net income | $37,000 |
| Father’s net income | $40,000 | Father’s net income | $39,000 |
| TOTAL | $110,000 | TOTAL | $76,000 |
| Net income | $110,000 | Net income | $76,000 |
| Cost of living | $80,000 | Cost of living | ($80,000) |
| SURPLUS | $30,000 | Child expenses | ($10,000) |
| DEFICIT | $14,000 | ||
Family and tax planning
Your new parental responsibilities will entail additional expenses and require major adjustments in different areas:
- Insurance
- Savings (RESP, RRSP)
- Legal and estate planning
- Tax planning
What is the best strategy for you and your young family? Even if your new family budget is a challenge, it’s possible to achieve a balance. Good planning will enable you to chart your course, adjust to the changing needs of your children as they grow older, and stay focused on your goals!
Be informed
The Financial offers you a turnkey solution by giving you access to all the resources you need and by helping you make the right choices.
For more detailed answers and a thorough analysis of your situation, place your trust in one of our advisors.
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