Maternity Leave Benefits

With the baby coming, it’s no surprise it’s a topic of conversation for a lot of our friends.  It surprised me how many people have misconceptions about what kind of EI benefits they will be receiving.  Most people think it 55% of your income.  However, did not realize that there is a maximum.

So no.  If you make $100,000 a year, it does not mean you get $55,000 during maternity.  It’s quite a bit less and you need to plan for that.

The amount is reviewed and changed each year.  But as of right now, the latest information I see on the Service Canada website is that the maximum weekly benefit $514.  This means if you yearly income is $48,600 or below you receive 55% of your average insurable weekly earnings.  But if your income is greater than that there is no more from EI benefits.  You may receive a top up from your company, which you will need to look into eligibility and rules with your HR.

My company provides a top up to 70% of my income for the first 20 weeks.  It’s part of my benefits plan which I am responsible for paying the premiums for.  Also, if I don’t work a full 6 months after maternity, I have to return the top up.  I expect to be coming back, however, to be safe Beau and I are planning on saving the Top Up portion, invest it in something safe.  After 6 months of being back at the job, we will put it towards to investment for baby.