With an increasingly borderless world, more and more companies are hiring across the globe. However, doing so comes with a unique set of challenges, like navigating different parental leave policies. Each country has its own specific regulations, including a maternity leave policy, a paternal leave policy, and sometimes, a shared parental leave policy.
For example, if you hire an employee from Australia, it’s important to note that they have a maternity leave policy, a paternal leave policy, and a general paid parental leave allowance. In addition to the varied leave types,, the pay will vary considerably from country to country. For example, Australia’s paternal leave policy has different pay than its other types of parental leave.
Navigating different types of parental leave, the pay, the eligibility, and the length are all incredibly challenging to keep track of. Working with an Employer of Record (EOR) can help combat these challenges.
Here’s what you need to know about parental leave policies around the world.
What is Parental Leave?
Simply put, parental leave refers to when employees are granted time off work to care for their child. This can apply to newborns, adopted children, fostered children, or in some circumstances, children under the age of 18. Parental leave is designed to allow employees to balance their work and familial responsibilities during the stages of parenthood, especially early on. Parental leave policies and parental leave types vary across countries and regions.
Entitlements for parental leave are based on the individual, meaning that each parent has their own entitlement.
In some countries, periods of parental leave are strictly for the mother or father and these certain time periods cannot be transferred.
Types of Parental Leave
While some countries have introduced overarching leave allowances that include maternity, paternity, and parental leave entitlements — almost like a universal family leave allowance — the majority of countries operate with distinct policies for different types of parental leave.
Not all countries offer parental leave or various types of parental leave. However, there are common types of parental leave types and entitlements scattered across the world.
Maternity Leave
Maternity leave is granted to expecting mothers. This allows them to prepare for their newborn as well as recover from birth. The length of maternity leave varies by country; sometimes ranging from a few weeks to many months. It’s not uncommon for maternity leave to be paid, either fully or partially, but again, this is entirely dependent on the country and region where the employee resides.
Each country has different requirements for what makes an employee eligible for maternity leave. Generally, it applies to the size of the company and the length of continuous service from the employee.
Paternity Leave
Paternity leave, sometimes referred to as a paternal leave policy, is for new fathers who wish to spend time with their newborn or adopted child and support their significant other during parenthood, specifically in the early stages. Much like maternity leave, the length, pay, and eligibility of paternity leave varies from country to country.
The notion behind paternity leave hasn’t fully caught on across the globe just yet — many countries don’t offer paternity leave, or if they do, it’s unpaid and a short time. Paternity leave, in the majority of countries, lasts a few days or a couple of weeks.
Family Leave
Family leave is often referred to as parental leave or caregiver leave. Family leave uses gender-neutral language, making it the most inclusive parent leave policy. Family leave can be taken by either parent to care for and support their child. Family leave acknowledges that both parents are responsible for caring for their newborn or newly adopted child.
In some countries, family leave is available in addition to maternity leave and paternity leave. Many countries use family leave to allow employees to take time off to care and support sick children, adopted children, or fostered children. That being said, however, there are leave entitlements in some countries that are specifically for adopting children or caring for them for an extended period. Also, some countries offer paid family leave while others are unpaid, affecting the employee's salary.
Adoptive Leave
Adoption leave allows employees to take time off from work when they have adopted a child. It allows them to take the appropriate time off to bond and care for them. Compensation and duration for adoptive leave depend on the country and region of the employee.
Shared Parental Leave
Shared parental leave lets both parents pool together time off and divide the leave among each other. Shared parental leave aims to encourage both parents to be involved in raising the child and take the time they need. Shared parental leave is only offered in a few countries, like Iceland and Finland.
Extended Parental Leave
Some countries offer extended parental leave. This is for parents who choose to take longer time off from work to raise their children. In some cases, this may be combined with maternity or paternity leave. Extended parental leave is unpaid most of the time.
Unpaid Parental Leave
Where countries do not offer paid parental leave, some employees may choose to take unpaid parental leave. While unpaid parental leave does not entitle the employee to any income support, it does protect their job during their absence.
Additional Parental Leave
Some countries or employers offer this type of leave to allow employees to care for their children due to special circumstances. This can include caring for a child with an illness or disability. This leave recognizes the unique challenges that parents may face and provides them with the necessary time to care for their child.
International Guidelines for Parental Leave
There are international guidelines to keep countries on track when it comes to offering parental leave. In 2000, the International Labor Organization (ILO) created the Maternity Protection Convention, stating that mothers should be given at least 14 weeks of maternity leave. Today, the convention states that new mothers should be given a minimum of 18 weeks of leave.
Directives in the EU
The European Union also released a number of legislative acts that allow citizens to have parental leave. Under Directive 92/85, women have the right to a minimum of 14 weeks of maternity leave, of which two of those weeks are mandatory. Maternity leave in EU member states is compensated at the same level as paid sick leave.
Directive 2019/1158 also introduced paternity leave. This permits fathers to take off ten working days. Much like maternity leave, paternity leave in the EU is paid at the same level as sick pay.
When it comes to parental leave in the EU, employees also have the right to parental leave. Under Directive 2019/1158, employees are allowed to take a minimum of four months of general parental leave. With this parental leave, two out of the four months are non-transferable from one parent to the other.
Parents also have the right to take the leave part-time. This directive also states that all working parents are eligible to take parental leave or request flexible working options if their child is under eight years old.
What Countries Offer Parental Leave?
While many countries follow the ILO guidelines for parental leave, some choose to go above and beyond. In fact, very few countries do not federally mandate any form of paid parental leave — these countries include the United States, Papua New Guinea, and the Marshall Islands.
Here are some examples of countries that do offer forms of paid parental leave.
Estonia
In Estonia, employees are entitled to seven different types of parental leave. This includes adoptive leave, maternity leave, paternity leave, shared parental leave, and more.
Maternity leave in Estonia is fully paid and lasts 140 days. It is covered by social security.
Estonia’s paternal leave policy permits new fathers to take off 30 days, fully paid. This is initially covered by the employer, but the employer is later reimbursed by social security.
General parental leave in Estonia allows parents to take a paid leave until the child is three years old, however, only one parent can take this leave at a time. In total, parental leave in Estonia can last up to 435 working days.
Sweden
Sweden offers 480 days of paid parental leave per child. However, Sweden is one of the few countries that combine all parental leave — maternity leave, paternity leave, and adoption leave — into a universal parental leave entitlement.
Sweden’s parental leave can be divided between both parents, however, each parent must take at least 90 days. During this time, employees receive 80% of their regular pay.
Denmark
Denmark offers maternity leave, paternity leave, and general parental leave. Maternity leave in Denmark is 18 weeks long. The pay, however, is agreed upon by the employer and employee. The pay must be at least 50%, but anything beyond that is up to the employer and employee. In addition, new fathers are entitled to 2 weeks of paternity leave.
Parents are also allowed to take paid parental leave for up to 32 weeks. In total, employees in Denmark are entitled to 52 weeks of paid parental leave. However, for special circumstances, parents can request to take extended parental leave for up to 14 weeks. The pay for extended parental leave is agreed upon by both the employer and employee.
Lithuania
Employees in Lithuania are entitled to generous parental leave allowances. Maternity leave is fully paid and lasts 126 days. Lithuania’s paternal leave policy allows new fathers to 30 days off, fully paid.
Following maternity leave and paternity leave, employees are able to take parental leave. However, it must be taken by one parent at a time. Parental leave can last until the child is three years old. It is important to note that despite parental leave lasting up until the child’s third birthday, it will only be paid for one or two years. The payment amount and length depend on the allowance amount.
In addition, employees who have adopted a child or have become legal guardians are also entitled to 70 days of paid parental leave.
Employers do not have to pay for any type of parental leave in Lithuania. It’s all covered by social security.
Bulgaria
Bulgaria also offers lengthy parental leave. Maternity leave lasts 410 days and paternity leave is 15 days. The Balkan nation’s maternal leave policy and paternal leave policy allow employees to receive 90% of their pay. Their compensation is covered by the government.
If any days of maternity leave are left unused, the father is allowed to use them. However, this is only permitted once the child is older than six months.
After the 410 days of maternity leave, mothers have the option to extend their maternity leave until the child is two years old. This is paid at a lower rate and is covered by social security.
Iceland
Similarly to Sweden, Iceland’s parental leave laws are equal for both parents. In total, parents in Iceland are entitled to nine months of paid leave. This entitlement includes three months to be used following the birth of a child.
Employees can choose to take three additional months after birth, however, this can be split between both parents.
Employees receive 80% of their regular pay during parental leave in Iceland, which is covered by the government. If necessary, employees can choose to take four months of unpaid parental leave.
Norway
Again, much like Iceland and Sweden, Norway’s parental leave policies do not distinguish between maternity and paternity leave. It is grouped together under a universal parental leave allowance. Parental leave in Norway is either fully paid for 49 weeks, or 80% pay for 59 weeks. Each parent must take 15 weeks. If necessary, employees can take an additional year of parental leave, but this is unpaid.
Finland
In Finland, parental leave laws include pregnancy leave, parental leave, child care leave, and partial child care leave. Pregnancy leave is paid and lasts 40 days, 30 of which must be taken before the expected due date.
Parental leave lasts 320 days. Employees who take parental leave are paid, however, payment is through a daily allowance and this is covered by the Finnish social security system, Kela. Both parents are entitled to equal shares of parental leave.
Childcare leave is also available. Child care leave can be taken six months following the child’s birth. Employees are entitled to take two periods of child care leave, both of which last one month each.
Partial child care leave essentially allows employees to take up a flexible working schedule to care for children and attend the necessary appointments.
Italy
Parental leave in Italy includes maternity leave, paternity leave, and general parental leave. In Italy, pregnant employees are entitled to five months of paid maternity leave, however, this pay is only 80% of regular wages.
Italy also has a federally mandated paternity leave, which is 20 days and paid. This can be taken five months after birth or adoption of a child.
Parental leave is allowed once paternity leave and maternity leave ends. Parental leave can last up to six months, however, employees are only paid 30% of their regular wages.
Australia
Australian parental leave encompasses maternity leave, paternity leave, and shared parental leave. Maternity leave allows a female employee for 12 weeks, paid at the national minimum wage. Paternity leave lasts two weeks, is paid at the national minimum wage, and is covered by social security.
In addition to maternity leave and paternity leave, as of July 2023, employees are eligible for 20 weeks of parental leave, which, again, is paid at the national minimum wage.
Is There Parental Leave in the US?
There is currently no paid leave mandated for new parents by the US federal law. Some states, 11 to be exact, mandate paid family and medical care leave. That said, the US does have a Family and Medical Leave Act (FMLA) which entitles eligible employees to take 12 weeks of unpaid leave while their jobs are protected by law.
Even so, not everyone is covered by job protected leave. Only companies with over 50 employees are obligated to provide this type of leave to their employees.
More recently, the National Defense Authorization Act, containing the Federal Employee Paid Leave Act (FEPLA), has granted this right to federal employees. Now, a federal employee who has a newborn child or has taken a child into foster care can also take 12 weeks of unpaid FMLA leave.
The FMLA also offers protected unpaid leave for employees with a serious health condition or taking care of family members who are suffering from one. Employees in the US may also apply for short-term disability benefits, which can help supplement their income during unpaid leave.
Navigate Parental Leave with Borderless
Keeping track of parental leave laws and policies in different countries is challenging, especially when you have a widely distributed team. Parental leave laws are drastically different across the globe, and maintaining compliance may seem like a tall task. With Borderless, it doesn’t have to be. Stay compliant and navigate parental leave easily. Speak with us today.
Disclaimer
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