Paternity leave has significantly evolved over recent years. Even just a decade ago, the idea behind paternity leave was barely heard of, let alone adopted by numerous countries. However, now, paternity leave is a common right in many parts of the world, with international guidelines even enforcing it.
While paternity leave is becoming a norm in many places, there is one big question: is paternity leave paid? Currently, 90 out of 195 countries offer paid paternity leave. Tracking paternity leave across different countries can be complex, especially when employers have a widely distributed team. With an Employer of Record, like Borderless, however, those complexities can be addressed. Borderless can help you navigate all types of leave for your employees, including paid paternity leave policies and allowances.
What is Paternity Leave?
Paternity leave is a type of leave where new fathers are permitted to take time off following the birth of a child. In some countries, paternity leave also covers the adoption of a child. Paternity leave is also sometimes referred to as paternal leave.
Policies, lengths, pay and eligibility differ from country to country. When hiring employees abroad, you need to be aware of paternity leave policies from where your employee resides.
While on paternity leave, employees are entitled to job protection. In the majority of countries, employers are unable to terminate employees while on paternity leave.
Employers may choose to increase the length of paternity leave for their employee. Or, if paternity leave is not offered in the employees’ country of residence, employees can offer it as a supplemental benefit. Doing this must be outlined in the employment contract and can be easily achieved with the help of an Employer of Record (EOR).
Eligibility for Paternity Leave
Aside from the obvious requirement — being a new father — employees must meet specific requirements to be eligible for paternity leave. In general, these requirements include:
- Employees’ length of service with the employer
- Employees’ overall contribution to social security
- Size of the employers’ company
- Notice of pregnancy or adoption
It’s important to note that these requirements are entirely dependent on the employee’s jurisdiction.
Compensation for Paternity Leave
Is paternity leave paid? Well, that depends. Many countries do offer paid paternity leave, however, the amount of pay will vary in each country and region. Generally speaking, paternity leave pay is calculated based on an employee’s salary. The United Kingdom offers similar paid paternity leave. Eligible employees in the UK are paid 90% of their average weekly wage throughout the duration of their paternity leave.
Or, in some instances, employees are compensated in a lump sum. For example, paternity leave in Ireland is paid in an allowance; employees receive €250 a week over the period of two weeks.
Who covers the compensation also varies by jurisdiction. Sometimes, it’s paid fully by the employer. In other cases, paternity leave pay is taken care of by social security. Paternity leave pay may also be covered by both the employer and social security.
Some employers may choose to pay more than the legally required amount. For example, if paternity leave pay from the government covers 80% of an employee’s salary, the employer may choose to make up the additional 20% so the employee receives their full pay. If an employer chooses to do this, it must be outlined in the employment contract.
Paternity Leave vs. Parental Leave
Paternity leave is different from parental leave. Paternity leave, in general, is reserved exclusively for new fathers. Parental leave, on the other hand, can be shared by both parents and doesn’t need to be taken immediately after the birth or adoption of a child.
In some countries, parental leave covers paternity leave. In other cases, parental leave is offered in addition to paternity leave.
Benefits of Paternity Leave
Having a baby or adopting a child is a significant life event, so it’s essential to give fathers time to care for their new child and support their significant other. A report by McKinsey shows that paternity leave has many benefits.
Strengthens Relationships
One of the biggest benefits of paternity leave is that it strengthens relationships at home. In the McKinsey report, 90% of the men interviewed stated that they noticed a drastic improvement in their relationship at home during and after paternity leave.
Having both parents at home when caring for a new child is essential for creating a positive and supportive environment, which ultimately helps relationships and creates equal partnerships at home.
Participants in the report showed that when paternity leave is taken, new fathers are further investing in their family life and reducing the burden on the mother.
Establishes the Parental Role
Having both parents at home in the early stages of parenthood helps establish the parental role early on and helps create an immediate bond with the child. It allows parents to have equal roles early on, which influences the parental roles later on in the child’s life. Studies also show that the longer the paternity leave, the more equal the parental role is.
Additionally, by establishing the parental role early on, it also allows fathers to create that critical bond with their newborn. Paternity leave allows employees to be present. In the McKinsey report, participants stated that their increased presence allowed them to form a tighter bond throughout the course of their child’s life.
Provides Family Support
By having paid paternity leave, it provides support for the family, both financially and personally. Participants in the McKinsey report showed that being on paternity leave and providing that support system lets both parents flourish in their careers.
New mothers can go back to work sooner since knowing the father is home and caring for the child brings peace of mind. This helps minimize the impact of career progression on both sides. Overall, this helps increase the finances of the family, which, in the long run, helps with the family dynamic.
Helps with Employee Wellbeing
Having paternity leave helps with employee wellbeing, satisfaction, and overall performance and productivity. In a 2018 study, 60% of men reported that having paternity leave has helped with their overall wellbeing and feeling of fulfillment at their current job. The majority of the participants from the McKinsey study also reported that they expressed gratitude and appreciation for their employer.
However, 20% of men in the McKinsey report did recognize that they may face a career setback, they said that having the time off, caring for their child, and supporting their partner, was worth it.
International Guidelines for Paid Paternity Leave
Paternity leave is not mandated by international conventions, whereas parental leave and maternity leave are. However, the European Union adopted the Directive on Work-Life Balance for Parents and Carers in 2019 (Directive 2019/1158). This Directive requires European Union member states to provide fathers with adequate and paid paternity leave.
With this Directive, all employers in EU member states must allow new fathers to take a minimum of ten working days of paid paternity leave. It is compensated at the same rate as sick pay.
The Directive was implemented as a way to encourage new fathers to take paternity leave consistently across the European Union. For example, studies show that almost 90% of fathers in Sweden take paternity leave, whereas in Greece, under 1% of fathers use paternity leave.
The report also showed that there were two primary reasons why fathers were not taking paternity leave:
- Loss of income
- Paternity leave was only available towards the end of maternity leave
What Countries Offer Paid Paternity Leave?
While Directive 2019/1158 states that the minimum amount of paternity leave EU member states can offer is ten days, many choose to offer lengthier paternity leave at a higher pay rate. Aside from European Union member states, many other countries have designed their own paternity leave laws. Here are only a handful of examples — in total, 71 countries around the world offer such leave.
Canada
In 2019, Canada updated its paternity leave policy. With this update, new fathers are entitled to take five weeks of paternity leave. With paid parental leave granted, employees are compensated at 55% of their average salary, or a maximum of $573 per week throughout the duration of the leave.
Portugal
In Portugal, new fathers receive a minimum of 20 days of paid paternity leave. Once paid parental leave concludes, employees have the option to take five additional days. Paternity leave in Portugal is fully paid and employees are compensated through social security.
Estonia
Like Portugal, Estonia goes beyond the minimum of the EU’s requirements. Estonia’s paternity leave policy is 14 paid days off. In addition to that, Estonia offers paid parental leave that can be shared between both parents.
France
As of 2021, France updated its paternity leave to be more equal between men and women. Previously at two weeks, France’s paternity leave currently stands at four weeks. The employer is responsible for paying their salary for the first three days. Beyond those three days, they are compensated through social security.
Iceland
Paternity leave in Iceland combines both maternity and paternity leave, totalling 12 months. Both the mother and father receive six months each. If necessary, though, parents can transfer up to one month of leave to the other. But, is paternity leave paid in Iceland? Yes, however, it is not fully paid. During paternity leave, employees receive 80% of their salary.
Japan
Japan’s paternity leave allowance is quite generous — employees receive 12 months of paid parental leave exclusively for new fathers. Employees are paid 67% of their regular salary for the first 180 days of parental leave, and then 50% for the remainder of the leave. Employers don’t need to worry about covering the costs of parental leave; it’s covered by social security.
Lithuania
Similarly to Japan, Lithuania’s paternity leave policy goes beyond the minimum requirements. New fathers receive four weeks of paid paternity leave, which is paid at 77.85% of their regular wages. Following paternity leave, parents are able to take up to 36 months of parental leave, which both the mother and father can share. Parental leave is also compensated at 70% of the regular wages. All types of leave, including paternity leave, are covered by social security.
Spain
Previously, Spain’s paternity leave allowance was at 12 weeks. However, as of 2021, the Iberian country extended their paternity leave to 16 weeks. Employees receive 100% of their salary during paternity leave. With this extension, paternity leave and maternity leave are equal.
Cyprus
New fathers in Cyprus receive 14 days of paid paternity leave. The pay is an allowance covered by the government. However, there are some restrictions as to when paternity leave can be taken. It must be taken between the week of the birth of a child or adoption of a child, and up to two weeks after the end of maternity leave.
Greece
Before the EU’s Directive on Work-Life Balance for Parents and Carers was implemented in 2019, Greece offered two days of paid paternity leave for new fathers. Following the Directive, however, the Greek government now provides ten full days of paid paternity leave.
Is There Paternity Leave in the US?
There is currently no paid leave mandated for new fathers by the US federal law. The country does have a Family and Medical Leave Act (FMLA) which entitles eligible new parents to take 12 weeks of unpaid leave while their jobs are protected by law.
Even so, not everyone is covered. 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.
Providing Paid Paternity Leave as an Employer
While many countries do not offer paid leave to new fathers — as is the case in the United States — there has been a global push to provide paid family leave because of the many benefits it has. For employers that have employees in countries with little to no paternity leave, it can be offered as a supplemental benefit.
Many employers choose to offer gender-neutral parental leave for both partners. This allows both parents to take the necessary time they need to care for their new child and recuperate.
When creating an inclusive parental leave policy, it’s important to be mindful of local labor laws and regulations to remain compliant. Be sure that the paternity leave and parental leave you offer meet the minimum, or exceed the standard amount in the region where your employee resides.
Track Paid Paternity Leave With Borderless
Navigating paid paternity leave across the globe is challenging, especially with new international guidelines popping up and regulations being updated every couple of years. By working with an Employer of Record (EOR), like Borderless, tracking paid paternity leave with your remote team is easy and compliant. Speak with us today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
