Savings Target Quick Reference
| Situation | Suggested Savings |
|---|---|
| No employer top-up | $15,000-$25,000 |
| Partial top-up (6-12 weeks) | $10,000-$18,000 |
| Full top-up (17+ weeks) | $5,000-$12,000 |
| Extended 18-month leave | Add $10,000-$20,000 |
Understanding EI Benefits
2025 EI Maternity/Parental Rates
| Benefit Type | Rate | Maximum Weekly |
|---|---|---|
| Maternity (birth parent) | 55% | $668 |
| Standard parental | 55% | $668 |
| Extended parental | 33% | $401 |
Leave Duration Options
| Option | Duration | Weekly Rate |
|---|---|---|
| Maternity only | 15 weeks | 55% (max $668) |
| Standard parental | 40 weeks (35 shareable) | 55% |
| Extended parental | 69 weeks (61 shareable) | 33% |
| Total (standard) | 55 weeks | 55% |
| Total (extended) | 84 weeks | 33% |
Calculate Your Income Gap
Step 1: Current Monthly Income
| Income | Monthly Net |
|---|---|
| $50,000/year | ~$3,400 |
| $65,000/year | ~$4,200 |
| $80,000/year | ~$5,000 |
| $100,000/year | ~$6,100 |
| $120,000/year | ~$7,100 |
Step 2: EI Benefits
| Gross Salary | EI Weekly (55%) | Monthly EI | Gap vs Net |
|---|---|---|---|
| $50,000 | $528 | $2,290 | ~$1,100 |
| $65,000 | $668 (capped) | $2,895 | ~$1,300 |
| $80,000 | $668 (capped) | $2,895 | ~$2,100 |
| $100,000 | $668 (capped) | $2,895 | ~$3,200 |
| $120,000 | $668 (capped) | $2,895 | ~$4,200 |
Step 3: Multiply by Months
| Income | Monthly Gap | 12-Month Shortage |
|---|---|---|
| $50,000 | $1,100 | $13,200 |
| $65,000 | $1,300 | $15,600 |
| $80,000 | $2,100 | $25,200 |
| $100,000 | $3,200 | $38,400 |
| $120,000 | $4,200 | $50,400 |
Employer Top-Up Impact
Common Top-Up Structures
| Employer Type | Top-Up | Duration |
|---|---|---|
| Federal government | 93% | 17 weeks |
| Some large corps | 75-100% | 6-17 weeks |
| Many employers | None | N/A |
| Negotiated | Varies | Varies |
Savings With Top-Up Example
$80,000 salary, 17-week top-up to 93%
| Period | Income | Monthly Gap |
|---|---|---|
| Weeks 1-17 | 93% salary | ~$350 |
| Weeks 18-55 | 55% EI only | ~$2,100 |
| Period | Duration | Shortage |
|---|---|---|
| With top-up | 4 months | ~$1,400 |
| EI only | 9 months | ~$18,900 |
| Total | 13 months | ~$20,300 |
Extended Leave Costs
18-Month Leave (Extended Parental)
| Benefit Change | Impact |
|---|---|
| Rate drops to 33% | Much lower benefits |
| More weeks | Longer without income |
| Income | Monthly EI (33%) | Gap vs Net |
|---|---|---|
| $50,000 | $1,375 | ~$2,025 |
| $80,000 | $1,740 | ~$3,260 |
| $100,000+ | $1,740 | ~$4,360 |
18-Month Savings Needed
| Income | 18-Month Gap |
|---|---|
| $50,000 | ~$36,000 |
| $80,000 | ~$59,000 |
| $100,000 | ~$78,000 |
These numbers show why most higher earners choose 12-month leave.
Baby Expenses to Add
First Year Baby Costs
| Category | Estimate |
|---|---|
| Nursery setup | $1,500-$5,000 |
| Gear (stroller, car seat) | $1,000-$3,000 |
| Diapers & supplies | $1,200-$2,000 |
| Formula (if needed) | $0-$3,000 |
| Clothing | $600-$1,500 |
| First year total | $4,000-$15,000 |
Add to Leave Savings
| Category | Target |
|---|---|
| Income gap | $15,000-$25,000 |
| Baby expenses | $5,000-$10,000 |
| Emergency buffer | $5,000 |
| Total savings | $25,000-$40,000 |
Building Your Mat Leave Fund
Timeline to Save
| Months Before | Monthly Savings Needed ($20K goal) |
|---|---|
| 24 months | $833 |
| 18 months | $1,111 |
| 12 months | $1,667 |
| 9 months | $2,222 |
Where to Save
| Account | Best For |
|---|---|
| HISA | Accessible, earning interest |
| TFSA HISA | Tax-free interest |
| Joint account | Shared planning |
Other Income Sources
Canada Child Benefit
| Income | Monthly CCB (1 child <6) |
|---|---|
| Under $36,502 | ~$620 |
| $50,000 | ~$570 |
| $75,000 | ~$480 |
| $100,000 | ~$370 |
| $150,000 | ~$130 |
Provincial Benefits
| Province | Program |
|---|---|
| Quebec | QPIP (higher benefits) |
| BC | BC Family Benefit |
| Alberta | Alberta Child Benefit |
| Ontario | Ontario Child Benefit |
Reducing Leave Expenses
Ways to Lower Costs
| Strategy | Savings |
|---|---|
| Reduce discretionary spending | $200-$500/month |
| Buy used baby items | $1,000-$3,000 |
| Accept hand-me-downs | Varies |
| Meal prep before leave | $200-$400/month |
| Pause subscriptions | $50-$150/month |
Budget on Leave
| Category | Pre-Leave | On Leave |
|---|---|---|
| Dining out | $400 | $100 |
| Entertainment | $200 | $50 |
| Shopping | $300 | $100 |
| Transportation | $400 | $200 |
| Monthly savings | - | $650 |
Savings Checklist
Before Leave
| Task | Timeline |
|---|---|
| ☐ Calculate income gap | 12+ months before |
| ☐ Check employer top-up | 12+ months before |
| ☐ Start saving | ASAP |
| ☐ Open HISA | 12+ months before |
| ☐ Build emergency fund | 6+ months before |
| ☐ Research baby costs | 6 months before |
| ☐ Apply for EI | When leave starts |