Parental leave allowance

Sometimes called a “topup” the parental leave allowance supplements the amount you receive from Employment Insurance (EI) during your parental leave.

Eligibility

You're eligible for the allowance if you're receiving EI benefits and are:

• A regular (full- or part-time) employee
• An auxiliary employee eligible for parental leave benefits as per your collective agreement or terms and conditions of employment

Amount

Benefit waiting period allowance

For claims starting between March 30 and October 11, 2025, Employment Insurance is waiving the one-week waiting period before they process your first payment.

If you meet the parental leave allowance eligibility criteria, you may want to consider serving this waiting period (if you have not already done so under maternity leave).  

There's no waiting period if you're sharing parental leave and the other parent has already served the benefit waiting period.

You will receive an allowance of 85% of your basic pay for the EI waiting period if:

• You're required by Employment Insurance to serve a one-week waiting period for Employment Insurance Parental benefits, and
• You qualify for parental leave allowance

You have the option of selecting either the standard or extended parental leave allowance.

The allowance can either be claimed fully by one parent or shared between two parents. 

If the allowance is shared, both parents must choose the same allowance, either standard or extended.

Your choice for your top-up allowance is irrevocable. Once the standard or extended parental leave allowance is set, it cannot be changed, even if you decide to return to work early or extend your leave.

Parental leave can begin any time within 78 weeks following the birth or adoption.

However, EI and parental allowance benefits end:

• 52 weeks for standard parental leave after the birth
• 78 weeks for extended parental leave after the birth

Standard parental leave allowance

Employees taking standard parental leave can only apply to take the standard parental allowance as they can only apply for standard parental benefits with Employment Insurance.

If you applied for standard parental benefits with Employment Insurance and you're receiving the 55% benefit rate (to a weekly maximum), the weekly parental leave allowance is calculated as follows:

75% of your weekly gross basic pay (weekly earnings)
minus
Employment Insurance (EI) weekly gross parental benefit
minus
any additional earnings reported
equals
your weekly gross parental leave allowance amount
(for up to 35 weeks)

For example:

• Your weekly gross salary is $1,093
• You apply for standard parental benefits with Employment Insurance, and claiming standard leave allowance, and receive $573 weekly
• You apply to receive standard parental leave allowance for up to 35 weeks
• $1,093 x 75% = $819.75 – $573 (55% benefit rate) = $246.75 weekly for up to 35 weeks

Extended parental leave allowance

Employees taking extended parental leave can apply for standard or extended parental leave allowance and benefits with Employment Insurance.

If the employee, or employee sharing with their spouse, is not intending on taking the full 61 weeks of extended parental benefits, it may be of interest for them to take the standard parental benefit, as the parental benefit through Employment Insurance and the parental allowance are based on 61 weeks and will not be pro-rated any further.

If you apply for extended parental benefits with Employment Insurance, but are claiming the standard leave allowance, and you receive the 33% benefit rate (to a weekly maximum), the weekly parental leave allowance is calculated as follows:

75% of your weekly gross basic pay
minus
Employment Insurance (EI) weekly gross parental benefit you would receive if you had applied for Standard Parental Leave (55% benefit rate)
minus
any additional earnings reported
equals
your weekly gross parental leave allowance amount
(for up to 35 weeks)

If you opt for the extended parental leave allowance and take 61 weeks of parental leave, your overall top-up allowance will be the same total value as if you had received the standard parental allowance over 35 weeks of parental leave.

The weekly amount will be calculated by dividing the total amount by 61 weeks to determine your lower weekly amount to be paid over the extended leave period.

75% of your weekly gross basic pay
minus
Employment Insurance (EI) weekly gross parental benefit you would receive if you had applied for Standard Parental Leave (55% benefit rate)
minus
any additional earnings received
multiply
35 weeks
divided by
61 weeks
equals
your weekly gross parental leave allowance amount
(for up to 61 weeks)

The allowance is not pro-rated by the number of weeks you take for parental leave; therefore, it would be more beneficial for you to take the standard parental leave allowance if you're not taking the full 61 weeks of parental leave.

• For example, based on the above calculation, if you only took 50 weeks you would only receive $141.58 for 50 weeks. The $8,636.25 would not be divided by 50 weeks. It will still be divided by 61 weeks.

If you have any questions, contact AskMyHR (IDIR restricted) by submitting a service request using the categories: Myself > Leave & Time Off > Maternity, Parental, Adoption.

Salary used to calculate the allowance

• The allowance is calculated according to your base position, except if you're on a temporary appointment (TA)
• Your allowance will be recalculated if the position’s wage increases during your leave for certain reasons

If you're on a TA at the time of your leave:

• Your allowance is calculated based on the TA salary
• If your TA is scheduled to end during your leave, and does end, your allowance is recalculated using the basic pay amount for your base position for the rest of your leave

If your earnings change at any time during your parental leave: 

• You're required to report the earnings to both EI and the employer to avoid overpayment
• Your allowance will be reduced dollar-for-dollar of the earnings that are reported

Income tax implications

Income tax is deducted from parental leave allowance and EI payments. You may want to discuss your personal tax situation with an independent financial adviser.

You can choose to have additional taxes deducted to cover the income earned from both sources.

Submit a federal TD1 form through an AskMyHR (IDIR restricted) service request using the categories Myself (or) My Team or Organization > Submit a Form or Document > Direct Deposit/Tax Forms (TD1) or by fax to 250-652-2155.

Remember to complete a TD1 when you return to work if you wish to discontinue having additional taxes deducted.

Not claiming, or choosing to defer, the allowance

If you're not sure you want to claim the parental leave allowance for whatever reason, including that you have not decided if you’ll return to work after your leave, you may choose to defer the allowance.

You can defer the allowance up to the end of the return-to-work repayment period. The return-to-work repayment period is 6 months or the length of your leave, whichever is longer. Let your supervisor know if you choose to defer.

Refer to the Benefits while on leave or layoff page to learn about your benefits.

Have questions?

Contact AskMyHR (IDIR restricted) by submitting a service request using the categories: Myself (or) My Team or Organization > Pay > Allowances & Reimbursements.