How to plan for your kids if you don’t receive parental leave benefits

After ramping up paid leave during the pandemic, many companies are now cutting or reducing common employee benefits.

In 2022, organizations with paid maternity leave will drop to 35% from 53% in 2020, according to the Human Resource Management Association’s employee benefits. survey. And less than a third, 27%, are currently on maternity leave, down from 44% in 2020.

“Many of these companies are now trying to go back to pre-pandemic standards,” said Michelle Long, a policy analyst at the nonprofit Kaiser Family Foundation.

More from Personal Finance:
Borrowers in these states may owe taxes on student loan forgiveness
Fear of inflation pushes shoppers to spike early on year-end holidays
Citi expands home ownership promotion program in diverse communities

During the pandemic, many companies ramped up service offerings beyond what state law required, but now “wallets have tightened” as the economy shifts, Long said.

Currently, there is no federal paid leave programand only 11 states plus the District of Columbia offer the benefit, which is usually funded by payroll taxes, according to data from the National Conference of State Legislatures.

This is a very, very expensive offer, especially for small and medium-sized companies.

Johnny C. Taylor, Jr.

President and CEO of Human Resource Management Association

“This is a very, very expensive offer, especially for small and midsize companies,” said Johnny Taylor, Jr., president and CEO of the Human Resource Management Association. and replace at the same time.

However, as the labor market softens, “the game is changing a bit,” he said, and companies are cutting back on previously enhanced parental leave policies.

How to prepare if you lose pay for parental leave

Whether you are a current employee or considering job offers, it is important to know the details of your company’s parental leave policy if you are planning to grow your family. himself, Taylor said.

“Often the temptation is to take the highest paying job without taking into account things like their paid leave offer,” he says. If you’re interviewing, ask for an overview of the company’s full benefits package, he suggests.

While using time off for parental leave is another option, he urges parents-to-be to weigh the pros and cons before spending all of the paid vacation days of the year.

“Nursing a newborn is not a vacation,” Taylor said. “If you spend all your time off doing that, you’ll burn out.”

WeWork says more employees want flexible work arrangements

Nicole Sullivan, a certified financial planner and co-founder of Prism Planning Partners in Libertyville, Illinois, suggests.

“Fully understanding and coordinating all the company benefits is another big help – things like flexible spending or dependent care accounts and Medicaid,” she says.

Sullivan added: “Many companies have the benefit of enrolling in November, so this is a good time for parents and guardians to consider.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button