The 2025 Guide to Canadian Parental Leave: Standard vs. Extended

Welcoming a new child is a major life transition, but the paperwork can feel like a full-time job. In Canada, the difference between choosing Standard or Extended leave isn’t just about time—it’s a major financial decision that can impact your household by thousands of dollars.

With the 2025 maximum insurable earnings now set at $65,700, we’ve updated LoonieSense with a dedicated Parental Leave Estimator to help you stop guessing and start planning.

The Three “Pools” of Benefits

One of the biggest points of confusion is how leave is actually divided. Most people think of it as “one year off,” but the government sees it as three distinct buckets:

1. Maternity Benefits (15 Weeks)

• Who gets it: Exclusive to the person giving birth (including surrogate mothers).
• The Math: Paid at 55% of your average weekly earnings, up to a maximum of $695/week in 2025.
• Note: These weeks cannot be shared or transferred to a partner.

2. Parental Benefits (The “Shareable” Pool)

This is where you choose your path. Once you pick a plan (Standard or Extended), you generally cannot change your mind later.

• Standard Parental (up to 35 weeks): Paid at 55% (max $695/wk). Must be used within 52 weeks of birth.
• Extended Parental (up to 61 weeks): Paid at 33% (max $417/wk). Must be used within 78 weeks of birth.

3. The Sharing Bonus (The “Use It or Lose It” Weeks)

If parents agree to share parental benefits, the government unlocks extra paid weeks to encourage both parents to stay home.

• Standard Plan Sharing: Unlocks 5 extra weeks (40 weeks total).
• Extended Plan Sharing: Unlocks 8 extra weeks (69 weeks total).
• The Catch: One parent cannot take the whole amount. On the Standard plan, one parent can take a maximum of 35 weeks. The remaining 5 weeks must be taken by the other parent, or they are forfeited.

Quebec Residents: QPIP

If you live in Quebec, you do not use federal EI. You use the Quebec Parental Insurance Plan (QPIP), which offers higher replacement rates:

• Basic Plan: Pays up to 70% of your salary (Maternity) and a mix of 70%/55% (Parental).
• Special Plan: Pays 75% but for a shorter duration.
• Higher Caps: The 2025 maximum insurable earnings for QPIP is $98,000, significantly higher than the rest of Canada.

How to Use the LoonieSense Estimator

Planning your budget shouldn’t require a spreadsheet. Our tool does the heavy lifting for you:

1. Select Your Province: We automatically toggle between Federal EI and Quebec QPIP rules.
2. Input Your Salary: Enter your gross annual income. We’ll automatically apply the 2025 “Insurable Earnings” cap.
3. Toggle the Sharing Bonus: See exactly how many “Reserved” weeks your partner qualifies for and how it affects the total claim value.
4. Compare Plans: Instantly switch between Standard and Extended to see the total cash value of each option.

Key Planning Tips for 2025

• The Waiting Period: There is a 1-week “waiting period” where you aren’t paid. Some employers “top up” this week, but if they don’t, you need to budget for 7 days of zero income.
• Taxation: Remember that EI and QPIP are taxable income. Unlike the Canada Child Benefit (CCB), the government will deduct tax from your bi-weekly payments.
• Apply Early: You should apply as soon as you stop working. If you wait more than 4 weeks after your last day, you may lose some of your benefit entitlement.

Official Resources

• EI Maternity & Parental Benefits Overview
• How the Sharing Benefit Works
• Quebec QPIP Official Site (RQAP)
• 2025 Maximum Insurable Earnings Notice

Plan your leave today: Launch the Parental Leave Estimator →