Maternity leave and the Organisation for Economic Co-operation and Development

Forty-one countries have some form of paid parental leave, and the Organisation for Economic Co-operation and Development provides data from these countries about leave length, average pay rate and full-rate equivalent.[1] Not all countries provide mothers with a pay rate equal to what they would have received if the absence had not occurred.

Rate of basic pay can be defined as fixed pay received through minimum wage law or an administratively-determined wage.[2] Organizations and activists are working to inform, persuade and change pay-rate laws. Women in the workforce are at a disadvantage; regardless of legislation, a global gender pay gap is still visible.[3] The OECD is a primary supplier of research and data pertaining to parental-leave rights.[1]

Background

Paid maternity leave is important for women to take time away from work to bond with a child without financial pressures. Of the 193 United Nations countries, only a handful do not have a paid-parental-leave policy: New Guinea, Suriname, the United States and a few South Pacific island nations.[4] The international history dates back to the 1970s, with countries such as Iraq granting full pay for women. By the 1980s, Great Britain was at the point of giving women benefits but did not specify a pay rate.[5] The history of pay rates is limited and not well-recorded, except by the OECD.

Types of leave

Maternity leave varies by country, with most developed countries having at least one set type of maternity leave. Most maternity leaves include a length of time to take off, with some form of pay. The following countries grouped by pay rate.

United Kingdom

In the United Kingdom maternity-leave pay is known as Statutory Maternity Pay (SMP), which can cover up to 39 weeks of maternity leave. A woman can expect to earn 90 percent of her weekly earnings for the first six weeks of maternity leave; after that, the rate decreases.[6]

Australia, Canada, and New Zealand

In Australia, women can receive up to 18 weeks minimum-wage from the government; if an employer offers paid leave, a mother can receive that as well. In Canada, a woman can receive 17 weeks of maternity leave: two weeks before giving birth and 15 weeks afterwards. The two weeks before birth are unpaid.[7] As of March 2019, the Canadian federal government announced new benefits that will add five additional weeks to the 35-week standard option and eight additional weeks to the 61-week extended option.[8] In New Zealand, primary leave is 18 weeks of paid leave; special leave covers 10 days (spread out) for appointments or unpaid illness.[9]

Denmark, Greece, and Switzerland

In Denmark, a woman can receive 35 or 46 weeks of paid leave; the 35-week pay leave may be spread over 46 weeks.[7] Women in Greece must be insured to receive maternity benefits, which include 56 days before giving birth and 63 days afterwards. To receive the benefits a woman must stop working for 56 days. If she does not take 56 days off, the woman must add the days after giving birth to be paid.[10] In Switzerland, a woman is guaranteed up to 14 weeks (a minimum of 8 weeks) of paid leave after giving birth. She is paid 80 percent of her previous wage, with a daily maximum.[7]

Iceland, Japan, Turkey and Slovakia

Icelandic women receive 13 weeks of paid maternity leave (with an additional shared 13 weeks), with a ceiling of ISK370,000 per month. Japan allows 14 weeks if the woman is enrolled in the Employees' Health Insurance system. The leave can be taken by both parents in one absence period. There is a minimum payment of ¥46,230 per month and a maximum monthly payment of ¥285,420. Sixteen weeks of maternity leave are on the condition that the employee was employed for 236 weeks by the 15th week before the first week of leave. There is no ceiling on payments for the first six weeks. Slovakia grants leave until the child's third birthday as a family entitlement, with a monthly benefit of €203.2.[7]

Cyprus, Czech Republic, Hungary, Korea, and Sweden

Women in Cyprus, including women who are adopting, receive 16 weeks of maternity leave. Nine weeks are mandatory, with the first two beginning two weeks before the expected due date. During this time, women receive a grant which serves as maternity pay. After maternity leave, women can apply to leave work an hour each day with pay for six months to help care for their child.[11] In the Czech Republic, women receive 28 weeks of paid maternity leave; the minimum leave is 14 weeks. Families can receive financial support for child care. Women in Hungary have the options of up to 24 weeks of maternity leave at 70-percent pay or financial support and job insurance to raise the child, with part-time work promoted. In Korea, a woman receives 44 days of maternity leave before the birth and 90 days afterwards. During the first 60 days of the 90-day period, they receive full salary; during the last 30 days, they can receive up to ₩1,350,000. Swedish parents receive 480 days of maternity leave, with 90 days reserved for the father. The first 300 days are at 80-percent of pay, and the remainder is paid at a flat rate.[7]

Italy, Latvia, Malta, and Romania

In Italy, women receive 80 percent of their normal earnings for six months.[7] Latvian women are granted 114 days of paid leave, which may be extended based on health complications, the birth of more than one child or if there is more than one child under age two. When they return to work, mothers are allowed time to check on their child (or children).[12] Maltese women receive 18 weeks of uninterrupted maternity leave. The first 14 weeks are full salary and benefits, and the last four weeks can be covered by the government.[13] In Romania, women have two options: a one-year leave at 75-percent salary, with a bonus when they return to work, or two years at 75 percent without the return bonus.[14]

Bulgaria, France, and Norway

In Bulgaria women receive 410 days of maternity leave at 90-percent salary, with 45 days granted before giving birth.[15] French women are given 16 weeks of paid maternity leave for their first child, and time off increases with subsequent children. The amount paid is based on household income and how many children are already in the family. In Norway, women can choose 49 weeks at 100 percent of salary or 59 weeks at 80 percent.[7]

Average pay rates

Country	Pay rate
United Kingdom	30%-39.9%
Australia	40%-49.9%
Canada	40%-49.9%
New Zealand	40%-49.9%
Denmark	50%-59.9%
Greece	50%-59.9%
Switzerland	50%-59.9%
Iceland	60%-69.9%
Japan	60%-69.9%
Turkey	60%-69.9%
Slovak Republic	60%-69.9%
Cyprus	70%-79.9%
Czech Republic	70%-79.9%
Hungary	70%-79.9%
Korea	70%-79.9%
Sweden	70%-79.9%
Italy	80%-89.9%
Latvia	80%-89.9%
Malta	80%-89.9%
Romania	80%-89.9%
Bulgaria	90%-99.9%
France	90%-99.9%
Norway	90%-99.9%

According to OECD research, 60 percent of countries offering maternity leave do not provide full pay.[1] The table lists countries offering less than full salary, from lowest to highest.

These pay rates are the average of the paid leave for an individual earning 100 percent of the 2014 national average. In most countries, leave payments are calculated on gross earnings; however, in some—e.g., Austria, Chile, France and Germany—payments are based on net earnings (after income-tax and social-security payments). Pay rates in these countries reflect the proportion of net earnings replaced by the relevant payments, and should not be compared directly with pay rates based on gross earnings. Many countries have a variable rate; for example, Belgium gives women 82% of their salary for the first month. For the remaining three or four months (depending on the number of births) they receive 75 percent, with a cap of €133 per day.

Most OECD countries provide payments replacing over 50 percent of previous earnings, with twelve countries offering average-wage mothers full compensation for the leave. Pay rates are lowest in Ireland and the United Kingdom, where only about one-third of gross average earnings are replaced by maternity benefits. Despite lengthy paid-leave entitlements, full-rate maternity leave in these countries is only nine weeks in Ireland and twelve in the UK.[16]

References

1. "OECD Family Database - OECD". www.oecd.org. Retrieved 2016-11-10.
2. "What is the definition of rate of basic pay for the purpose of paying a... - OPM.gov". U.S. Office of Personnel Management. Retrieved 2016-11-10.
3. Blau, Francine D.; Kahn, Lawrence M. (2003). "Understanding International Differences in the Gender Pay Gap". Journal of Labor Economics. 21 (1): 106–144. CiteSeerX 10.1.1.538.4625. doi:10.1086/344125.
4. "Countries Around The World Beat The U.S. On Paid Parental Leave".
5. "The Timeline: Maternity leave". The Independent. 2010-10-22. Retrieved 2016-11-14.
6. "Maternity pay and leave - GOV.UK". www.gov.uk. Retrieved 2016-12-01.
7. "Annex: Detail of Change in Parental by Country" (PDF). Retrieved 2016-12-07.
8. Staff, Daily Hive (2019-03-15). "New federal benefits allow dads to take 5 weeks of shared parental leave". Daily Hive. Retrieved 2019-03-16.
9. "Types of parental leave » Employment". www.employment.govt.nz. Retrieved 2016-12-01.
10. "Maternity and Birth Benefits - Greece - Angloinfo". Angloinfo. Retrieved 2016-12-08.
11. "Department of Labour - Employment Policy". www.mlsi.gov.cy. Retrieved 2016-12-08.
12. "National Labour Law Profile: Latvia". 2015-09-01. Retrieved 2016-12-08.
13. "Maternity Leave". dier.gov.mt. Retrieved 2016-12-08.
14. "Maternity/Paternity leave in Romania". LPG Romania. 2014-12-19. Retrieved 2016-12-08.
15. "Maternity Leave, Allowance and Benefits - Bulgaria - Angloinfo". Angloinfo. Retrieved 2016-12-08.
16. "Key Characteristic of Parental Leave Systems" (PDF).