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Introduction

Starting a family is an exciting chapter in your life! It’s a major step that will bring about big changes in your personal and professional life and one that requires careful planning.

Get organized
As future parents, you will have to make a number of decisions, plan the parental leaves to which you are entitled, assess your income situation, and redo your family budget.

Whether you are a wage earner or a self-employed worker, the Québec Parental Insurance Plan (QPIP) has different formulas for determining the benefits to which you are entitled during your parental leave, under certain conditions.

Make the most of your weeks!

According to the type of plan, the number of benefit weeks varies, as does the percentage of your income paid, which is based on your average weekly compensation before the leave. For 2024, a maximum amount of $94,000 is used for the calculation.

Pick your plan
The choice of plan is crucial for both parents and it cannot be changed.

Basic Plan
Benefits Maternity Paternity Parental Adoption
Number of weeks 18 5 7 – 25 12 – 25
% of income 70% 70% 70% – 55% 70% – 55%
Special Plan
Benefits Maternity Paternity Parental Adoption
Number of weeks 15 3 25 28
% of income 75% 75% 75% 75%

Regardless of the options chosen, it’s important to do benefit simulations to make an informed decision.

Other options

Different plans are offered to doctors by their respective professional federations. For example, for medical residents, the FMRQ offers options allowing for a paid maternity leave of 21 weeks.

FMRQ
21-Week Maternity Leave
Plan Advantages Benefits
Basic Eighteen (18) weeks paid under maternity leave provisions and the last three (3) weeks paid as parental leave benefits. The resident receives the equivalent of 95% of their salary, with 70% paid by the QPIP and the difference paid by the hospital to which they are attached.
Special Fifteen (15) weeks paid under maternity leave provisions and the last six (6) weeks paid as parental leave benefits. The resident receives the equivalent of 95% of their salary, with 75% paid by the QPIP and the difference paid by the hospital to which they are attached.

A baby budget

Your financial situation changes when your baby arrives. Your budget after the birth of your child will be very different from your current budget.

How will you be able to maintain a work-family balance in your new circumstances? Here are some tips:

  • Prepare a family financial statement and current budget
  • Assess your parental leave situation (benefit simulation)
  • Calculate your income deficit
  • Make a plan to resolve the expected deficit

A simulation of your situation
What will your financial situation be like after the birth of your baby? Here’s a fictitious example to illustrate the impact of this change for a couple. Remember that this is a fictitious example, and that you can run your own personalized simulations using the QPIP benefit calculation simulator.

Before the birth After the birth
Income Income and RQAP
Mother’s net income $70,000 Mother’s net income $50,000
Father’s net income $40,000 Father’s net income $39,000
TOTAL $110,000 TOTAL $89,000
Net income $110,000 Net income $89,000
Cost of living $80,000 Cost of living ($80,000)
SURPLUS $30,000 Child expenses ($10,000)
DEFICIT $1,000

 

Family and tax planning

Your new parental responsibilities will entail additional expenses and require major adjustments in different areas:

  • Insurance
  • Savings (RESP, RRSP)
  • Legal and estate planning
  • Tax planning

What is the best strategy for you and your young family? Even if your new family budget is a challenge, it’s possible to achieve a balance. Good planning will enable you to chart your course, adjust to the changing needs of your children as they grow older, and stay focused on your goals!

Be informed

The Financial offers you a turnkey solution by giving you access to all the resources you need and by helping you make the right choices.

 

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You are dreaming about a big family? Good preparation is required. Read our article on the subject to know more about the different elements to consider.

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