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126-468: Parental leave , or family leave , is an employee benefit available in almost all countries. The term "parental leave" may include maternity , paternity , and adoption leave; or may be used distinctively from "maternity leave" and "paternity leave" to describe separate family leave available to either parent to care for their own children. In some countries and jurisdictions, "family leave" also includes leave provided to care for ill family members. Often,

252-615: A natural experiment evaluating a 2004 policy change in France . They were interested in the economic effects of full-time, short paid parental leave. Before the reform, women had a mandatory two-month parental leave, and could take up to three years' unpaid parental leave with their job guaranteed, though most women only took the two months. The new policy, complément libre choix d'activité (CLCA), guarantees six months of paid parental leave. The authors found positive effects on employment: compared to women in otherwise similar circumstances before

378-407: A "flex scheme", is where employees are allowed to choose how a proportion of their remuneration is paid or they are given a benefits budget by their employer to spend. Currently around a third of UK employers operate such a scheme. How flexible benefits schemes are structured has remained fairly consistent over the years, although the definition of flex has changed quite a lot since it first arrived in

504-481: A 2016 study, the expansion of government-funded maternity leave in Norway from 18 to 35 weeks had little effect on children's schooling. However, when infants bond and have their needs met quickly by caregivers (mothers, fathers, etc.) they will become confident and be prepared to have healthy relationships throughout their life. Children whose mothers worked in the first 9 months were found to be less ready for school at

630-474: A 2020 study, parental leave leads to better health outcomes for children. A Harvard report cited research showing paid maternity leave "facilitates breastfeeding and reduces risk of infection" but is not associated with changes in immunization rate. This research also found that countries with parental leave had lower infant mortality rates. Returning to work within 12 weeks was also associated with fewer regular medical checkups. Data from 16 European countries during

756-593: A Benefits Calculators web page with several stand-alone online calculators that help individuals estimate their benefits and prepare for retirement. These include benefit calculators for spouses, calculators for persons affected by the Windfall Elimination Provision or the Government Pension Offset and calculators to determine a person's full retirement age or the effect of the earnings test on benefits. SSA also provides

882-548: A base salary figure. Fringe benefits are also thought of as the costs of retaining employees other than base salary. The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited. Some fringe benefits (for example, accident and health plans, and group-term life insurance coverage up to $ 50,000) may be excluded from

1008-507: A compensation package more attractive. Benefits that are mandated are thought of as creating employee rights or entitlements, while discretionary benefits are intended to inspire employee loyalty and increase job satisfaction. Employee benefits in Canada usually refer to employer sponsored life, disability, health, and dental plans. Such group insurance plans are a top-up to existing provincial coverage. An employer provided group insurance plan

1134-640: A controversial issue. It was first introduced by the Parental Leave Directive 2010 , which required at least one month of the minimum four months of parental leave be non-nontransferable; this non-transferable period was increased to two months by the Work–Life Balance Directive of 2019 , which must be transposed by member states at the latest on 2 August 2022. Originally, the plan under the Work–Life Balance Directive

1260-619: A family in a specific country. A country for example may have a long maternity leave but a short (or non-existent) parental or family leave, or vice versa. In the European Union , each country has its own policies, which vary significantly, but all the EU members must abide by the minimum standards of the Pregnant Workers Directive and Work–Life Balance Directive . Sometimes there is a distortion in how maternity leave

1386-462: A life expectancy calculator to help with retirement planning. If a person first claims a retirement benefit at the full retirement age (FRA), the individual will receive a monthly benefit amount equal to 100 percent of the individual's primary insurance amount (PIA). If first claimed before the FRA, the monthly benefit amount is smaller than 100 percent of PIA and if claimed after the FRA the monthly amount

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1512-602: A limited impact on how much leave new parents take. Though specific amounts can vary, having a child (including the cost of high-quality childcare) costs families approximately $ 11,000 in the first year. These high costs contribute to new mothers in the United States returning to work quicker than new mothers in European countries; approximately one third of women in the United States return to work within three months of giving birth, compared to approximately five per cent in

1638-445: A longer duration. A competing hypothesis states that when coworkers increase their pregnancy leave, there becomes a change in the social norms of that workplace. This phenomenon is known as "herd behaviour" in which an alteration of the traditional habits in the workplace shifted the behaviour of the employees. Several factors influence the uptake of parental leave by expectant fathers. For example, research has found that fathers who had

1764-728: A longer parental leave, the probability of her to also increase their maternity leave increases. Welteke and Worhlich (2019) article found that expectant mother's who had peers taking parental leave of longer than ten months were thirty percent more likely to also take more than ten months off compared to expectant parents whose peers took a shorter leave. The influence of peer effects is not solely present to expectant mothers but also fathers. Research in Norway found that expectant fathers were 11 percent more likely to take paternity leave if they witnessed their coworkers use this benefit. In addition to coworkers, expectant fathers were 15 percent more likely to use paternity leave if their brother also utilized

1890-482: A minimum threshold of each central capability. Universal, paid parental leave is an example resource states can provide so people have the option of starting a family while also working; for instance, under capacity 10 (control of one's environment) , the state has a responsibility to ensure all people have "the right to seek employment on an equal basis with others." Paid parental leave incentivizes labor market attachment for women both before and after birth, affecting

2016-662: A national disaster are not taxable income to the employee. The payments must be reasonable and necessary personal, family, living, or funeral expenses that have been incurred as a result of a national disaster. Eligible expenses include medical expenses, childcare and tutoring expenses due to school closings, internet, and telephone expenses. Replacement of lost income or lost wages are not eligible. Employee benefits provided through ERISA (Employee Retirement Income Security Act) are not subject to state-level insurance regulation like most insurance contracts, but employee benefit products provided through insurance contracts are regulated at

2142-524: A number of countries (e.g., Australia , New Zealand and Pakistan ), the "fringe benefits" are subject to the Fringe Benefits Tax (FBT), which applies to most, although not all, fringe benefits. In India , the fringe benefits tax was abolished in 2009. In the United States , employer-sponsored health insurance was considered taxable income until 1954. In the UK, benefits are often taxed at

2268-417: A policy change in 1984 where parental leave increased from 14 to 20 weeks. Rasmussen found the increased length of parental leave had no negative effect on women's wages or employment and in the short run (i.e., 12 months) it had a positive effect on women's wages, compared to the shorter leave. There was no difference on children's long-term educational outcomes before and after the policy change. According to

2394-461: A political model known as the capabilities approach , where basic freedoms and opportunities are included in the economic assessments of a country's well-being, in addition to the GDP of a country. Nussbaum proposed 11 central capabilities as the minimum requirement for a decent society. In Nussbaum's model, states should provide the resources and freedoms to ensure people have the opportunity to achieve

2520-463: A pronounced impact, with the quota being credited for increasing paternal involvement and challenging gender roles within the family, promoting a more equal division of labor. To evaluate this change, Rønsen and Kitterød looked at the rate and timing of women's return to work after giving birth, and the effect on this of the new parental leave policy. In their 2015 study, Rønsen and Kitterød found women in Norway returned to work significantly faster after

2646-453: A reduced monthly benefit amount and a worker who claims at an age after the full retirement age (up to age 70) receives an increased monthly amount. The 90, 32, and 15 percent factors in the PIA computation lead to higher replacement rates for persons with lower career earnings. For example, a retired individual whose average earnings are below the first bend point can receive a monthly benefit at

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2772-482: A replacement Social Security card or check the status of an application. A printed copy of the Social Security Statement is mailed to workers age 60 or older. In 2021, SSA began producing Retirement Ready fact sheets, available online and as part of the online Statement, that tailor retirement planning information to different age groups (young, middle age, and older workers). SSA also has

2898-546: A secondary education were 28% more likely to take parental leave programs longer than fathers who did not receive secondary education. Furthermore, fathers with a tertiary education were 67% more likely to take parental leave of longer than two months than dads with secondary education. Additionally, the Income levels of fathers have been noted to influence the uptake of fathers' parental leave. Low-income fathers are less likely to use parental leave, and if they did take off time, it

3024-543: A significant effect on birth weight. The frequency of low birth rate decreases under these policies, which likely contributes to the decrease in infant mortality rates as low birth weight is strongly correlated with infant death. However, careful analysis reveals that increased birth weight is not the sole reason for the decreased mortality rate. A 2021 study found that the introduction of paid maternity leave in Norway substantially improved maternal health outcomes, in particular for first-time and low-income mothers. According to

3150-511: A significant effect on the gender wage gap, which has remained relatively steady since the late 1980s, despite increasing adoption of parental leave policies. In the U.S., while the Family and Medical Leave Act of 1993 (FMLA) allows for unpaid parental leave, parents often do not utilize this eligibility to its fullest extent as it is unaffordable. As a result, some studies show that the FMLA has had

3276-761: A specific public fund), employer liability (where the employer must pay the employee for the length of leave), and mixed policies that combine both social security and employer liability . Parental leave has been available as a legal right or governmental program for many years in one form or another. In 2014, the International Labour Organization reviewed parental leave policies in 185 countries and territories, and found that all countries except Papua New Guinea have laws mandating some form of parental leave. A different study showed that of 186 countries examined, 96% offered some pay to mothers during leave, but only 44% of those countries offered

3402-538: A study that examined policies in 34 OECD countries, in nineteen of these countries, same sex female couples received the same amount of parental leave benefits as different sex couples. For same-sex male couples, four countries provided the same duration of parental leave as different sex couples. Therefore, twenty-nine OECD countries provided a shorter period of parental leave and fewer benefits for same-sex male parents. In addition, some countries, such as Turkey and Israel, provided no parental leave benefits or paid leave for

3528-502: A suitable alternative to the mother as primary caregiver, while working-class men may see themselves more as supporters of their partner during her leave. Consequently, middle class fathers may be more likely to use their allotment of leave right after the mother returns to work, while working class fathers may opt to take their leave during the mother's leave. In some cases, longer leave for fathers can motivate mothers to also stay home. Fathers tend to use less parental leave than mothers in

3654-463: A timely basis. The amount of the monthly Social Security benefit to which a worker is entitled, currently depends upon the earnings record on which they have paid FICA or SECA taxes and upon the age at which the retiree chooses to begin receiving benefits. That said, the U.S. Supreme Court ruled in Flemming v. Nestor (1960) that no one has a contractual right to Social Security benefits. Medicare

3780-412: Is a greater likelihood for first-generation immigrants to lack access to information concerning parental leave can contribute to the decrease in uptake from this demographic. Another aspect that influences the uptake of parental leave is gender dynamics at home and work. In households with a positive association between fatherhood involvement and egalitarian values, the father utilization of parental leave

3906-578: Is a separate program from Social Security, although disabled and aged (65 or older) Social Security beneficiaries qualify for Medicare. The financing for Medicare (United States) is also based on payroll taxes, trust fund reserves, and the taxation of some Social Security benefits. Workers in Social Security covered employment pay FICA ( Federal Insurance Contributions Act ) or SECA (Self Employed Contributions Act) taxes and earn quarters of coverage if earnings are above minimum amounts specified in

Parental leave - Misplaced Pages Continue

4032-503: Is an option of second-parent adoption in some of these 15 countries, the process of a second adoption is costly and time-consuming- creating potential barriers that restrict the same-sex couple from pursuing this procedure. In some countries, same-sex parents can only be formed through a birth mother in a lesbian relation (considered legally a single mother), so the second mother does not receive leave. The Maternity Protection Convention, 2000 requires at least 14 weeks of maternity leave. In

4158-904: Is coordinated with the provincial plan in the respective province or territory, therefore an employee covered by such a plan must be covered by the provincial plan first. The life, accidental death and dismemberment and disability insurance component is an employee benefit only. Some plans provide a minimal dependent life insurance benefit as well. The healthcare plan may include any of the following: hospital room upgrades (Semi-Private or Private), medical services/supplies and equipment, travel medical (60 or 90 days per trip), registered therapists and practitioners (i.e. physiotherapists, acupuncturists, chiropractors, etc.), prescription requiring drugs, vision (eye exams, contacts/lenses), and Employee Assistance Programs. The dental plan usually includes Basic Dental (cleanings, fillings, root canals), Major Dental (crowns, bridges, dentures) or Orthodontics (braces). Other than

4284-563: Is defined, and whether the policies are for unpaid or paid leave. Policies guaranteeing paid leave are considered by some to be dramatically more effective than unpaid-leave policies. For women individually, long breaks in employment, as would come from parental leave, negatively affects their careers. Longer gaps are associated with reduced lifetime earnings and lower pension disbursements as well as worsened career prospects and reduced earnings. Due to these drawbacks, some countries, notably Norway, have expanded family policy initiatives to increase

4410-426: Is due to the employment-based eligibility criteria present with the country's parental leave program (although unemployed women receive maternity leave). By utilizing an employment-based measure, scholars have noted that this creates barriers for currently unemployed mothers to receive an opportunity to take more time off looking for a job and care for their child. Another limitation present with employment-based criteria

4536-433: Is increased. Workplace environments that promote parental leave for fathers as essential create a greater likelihood of these dads taking parental leave for a longer duration. In contrast, a workplace culture that views paternal leave as an indicator of poor work habits and as "feminine" causes fathers in that environment to be less likely to participate in parental leave. In Australia it has been argued, by Georgie Dent , that

4662-418: Is increasingly granted to fathers, mothers continue to take the majority of guaranteed parental leave. When guaranteed leave is unpaid, research indicates that men's leave usage is unaffected. In Germany, where parental leave is guaranteed for both parents, the financial incentive, alone, was not enough to encourage fathers to take paternal leave. While uncommon on a world scale, some countries do reserve parts of

4788-547: Is its potential to disrupt productive activities by raising rates of employee absenteeism. With mandated leave for a certain period of time and facing prolonged absence of the mothers in the workplace, firms will be faced with two options: hire a temp (which could involve training costs) or function with a missing employee. Alternatively, these policies could be positive for employers who previously did not offer leave because they were worried about attracting employees who were disproportionately likely to use maternity leave. Thus, there

4914-475: Is often less concerned about the idea of paternity leave itself, but condemns the fact that father's quota policies do not allow that time to be allocated to the mother instead. Critics argue that the quota harms mothers, depriving them of much needed leave, trivializes biological realities, and is an example of discrimination against mothers. In the European Union, non-transferable parental leave remains

5040-406: Is often quoted as having an exceptionally long leave, although there are several countries with significantly longer leave, when maternity leave and other leaves are added, where a parent may take leave until a child is 3 years of age. Research has demonstrated that the duration of parental leave among individuals is influenced by peer behaviour. For example, if a mother notices a coworker opting for

5166-435: Is potential for these policies to correct market failures . A drawback of rising leave at the societal level, however, is the resulting decrease in female labor supply. In countries with a high demand for labor, including many present-day countries with aging populations, a smaller labor supply is unfavorable. Something important to note for all the research cited above is that the results typically depend on how leave coverage

Parental leave - Misplaced Pages Continue

5292-512: Is reported and delimitated from other types of leave, especially in jurisdictions where there is no clear legal term of "maternity leave", and such term is used informally to denote either the minimum or the maximum period of parental leave reserved by quota to the mother. Some countries may be listed artificially as having more or less generous benefits. Sweden is sometimes listed in international statistics as having 480 days' "maternity leave", although these days include parental leave. As such, Sweden

5418-429: Is shorter in duration compared to fathers with a higher income. The discrepancies between the two demographics may be due to fathers with lower incomes being restricted by personal finances. Fathers in heterosexual relationships are even less likely to take parental leave if the mother is a low earner herself. The mother's low income positively correlates with the father taking little to no parental leave. This may be due to

5544-419: Is that in Norway it has been shown to have the potential to either decrease or increase the time women take, depending on whether the mother's and father's childcare are seen as substitutes or complements . If substitute goods, mothers are able to return to work sooner as fathers take some of the childcare responsibility. Research has suggested a class element is at play: middle class fathers consider themselves

5670-543: Is that in some countries self-employed individuals are not eligible for certain parental benefits. For example, in Belgium, a self-employed woman receives a maternity leave that is shorter and lower paid than an employed woman; and does not receive parental leave. There are also a certain number of hours an employee must meet before being eligible for employment-based parental leave. These various factors limit access to parental care for expecting mothers. Expecting parents who are

5796-672: Is the name given to a collection of benefits that employees choose to opt-in for and pay for personally, although as with flex plans, many employers make use of salary sacrifice schemes where the employee reduces their salary in exchange for the employer paying for the perk. These tend to include benefits such as the government-backed (and therefore tax-efficient) cycle to work, pension contributions and childcare vouchers and also specially arranged discounts on retail and leisure vouchers, gym membership and discounts at local shops and restaurants (providers include Xexec). These can be run in-house or arranged by an external employee benefits consultant. In

5922-440: The European Union , the Pregnant Workers Directive requires at least 14 weeks of maternity leave; while the Work–Life Balance Directive requires at least 10 days of paternity leave, as well as at least 4 months of parental leave, with 2 months being non-transferable. Typically, the effects of parental leave are improvements in prenatal and postnatal care, including a decrease in infant mortality. The effects of parental leave on

6048-514: The IRS . Private firms in the US have come up with certain unusual perquisites. In the United States paid time off, in the form of vacation days or sick days, is not required by federal or state law. Despite that fact, many United States businesses offer some form of paid leave. In the United States, 86% of workers at large businesses and 69% of employees at small business receive paid vacation days. In

6174-642: The United States , Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance ( OASDI ) program and is administered by the Social Security Administration (SSA). The Social Security Act was passed in 1935, and the existing version of the Act, as amended, encompasses several social welfare and social insurance programs. The average monthly Social Security benefit for September 2023

6300-428: The "non-family-friendly" private sector for one year's leave. Universal, paid parental leave can be privately funded (i.e., corporations are mandated to absorb the cost of paid parental time off as part of employee benefits ) or publicly funded (i.e., transferred directly to workers on leave, like unemployment insurance ). Concerns about private funding include the statistical discrimination described above as well as

6426-426: The 90% multiplier in the first PIA bendpoint to 40–85% depending on the number of Years of Coverage. Foreign pensions are subject to WEP. A special minimum benefit, based on an alternative PIA calculation, is available for some workers with long careers but low earnings. However, it is rarely higher than the regularly computed PIA and thus few workers qualify for the special minimum benefit. 32,000 individuals received

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6552-538: The GDP and national productivity, as the workforce is larger. Parental leave increases income at the household level as well by supporting dual-earner families . Paid parental leave incentivises childbirth, which affects the future workforce. It is thus argued that paid parental leave, in contrast to unpaid parental leave, is harmful to children's welfare because in countries with an aging workforce or countries with sub-replacement fertility , children are born not because

6678-585: The International Accounting Standards Board, defines employee benefits as forms of indirect expenses. Managers tend to view compensation and benefits in terms of their ability to attract and retain employees, as well as in terms of their ability to motivate them. Employees – along with potential employees – tend to view benefits that are mandated by regulation differently from benefits that are discretionary, that is, those that are not mandated but are simply designed to make

6804-431: The PIA. Once the PIA is computed, it is indexed for price inflation over time. Thus, Social Security monthly benefit amounts retain their purchasing power throughout a person's retirement years. A worker who first starts receiving a retirement benefit at the full retirement age receives a monthly benefit amount equal to 100 percent of the PIA. A worker who claims the retirement benefit before the full retirement age receives

6930-562: The PIAs of a spouse or a deceased spouse. Aged spouse and divorced spouse beneficiaries can receive up to 50 percent of the PIA. Survivor benefit rates are higher and aged widow(er)s and aged surviving divorced spouses can receive 100 percent of the PIA. Federal, state and local employees who have elected (when they could) NOT to pay FICA taxes are eligible for a reduced FICA benefits and full Medicare coverage if they have more than forty quarters of qualifying Social Security covered work. To minimize

7056-613: The Penn Wharton Budget Model (University of Pennsylvania) projected depletion in 2032–2034, depending on the shape of the economic recovery in the U.S. following the COVID-19 pandemic. With regard to actuarial balance, the Social Security Trustees estimate a 75-year actuarial deficit of 3.61 percent of payroll. This is approximately the total payroll tax increase that would be necessary to keep

7182-979: The Social Security Act are: The SSA administers two of these programs (OASDI and SSI). The Social Security program in the United States pays benefits to three broad categories of individuals: retired individuals and some family members, disabled persons and some family members, and survivors. Within these broad categories, the program defines more specific types of beneficiaries. For example, spouses and divorced spouses are distinct categories, with somewhat different eligibility requirements. Survivor benefits include several categories including aged widow(er)s, aged surviving divorced spouses, disabled widow(er)s, disabled surviving divorced spouses, paternal and maternal orphans, and widow(er)s caring for minor or disabled children. As of 2023, there were about 66.8 million individuals receiving Social Security benefits. Individuals receiving Retirement Insurance Benefits constitute

7308-425: The Social Security Statement. The Statement can be accessed online by opening an online account with SSA called my Social Security . With that account, workers can also construct "what if" scenarios, helping them to understand the effect on monthly benefits if they work additional years or delay the start of retirement benefits. The my Social Security account also offers other services, allowing individuals to request

7434-422: The Social Security payments to those who have not contributed to FICA for 35+ years and are eligible for federal, state and local benefits, which are usually more generous, the U.S. Congress passed the Windfall Elimination Provision (WEP). The WEP provision does not eliminate all Social Security or Medicare eligibility if the worker has 40 quarters of qualifying income, but calculates the benefit payments by reducing

7560-496: The Social Security payroll tax. Wage and salary earnings above this amount are not taxed. In 2024, the maximum amount of taxable earnings is $ 168,600. Social Security is nearly universal, with 94 percent of individuals in paid employment in the United States working in covered employment. However, about 6.6 million state and local government workers in the United States, or 28 percent of all state and local workers, are not covered by Social Security but rather pension plans operated at

7686-474: The Social Security program began, during President Franklin D. Roosevelt's first term, as a measure to implement " social insurance " during the Great Depression of the 1930s. The Act was an attempt to limit unforeseen and unprepared-for dangers in modern life, including old age, disability, poverty, unemployment, and the burdens of widow(er)s with and without children. Opponents, however, decried

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7812-674: The U.K., Germany, and Sweden, and just over half of mothers in the United States with a child under the age of one work. There is some evidence that legislation for parental leave raises the likelihood of women returning to their previous jobs as opposed to finding a new job. This rise is thought to fall to between 10% and 17%. Simultaneously, there is a decrease in the percentage of women who find new jobs, which falls between 6% and 11%. Thus, such legislation appears to increase how many women return to work post-childbirth by around 3% or 4%. Additionally, it appears that parental leave policies do allow women to stay home longer before returning to work as

7938-409: The UK in the 1980s. When flex first emerged, it was run as a formal scheme for a set contract period, through which employees could opt in and out of a selection of employer-paid benefits, select employee-paid benefits, or take the cash. In recent years increasing numbers of UK companies have used the tax and national insurance savings gained through the implementation of salary sacrifice benefits to fund

8064-496: The United Kingdom, employee benefits are categorised by three terms: flexible benefits (flex) and flexible benefits packages, voluntary benefits and core benefits. "Core benefits" is the term given to benefits which all staff enjoy, such as pension, life insurance, income protection, and holiday. Employees may be unable to remove these benefits, depending on individual employers' preferences. Flexible benefits, often called

8190-467: The United States as well as in other countries where paid leave is available, and this difference may have factors other than the financial constraints which impact both parents. Bygren and Duvander, looking at the use of parental leave by fathers in Sweden, concluded that fathers' workplace characteristics (including the size of the workplace, whether there were more men or women in the workplace, and whether

8316-442: The age of 3 years. The effects of mothers' employment appeared to be the most detrimental when employment started between the sixth and ninth month of life. The reasons for this were uncertain, but there is conjecture that there was something unusual for the group of mothers who returned to work in this time period as they represented only 5% of all families studied. Negative impacts in terms of school-readiness were most pronounced when

8442-501: The combined programs together (OASI and DI) and focus on key measures such as trust fund depletion date, actuarial balance over a 75-year period, and comparisons of program costs to U.S. GDP. Regarding trust fund depletion, the Social Security Trustees in 2024, based on technical work by the Social Security Administration's actuaries, project the combined OASDI trust fund will be depleted in 2035. In 2021,

8568-410: The complexity of types of leave available and because terms such as maternity leave, paternity leave, pre-natal leave, post-natal leave, parental leave, family leave and home-care leave, have different meanings in different jurisdictions. Such terms may often be used incorrectly. Comparing the length of maternity leave (which is common in international rankings) may say very little about the situation of

8694-451: The costs to smaller businesses. Datta Gupta, Smith, & Verneer found in 2008 that, while publicly funded parental leave has benefits, it is very expensive to fund and question if it is the most cost-effective use of funds. The father's quota is a policy implemented by some countries or companies that reserves a part of the parental leave or other types of family leave for the father. If the father does not take this reserved part of leave,

8820-460: The difference between parental uptake duration between birth mothers in same-sex relationships compared to different-sex relationships. Eligibility of parental leave for same sex couples depends on numerous factors: on adoption policies (on whether or not same-sex couples can adopt jointly or not; on whether a single parent is allowed to adopt or not - and if yes, whether the second parent can subsequently adopt - and on surrogacy laws ). According to

8946-534: The different outcomes for women in Denmark are between the "family-friendly" and the "non-family-friendly" sector. In Denmark , the public sector is "family-friendly" because of its generous leave and employee benefits; workers decide which sector to work in based on their preferences and opportunities. The study found that, while in the "family-friendly" sector there was basically no wage loss related to taking parental leave, women did have consistent earnings loss in

9072-487: The effects of which are unknown". However, other studies have shown that paternity leave improves bonds between fathers and children and also helps mitigate the wage gap women face after taking maternity leave. Other psychological perspectives summarise evidence and find that the role of a father in child development is very similar to that of a mother, counteracting the concern that greater paternal involvement in childcare could lead to unforeseen negative consequences. Criticism

9198-418: The employee's gross income and, therefore, are not subject to federal income tax in the United States. Some function as tax shelters (for example, flexible spending, 401(k), or 403(b) accounts). These benefit rates often change from year to year and are typically calculated using fixed percentages that vary depending on the employee’s classification. Normally, employer-provided benefits are tax-deductible to

9324-635: The employees and by the employer(s). The portion paid by employees is deducted from their gross pay before federal and state taxes are applied. Some benefits would still be subject to the Federal Insurance Contributions Act tax (FICA), such as 401(k) and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA. If certain conditions are met, employer provided meals and lodging may be excluded from an employee's gross income. If meals are furnished (1) by

9450-443: The employer and non-taxable to the employee. The exception to the general rule includes certain executive benefits (e.g. golden handshake and golden parachute plans) or those that exceed federal or state tax-exemption standards. American corporations may also offer cafeteria plans to their employees. These plans offer a menu and level of benefits for employees to choose from. In most instances, these plans are funded by both

9576-817: The employer sponsored health benefits described above, the next most common employee benefits are group savings plans (Group RRSPs and Group Profit Sharing Plans), which have tax and growth advantages to individual saving plans. Employee benefits in the United States include relocation assistance ; medical, prescription, vision and dental plans ; health and dependent care flexible spending accounts ; retirement benefit plans (pension, 401(k) , 403(b) ); group term life insurance and accidental death and dismemberment insurance plans; income protection plans (also known as disability protection plans); long-term care insurance plans; legal assistance plans; medical second opinion programs, adoption assistance; child care benefits and transportation benefits; paid time off (PTO) in

9702-645: The employer; (2) for the employer's convenience; and (3) provided on the business premises of the employer they may be excluded from the employee's gross income per section 119(a). In addition, lodging furnished by the employer for its convenience on the business premise of the employer (which the employee is required to accept as a condition of employment) is also excluded from gross income. Importantly, section 119(a) only applies to meals or lodging furnished "in kind." Therefore, cash allowances for meals or lodging received by an employee are included in gross income. Qualified disaster relief payments made for an employee during

9828-474: The expectant male parents. The reason for discrepancies in parental leave between same-sex and different-sex couples is theorized to have several different explanations, usually related to who can be a legal parent. One factor affecting parental leave duration for same-sex couples is the restrictive language found in parental leave policies. The study found that some parental leave policies only referred to heterosexual couples and did not include same-sex couples in

9954-435: The family loses that leave period—that is, it cannot be transferred to the mother. Given the high rates of women's participation in the formal labor force in many parts of the world, there is increasing interest among social scientists and policymakers in supporting a more equal division of labor between partners. Some critics question whether such policies are evidence-based and express concern that they are "a social experiment,

10080-403: The father wanting the mother to take longer leave or other factors; such as the pressure to provide for the household financially. Research in Sweden found that foreign-born fathers are less likely to partake in parental leave than Swedish-born fathers. The authors have theorized that this result might reflect greater instability of labour markets for first-generation migrants. Additionally, there

10206-455: The father's quota and expand childcare in an effort to work towards greater gender equality. According to a 2016 study, the expansion of government-funded maternity leave in Norway from 18 to 35 weeks led mothers to spend more time at home without a reduction in family income. The term 'paternity leave' refers to the leave that is exclusively granted to the fathers to enable them in spending time with their new-born child. Although parental leave

10332-424: The first $ 1,174 of average indexed monthly earnings, plus (b) 32 percent of average indexed monthly earnings between $ 1,174 and $ 7,078, plus (c) 15 percent of average indexed monthly earnings over $ 7,078 For workers who turn 62 in the future, the 90, 32, and 15 percent factors in the computation formula will remain the same but the dollar amounts in the formula (called bend points) will increase by wage growth in

10458-600: The first state in the U.S. to require employers to offer paid parental leave, showed that wages did increase. Parental leave can lead to greater job security. Studies differ in how this helps return to work after taking time off. Some studies show that if a parent is gone for more than a year after the birth of a child, it decreases the possibility that he or she will return. Other studies of shorter leave periods show that parents no longer need to quit their jobs in order to care for their children, so employment return increases. It does not appear that parental leave policies have had

10584-483: The form of vacation and sick pay. Benefits may also include formal or informal employee discount programs that grant workers access to specialized offerings from local and regional vendors (like movies and theme park tickets, wellness programs , discounted shopping, hotels and resorts , and so on). Employers that offer these types of work-life perks seek to raise employee satisfaction, corporate loyalty, and worker retention by providing valuable benefits that go beyond

10710-520: The full retirement age that equals 90 percent of the person's average monthly earnings before retirement. The table shows replacement rates for workers who turned 62 in 2013. The PIA computation formula for disabled workers parallels that for retired workers except the AIME is based on fewer years to reflect disablement before age 62. The monthly benefit amount of a disabled worker is 100 percent of PIA. Benefits for spouses, children, and widow(er)s depend on

10836-783: The full spouse benefit for which they qualify. In addition, Social Security beneficiaries with low income and limited resources may qualify for additional income through the Supplemental Security Income (SSI) program. SSI is separate from the Social Security program, but it is administered by SSA. In 2022, 2.5 million Social Security beneficiaries received additional income through SSI. Social Security payments to beneficiaries, which totaled $ 1.23 trillion in 2022, are generally financed by payroll taxes on workers in Social Security covered employment, trust fund reserves, and income taxation of some Social Security benefits. The payroll tax rate totals 12.4 percent of earnings up to

10962-500: The implementation of flexible benefits. In a salary sacrifice arrangement an employee gives up the right to part of the cash remuneration due under their contract of employment. Usually the sacrifice is made in return for the employer's agreement to provide them with some form of non-cash benefit. The most popular types of salary sacrifice benefits include childcare vouchers and pensions. A number of external consultancies exist that enable organisations to manage Flex packages centred around

11088-650: The individual's normal tax rate, which can prove expensive if there is no financial advantage to the individual from the benefit. The UK system of state pension provision is dependent upon the payment of National Insurance Contributions . Salary exchange schemes result in reduced payments and so are may reduce the state benefits, most notably the State Second Pension. Comprehensive Employment and Training Act Social Security (United States) Bowles–Simpson Commission 2007–2008 financial crisis 2013 budget sequestration Related events In

11214-528: The labor market include an increase in employment, changes in wages, and fluctuations in the rate of employees returning to work. Leave legislation can also impact fertility rates. A study in Germany found that wages decreased by 18 percent for every year an employee spends on parental leave. However, after the initial decrease in wages, the employee's salary rebounds faster than the salary of someone not offered parental leave. A study of California's leave policy,

11340-521: The large baby-boom generation however, is lowering balances. Without legislative changes, trust fund reserves are projected to be depleted in 2033 for the OASI fund. Should depletion occur, incoming payroll tax and other revenue would be sufficient to pay 77 percent of OASI benefits starting in 2035. With few exceptions, all legal residents working in the United States have an individual Social Security Number . Social Security timeline A limited form of

11466-494: The largest group of beneficiaries, with 52.4 million retired workers or family members receiving monthly payments. Social Security Disability Insurance benefits were paid to 7.4 million disabled workers and 1.2 million dependents (children and spouses). About 5.8 million individuals, including 2 million children, received some type of survivor benefit from Social Security. Some individuals qualify for more than one type of benefit, but program rules on dual entitlement generally prevent

11592-427: The law. Workers with 40 quarters of coverage (QC) are "fully insured" and eligible for retirement benefits. Retirement benefit amounts depend upon the average of the person's highest 35 years of "adjusted [for inflation]" or "indexed [for inflation]" earnings. A person's payroll-taxable earnings from earlier years are adjusted for economy-wide wage growth, using the national average wage index (AWI), and then averaged. If

11718-496: The legislation, leading to increased barriers for same-sex parents to receive paid leave. Another significant barrier comes when same-sex couples try adopting their child. In 15 of the 34 OECD countries examined, same sex couples cannot legally adopt a child together. In these countries, same-sex couples may have one person in the relationship adopt their child as a single parent. Only one parent will be provided parental or adoption-related leave through this adoption strategy. While there

11844-522: The minimum benefits and eligibility requirements are stipulated by law. Unpaid parental or family leave is provided when an employer is required to hold an employee's job while that employee is taking leave. Paid parental or family leave provides paid time off work to care for or make arrangements for the welfare of a child or dependent family member. The three most common models of funding are government-mandated social insurance/social security (where employees, employers, or taxpayers in general contribute to

11970-474: The most affected by these criteria are usually younger, single, less educated or from migrant backgrounds. In addition to discrepancies present in eligibility, there is variation among expecting mothers who utilize parental leave benefits. For example, research performed by Kil, Wood and Neels(2018) found that native-born Belgian women had higher uptake of parental programs (52%) in comparison to first-generation Belgian citizens from Turkey and Morocco, whose uptake

12096-426: The most generous in the world. Partly in an initiative to combat the "motherhood penalty", Norway in 1993 initiated a policy change to incentivize paternal leave , the so-called " father's quota ", and Sweden followed suit in 1995. This means a certain number of parental leave-days can only be used by the father, and are otherwise lost. In countries in which leave entitlements include a father's quota, there has been

12222-476: The mother worked at least 30 hours per week. These findings were complicated by many factors, including race, poverty, and how sensitive the mother was considered. The effects were also greater in boys, which is explained by the fact that many analysts consider boys more vulnerable to stress in early life. Employee benefit The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across

12348-469: The national economy, as measured by the AWI. Because the AIME and the PIA calculation incorporate the AWI, Social Security benefits are said to be wage indexed. Because wages typically grow faster than prices, the PIAs for workers turning 62 in the future will tend to be higher in real terms but similar relative to average earnings in the economy at the time age 62 is attained. Monthly benefit amounts are based on

12474-691: The neoclassical model would predict "statistical discrimination" against hiring women of child-bearing years. To counteract this, some countries have introduced policies to increase rates of paternity leave to spread the cost impact more evenly across the labor market. If women take long parental leaves, the neoclassical model would predict that their lifetime earnings and opportunities for promotion will be less than their male or childfree counterparts—the " motherhood penalty ". Women may seek out employment sectors that are "family-friendly" (i.e., with generous parental leave policies), resulting in occupational sex segregation . Nielsen, Simonsen, and Verner examine what

12600-619: The organization. As such, it is one component of reward management . Colloquially, "perks" are those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well or have seniority. Common perks are take-home vehicles , hotel stays, free refreshments, leisure activities on work time ( golf , etc.), stationery , allowances for lunch , and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist. The Bureau of Labor Statistics, like

12726-544: The paid leave for the father, meaning it can't be transferred to the mother and lapses unless he uses it. Among the earliest countries to actively push for increased usage of paternity leave are the Nordic welfare states, starting with Sweden making parental leave gender neutral in 1974 and soon followed by Iceland, Denmark, Norway and Finland. These countries lack a unified concept of paternity leave, each imposing different conditions, ratios and timescales, but are regarded as among

12852-432: The parents want the child and can meet the child's needs but because children are expected to support their parents. Some see children as responsible for supporting all those in older generations in the society (not just the child's specific parents); their earnings are expected not to be saved for the children's own old age, but to be spent on the earlier generations' demand for social security and pensions for which there

12978-468: The past, legislation has been enacted to prevent trust fund depletion. Should the trust funds be depleted, Social Security would still have revenue coming into the system from payroll taxes. The Social Security trustees estimate that revenue would be sufficient to pay 77 percent of the program's benefits. There has been debate about a trust fund depletion scenario regarding whether monthly benefits would be lowered or whether full amounts would be paid but not on

13104-423: The payment of two full benefits. For example, a person eligible for a retirement benefit and a higher spouse benefit will receive the full retirement benefit and a partial spouse benefit. The dual entitlement rules disproportionately affect women (7 million women in 2022 ) because historically they have earned less than current or former husbands and this leads to retirement benefits for women that are often lower than

13230-552: The period 1969–1994 revealed that the decrease of infant mortality rates varied based on length of leave. A 10-week leave was associated with a 1–2% decrease; a 20-week leave with 2–4%; and 30 weeks with 7–9%. The United States, which does not have a paid parental leave law, ranked 56th in the world in 2014 in terms of infant mortality rates, with 6.17 deaths per every 1,000 children born. The research did not find any infant health benefits in countries with unpaid parental leave. Paid leave, particularly when available prior to childbirth, had

13356-400: The policy change. However, public or subsidized daycare was greatly expanded at the same time, so Rønsen and Kitterød did not find that the "father's quota" was solely responsible for the timing of work entry. But it can be understood to have an effect on division of household labor by gender when both parents can take time to care for a new baby. Another impact from fathers taking more leave

13482-545: The poor, dependent children, spouses, survivors and the disabled. Poor farms were common in the US before Social Security took effect, then most disappeared by about 1950. By 1950, debates moved away from which occupational groups should be included to get enough taxpayers to fund Social Security to how to provide more benefits. Changes in Social Security have reflected a balance between promoting "equality" and efforts to provide "adequate" and affordable protection for low wage workers. The larger and better known programs under

13608-402: The probability of returning to an old job falls in the second month after childbirth before dramatically rising in the third month. Although this legislation thus appears to have minimal effect on women choosing to take leave, it does appear to increase the time women take in leave. Maternity leave legislation could pose benefits or harm to employers. The main potential drawback of mandated leave

13734-624: The program. Dahl et al., (2014) research additionally found a snowball effect occurring in workplaces where fathers using paternity leave.This means with every additional coworker utilizing benefits of parental leave in the office, the likelihood of others to also use the program benefits. There are competing arguments to why peers have an influence to the duration of paternal leave of an expecting parent. The first hypothesis stems from mothers learning from their peers about parental leave programs they were previously unaware of. This increase in awareness would lead to more mothers utilizing parental leave for

13860-412: The proposal as socialism. Secretary of Labor Frances Perkins wrote that during a Senate Finance Committee hearing, Senator Thomas Gore (D-OK) asked "Isn't this Socialism?" She replied that it was not, but he continued, "Isn't this a teeny-weeny bit of Socialism?" The provisions of Social Security have been changing since the 1930s, shifting in response to economic worries as well as coverage for

13986-516: The provision of an Intranet or Extranet website where employees can view their current flexible benefit status and make changes to their package. Adoption of flexible benefits has grown considerably, with 62% of employers in a 2012 survey offering a flexible benefit package and a further 21% planning to do so in the future. This has coincided with increased employee access to the internet and studies suggesting that employee engagement can be boosted by their successful adoption. "Voluntary benefits"

14112-470: The reform) for moderately and highly educated women after the leave, which could be because the women returned to work part-time or because of a "motherhood penalty", where employers discriminate against mothers, taking the six-month leave as a "signal" that the woman will not be as good of an employee because of her mothering responsibilities. Rasmussen analyzed a similar natural experiment in Denmark with

14238-479: The reform, first-time mothers who took the paid leave after the reform were more likely to be employed after their leave, and less likely to stay out of the labor force. The authors point to similar results of full-time, short paid parental leave observed in Canada in 2008 by Baker and Milligan, and in Germany in 2009 by Kluve and Tamm. However, Joseph et al. also found that wages were lower (relative to women before

14364-602: The same for fathers. The Marshall Islands , Micronesia , Nauru , Palau , Papua New Guinea , Tonga and the United States are the only seven countries in the United Nations that do not require employers to provide paid time off for new parents. Private employers sometimes provide either or both unpaid and paid parental leave outside of or in addition to any legal mandate. Research has linked paid parental leave to better health outcomes for children, as well as mothers. Amartya Sen and Martha Nussbaum have developed

14490-404: The special minimum benefit in 2019. The benefits someone is eligible for are potentially so complicated that potential retirees should consult the Social Security Administration directly for advice. Many questions are addressed and at least partially answered on many online publications and online calculators. The Social Security Administration (SSA) provides benefit estimates to workers through

14616-495: The state level. However, ERISA does not generally apply to plans by governmental entities, churches for their employees, and some other situations. Under the Obamacare or ACA's Employer Shared Responsibility provisions, certain employers, known as applicable large employers are required to offer minimum essential coverage that is affordable to their full-time employees or else make the employer shared responsibility payment to

14742-498: The state or local level. Social Security payroll taxes are collected by the federal Internal Revenue Service (IRS) and are formally entrusted to the Federal Old-Age and Survivors Insurance (OASI) Trust Fund and the federal Disability Insurance (DI) Trust Fund, the two Social Security Trust Funds . Social Security revenues exceeded expenditures between 1983 and 2009 which increased trust fund balances. The retirement of

14868-467: The system solvent for 75 years. The figure is designed to illustrate the size of the deficit. Legislation could close the deficit in ways other than raising the payroll tax rate. Because taxable earnings are a fraction of GDP, sometimes the system's finances are put into context by using GDP. Social Security's cost are currently 5.2 percent of U.S. GDP. Program costs will rise to 6.3 percent of GDP by 2076, and then decline to 6.0 percent of GDP by 2097. In

14994-702: The taxable maximum (the rate is 6.2 percent from workers and 6.2 percent from employers and 12.4 percent from the self-employed). The OASI Trust Fund and the DI Trust Fund are legally separate. For employees and employers combined, the OASI payroll taxes are 10.6 percent and the DI payroll taxes are 1.8 percent. In 2022, trust fund reserves for the OASI and DI programs were $ 2.7 trillion and $ 118 billion, respectively. Income taxation of some Social Security benefits brought in $ 47.1 billion for OASI and $ 1.6 billion for DI in 2022. Assessments of system financing often focus on

15120-634: The uptake of parental leave by fathers could enable the workforce participation of women, leading to improved economic outcomes for families as well as the country. The eligibility and uptake of parental leave programs are not consistent among all demographics of expecting mothers. In most European countries, parental leave is granted to parents, usually after maternity and paternity leave. In some countries, parental leave has more restrictive requirements than maternity leave or paternity leave. Research by Marynissen, Wood and Neels (2021) found that 26.37% of mothers in Belgium are not eligible for parental leave. This

15246-527: The worker has fewer than 35 years of covered earnings, these non-contributory years are assigned zero earnings. The sum of the highest 35 years of adjusted or indexed earnings divided by 420 (35 years times 12 months per year) produces a person's Average Indexed Monthly Earnings or AIME. The AIME is then used to calculate the Primary Insurance Amount (PIA). For workers who turn 62 in 2024, the PIA computation formula is: (a) 90 percent of

15372-571: The workplace was part of the private or public sector) influenced the length of parental leave for fathers, as did the presence of other men who had taken parental leave at an earlier point in time. As of 2016 paternity leave accounts for 25% of paid parental leave in Sweden. A 2023 study found that paternity leave causes attitudinal change on gender issues. When paternity leave is made available to fathers, parents increasingly support gender-egalitarian socioeconomic policies and women's rights issues. In 2013, Joseph, Pailhé, Recotillet, and Solaz published

15498-431: Was $ 1,706. The total cost of the Social Security program for 2022 was $ 1.244 trillion or about 5.2 percent of U.S. gross domestic product (GDP). Social Security is funded primarily through payroll taxes called the Federal Insurance Contributions Act (FICA) or Self Employed Contributions Act (SECA). Wage and salary earnings from covered employment, up to an amount determined by law (see tax rate table), are subject to

15624-417: Was inadequate savings. The neoclassical model of labor markets predicts that, if the cost of hiring women of child-bearing years is anticipated to increase (either because the employer is mandated to pay for maternity leave or because she will be absent from work on public leave), then the "demand" for women in the labor market will decrease. While gender discrimination is illegal, without some kind of remedy

15750-669: Was relatively low (34%). The difference in uptake can be attributed to factors such as the flexibility of the parental leave, culture of the workplace, cultural ideals of paid leave, not knowing about the program itself and other normative factors that influenced the utilization of paid leave. Research has found that mothers in same-sex relationships are less likely to uptake parental leave than mothers in different-sex relationships. Evertsson and Boye (2018) found that birth mothers in same-sex relationships, on average, took seven weeks less parental leave than birth mothers in different-sex relationships. The authors reference that gender norms result in

15876-594: Was to increase the non-transferable period to four months, but due to inability to reach consensus among member states , a compromise was reached at two months. (note: this refers to the specific type of leave called parental leave, under EU law there are different types of leave, such as maternity leave, paternity leave, parental leave, and carer leave which are regulated differently). For more, see Paternity leave and its effects . Comparison between countries in term of employee benefits to leave for parents are often attempted, but these are very difficult to make because of

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