Practical advice on parental leave and parental pay
Sponsored by Länsförsäkringar
There are several aspects to consider when planning parental leave between parents. One that is easily forgotten is the additional parental pay that many employers pay out for those who have a collective agreement. Together with Länsförsäkringar, we explain more about parental pay and provide other practical advice to help you plan your parental leave and your family finances.
Advice on parental leave and parental pay
Many people think it is natural for the mother to stay at home for most of the parental leave, as many as 23 % according to Länsförsäkringar's survey. 11 % think that the person who earns the least should stay at home the most, and 34 % think that the parents should share parental leave equally. These statistics clearly show how we all think differently on this issue and that there is no one right way to divide parental leave. It's all about what suits your family. However, it is good and important to understand all aspects of the decision in order to make the most informed choice possible, both in terms of family finances and gender equality.
Family finances and gender equality during parental leave
Statistics show that it can be financially advantageous to share parental leave equally. Those who have a collective agreement through their work are entitled to parental pay, which is an extra salary from the employer. This is paid in addition to the parental allowance you receive from the Swedish Social Insurance Agency.
Many people receive a parental allowance equivalent to about 10 % of the salary below the salary ceiling and about 90 % of the entire salary above the salary ceiling. However, this can vary depending on how long you have been employed and which collective agreement you are covered by. Parental pay is often applicable from the third month of parental leave up to one year, but this also varies. Talk to your employer about what applies to you!
Apart from the financial aspect of sharing parental leave equally, there are many other benefits. Among other things, it gives both parents the opportunity to build a good relationship with their child early on. But it is also beneficial that both parents' working lives are equally affected in the future, in terms of salary development and pensions, for example. With the economic situation in the world right now, it is especially important to create a stable foundation in working life and think long-term. If you don't already have a savings account, now might be a good time to start one, both for yourself and your family's finances. It is also smart to start saving for your children as early as possible, as a good financial foundation often eases the transition into adulthood.
What to consider when one of the parents works part-time
It is common for a parent to start working part-time when the children start kindergarten. This decision benefits the family in many ways, but it should also be understood that the parent working part-time will not have as much money set aside for retirement. Therefore, it is a good idea for the family to make private pension savings for the parent who works part-time during the early years.
A buffer via a savings account is also highly relevant if you choose to organize family life this way, to reduce stress if something unforeseen happens. Like now, when some expenses are rising a bit while we can see high inflation and interest rate hikes.
On the Länsförsäkringar website, there is a calculator that helps calculate how much should be saved to compensate the parent who works part-time.
