Parental leave allowance: three examples to make things clear

On 1 December 2016, the terms of parental leave were amended substantially, in particular as regards substitute income. This income now varies according to your salary, working time and the leave arrangement chosen. Let us explain how this works:

The substitute income principle

Throughout the period of your parental leave you receive “substitute income” paid by the Caisse pour l’avenir des enfants (CAE). This income is treated as a salary and is, therefore, subject to social security contributions and tax. Its amount varies according to your salary, the number of hours worked each week and the leave arrangement chosen from among the options shown in the table below.

If you work on a full-time basis (40-hour week), the gross amount of the substitute income is currently between EUR2,570.93 and EUR4,284.88 for full-time parental leave of 4 or 6 months. Thus, a full-time employee who earns EUR3,500 will receive a substitute income of EUR3,500. Someone who earns EUR5,000 will receive the maximum substitute income of EUR4,284.88. The CAE provides a simulator, which enables you to quickly calculate the substitute income to which you are entitled.

If you take part-time parental leave, you will receive the sum:

• of your salary corresponding to your working time during your parental leave (50% or 80% of your usual salary),
• plus the substitute income corresponding to your rate of parental leave (50% or 20% of the amount to which you would be entitled on a full-time basis).

Example 1

Example 2

Example 3

_{*Parents on split leave have four periods of one month’s leave. For each of these periods, they will therefore receive the substitute income to which they are entitled for full-time leave.}