My finances, my projects, my life
August 11, 2022

Parental leave allowance: three examples to make things clear

  Compiled by myLIFE team me&myFAMILY April 28, 2017 3824

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.

 FULL-TIME WORK (40H/WEEK)HALF-TIME WORK OR MORE (≥20H/WEEK)QUARTER-TIME WORK OR MORE (≥10H/WEEK)
Full-time parental leave of 4 or 6 months
Half-time parental leave of 8 or 12 months
Parental leave of one day per week for up to 20 months
Split parental leave: Four months over a maximum period of 20 months

If you work on a full-time basis (40-hour week), the gross amount of the substitute income is currently between EUR1,998.59 and EUR3,330.98 for full-time parental leave of 4 or 6 months. Thus, a full-time employee who earns EUR2,500 will receive a substitute income of EUR2,500. Someone who earns EUR5,000 will receive the maximum substitute income of EUR3,330.98. 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

NADINE (AGED 31)
GROSS MONTHLY SALARY: EUR 5,000
WORKING TIME: 100%
F FULL-TIME PARENTAL LEAVE (OR SPLIT LEAVE OF 4 MONTHS*)IF 50% PART-TIME PARENTAL LEAVEIF 20% PART-TIME PARENTAL LEAVE
Gross monthly substitute income3.330,98€1.665,49€666,20€
Gross monthly salary0€2.500€4.000€
Total gross monthly salary during parental leave3.330,98€4.165,49€4.666,20€

Example 2

FRANÇOISE (AGED 28)
GROSS MONTHLY SALARY: EUR 2,800
WORKING TIME: 100%
IF FULL-TIME PARENTAL LEAVE (OR SPLIT LEAVE OF 4 MONTHS*)IF 50% PART-TIME PARENTAL LEAVEIF 20% PART-TIME PARENTAL LEAVE
Gross monthly substitute incomeEUR 2.800EUR 1.400EUR 560
Gross monthly salary0€EUR 1.400EUR 2.240
Total gross monthly salary during parental leaveEUR 2.800EUR 2.800EUR 2.800

Example 3

JEAN (AGED 37)
GROSS MONTHLY SALARY: EUR 4,500
WORKING TIME: 75%
IF FULL-TIME PARENTAL LEAVE (OR SPLIT LEAVE OF 4 MONTHS*)IF 50% PART-TIME PARENTAL LEAVEIF 20% PART-TIME PARENTAL LEAVE
Gross monthly substitute incomeEUR 2.498,23EUR 1.249,12
Gross monthly salary0€EUR 2.250NOT AUTHORISED
Total gross monthly salary during parental leaveEUR 2.498,23EUR 3.499,12

*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.