{"id":437814,"date":"2026-04-16T08:54:12","date_gmt":"2026-04-16T08:54:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/437814\/"},"modified":"2026-04-16T08:54:12","modified_gmt":"2026-04-16T08:54:12","slug":"can-you-and-your-employer-afford-it-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/437814\/","title":{"rendered":"can you and your employer afford it? \u2013 The Irish Times"},"content":{"rendered":"

We were all babies once. Early-stage humans grow up to be employees, entrepreneurs, taxpayers, citizens, workers, friends, family and part of our community. If we want the human race to continue, pregnancy<\/a> is not optional or just nice to have, it\u2019s essential.<\/p>\n

Even so, pregnancy and new parenthood<\/a> can be a needlessly stressful and financially insecure time for many working parents in Ireland says Rebecca*, a reader who got in touch with us about maternity leave finances. <\/p>\n

Rebecca and Simon*, both professionals living in Dublin, are excitedly expecting their first child after waiting a few years for some financial security. They\u2019ve been setting aside savings to help offset costs. The couple know they\u2019ll have to cut their cloth to suit their measure, but the first year is a big financial worry.<\/p>\n

Thankfully, new mums have a right to maternity leave benefit of \u20ac299 per week for 26 weeks from the State, with an option for another 16 weeks (unpaid), but Rebecca is not sure if her employer will pay anything on top of that during her time off.<\/p>\n

Rebecca is a well-paid private sector professional who makes upwards of \u20ac1,000 a week. If her employer does not provide a top-up payment during her leave then she\u2019s down about \u20ac3,000 a month or \u20ac36,000 for the year. That\u2019s a big chunk of change when your household has just gone from two to three.<\/p>\n

There are other supports. Her partner is eligible for two weeks of paid paternity benefit, also at \u20ac299 a week, if he takes leave from work. There\u2019s also a statutory entitlement to a full nine weeks of paid parent\u2019s leave of \u20ac299 a week for parents of children under the age of two if you have enough PRSI payments. Employers are not required to top this up. <\/b><\/p>\n

[\u00a0RT\u00c9’s Sarah McInerney on telling her manager she was pregnantOpens in new window<\/a>\u00a0]<\/p>\n

If it\u2019s only time the parents need, then they can avail of unpaid parental leave of 26 weeks for those who are under 12, or under 16 if they have a disability. <\/p>\n

Rebecca says she was shocked when she ran the numbers despite planning ahead and having the security of a partner who earns well. When your financial circumstances change because you\u2019ve had a baby, your big bills like mortgage or rent, heating, electricity, car-related costs and groceries remain the same, she says.<\/p>\n

\u201cMost couples don\u2019t think about this as they\u2019re so excited to have a baby. There\u2019s some financial planning but you don\u2019t expect your wages to drop so much.\u201d<\/p>\n

This begs the questions: in a high-cost environment can you, and your employer, afford for you to have a baby? As importantly, can society and the Government afford for you not to?<\/p>\n

Reality check<\/p>\n

Employers must legally permit time off for maternity leave but they have no obligation to pay anything financially to their employee during this leave. Unfortunately, this has created a hierarchy of parenthood and disadvantages some babies.<\/p>\n

Large organisations and multinational employers (those with 250 or more workers) tend to top-up mums\u2019 benefit as, although maternity leave can be a logistical, organisational and financial challenge, it\u2019s easier for them to absorb the cost and organise a replacement. These companies also know that polices that support parents are good for long-term recruitment and retention. <\/p>\n

Small enterprises may struggle to provide a financial top-up as they have fewer resources and less defined procedures, and they will have to find someone and pay them to fill in while that person is on leave. <\/p>\n

Approximately 70 per cent of all women in receipt of maternity benefit in Ireland received a top-up payment from their employer in 2021, according to the CSO. Of companies that do provide a top-up, most pay it for the full 26-week statutory period.<\/p>\n

While nearly all public sector employees receive a 100 per cent salary top-up, private sector availability is lower, with roughly 52 per cent of private companies offering this benefit. <\/p>\n

[\u00a0\u2018Working\u2019 or \u2018stay-at-home\u2019 parent is a false choice. Most of us want something in betweenOpens in new window<\/a>\u00a0]<\/p>\n

Top-ups are most common in public administration and defence, but only about 19 per cent of employees in the information and communication sector and just over 20 per cent in the accommodation and food service sector get them, says the CSO. <\/p>\n

The system benefits parents working in the public sector, multinationals or large organisations. They\u2019re well paid, have some job security and enjoy a range of parental and health benefits. <\/p>\n

Other workers on low wages, those with a manual job or working in the gig economy are most likely to be totally reliant on State entitlements, so for financial reasons they\u2019ll probably need to return to work when the baby is just a few months old. <\/p>\n

Dads feel the financial, professional and family pressures too. Among fathers, approximately 55 per cent take paternity leave, but only 25 per cent take the additional nine weeks of paid parent\u2019s leave available to them, largely because they can\u2019t take the financial hit.<\/p>\n

Finances, not choices<\/p>\n

Maternity and paternity leave is an important time for the baby and the parents, but also for wider society. Stability and safety in a child\u2019s early years pay dividends later in terms of their positive contribution to their communities and economy.<\/p>\n

No babies, no human race. Yet the Government and employers seem to forget how vital these little creatures are to them in the future. <\/p>\n

A quick trawl of the Oireachtas website shows one public representative in particular, Emer Currie<\/a>, has been very vocal about the need for pay-related parent\u2019s benefits recently. Government policies are not joined-up enough when it comes to new parents whose babies are in their first year of life, she says. <\/p>\n

\u201cParents are making financial decisions, not always free choices. Parents can find themselves in a catch-22 situation where they either want to stay at home but cannot afford to do so, or want to go back to work and cannot source childcare for babies under 12 months of age,\u201d Currie says.<\/p>\n

Ireland is generous with time off for having a baby, but not with payments to support that leave. The Republic offers the second longest period of maternity leave in the EU, after Bulgaria<\/a>. <\/p>\n

France<\/a> and Germany<\/a> provide for 16 and 14 weeks of maternity leave respectively but pay 100 per cent of salary. Spain<\/a> offers 17 weeks of maternity and paternity benefit at 100 per cent of salary, as well as two weeks of the equivalent of parent\u2019s benefit for each parent, for a total of 38 weeks, compared to 46 weeks in Ireland.<\/p>\n

It\u2019s the finances though that seem to be the rub for parents like Rebecca and Simon. A large majority of OECD<\/a> countries have earnings-related payments; Ireland is an outlier. Payments are lowest in Ireland and the UK, where fewer than one-third of gross average earnings are replaced by maternity benefit. Countries such as Lithuania, Austria, France and Germany have benefits based on past income. <\/p>\n

[\u00a0\u2018I returned to work after maternity leave and was issued with a notice of redundancy\u2019Opens in new window<\/a>\u00a0]<\/p>\n

In Finland they have extended leave coupled with lower rates, so there is a trade-off. <\/p>\n

We have above average leave time here, but the lack of financial supports reduces parents\u2019 choices in the crucial first year of the baby\u2019s life, says Currie.<\/p>\n

The good news is that the Government is planning to do more. This autumn, it is issuing a public consultation document on pay-related parent\u2019s benefits and inviting the public, employers and other stakeholders to have their say.<\/p>\n

Make sure you do. <\/p>\n

Margaret E Ward is chief executive of Clear Eye, a leadership consultancy. margaret@cleareye.ie<\/a><\/p>\n

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