How long can you pay your bills when mom is taking a 45% pay cut? California couples need to ask themselves this question before getting pregnant. You may enjoy up to eighteen weeks of paid leave in California between your pregnancy, maternity leave, and time bonding with baby. This sounds great until you realize you are getting only a fifty five percent income replacement. And many CA workers don't qualify. Know your facts before you conceive.
CA Paid Family Leave
The California Paid Family Leave Act provides up to six weeks of paid leave to take care of a sick or injured family members. California is one of only two states with such a benefit. For those concerned about maternity benefits, you get six additional weeks of paid time off to bond with your healthy baby.
An 18 Week 45% Pay Cut
Workers who pay into the California SDI program are eligible for the paid family leave benefit as well. The state short term disability program allows for up to four weeks of time prior to delivery, plus eight weeks of paid time for a c-section delivery. Add six weeks for your time to bond with baby to get eighteen weeks of total paid time for a normal pregnancy, and health baby.
This sounds great until you realize these eighteen weeks come with a 45% pay cut or more. Many families are living check to check before mom gets pregnant, gets her eighteen week pay cut, then have to face the extra bills to feed, clothe, and raise a child.
Do You Qualify for Benefits?
Not every CA worker is automatically enrolled. Know the rules before getting pregnant. And if you can't afford an extended pay cut, consider purchasing supplemental short term disability coverage to increase your maternity leave income.
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