How to Get Paid During Maternity Leave

Andrew Weber is a senior director of Planning Philosophy, Research and Guidance at Northwestern Mutual.

Congratulations—you’re expecting! Between prepping the nursery, scheduling prenatal visits and shopping for essential baby gear, you probably have a long list of tasks to check off during the coming months. If you’re a working parent, you may have to include one more item: figuring out how to make up pay while you’re on maternity leave.

Fewer than a quarter of civilian workers have access to paid family leave, according to recent data from the U.S. Bureau of Labor Statistics. If you don’t have paid family leave, that means you may need to do a little more planning to ensure you’re able to make ends meet after your baby is born.

Federal and state laws about paid maternity leave

Most doctors recommend mothers take six weeks for recovery after giving birth naturally and eight weeks after a cesarean section—but no federal law guarantees that employers pay you for this time. The good news is that the Family and Medical Leave Act (FMLA) allows many employees to take up to 12 weeks off to care for a newborn child. Employers must grant the leave but are not required to pay you. FMLA applies to mothers and fathers who:

• Have worked for the employer for a minimum of 12 months or 1,250 hours over the past year.
• Are employed by an organization with 50 or more employees within 75 miles.

Unfortunately, if your employer doesn’t meet these thresholds, you don’t have a federally provided right to parental leave. That’s the case whether it’s paid or unpaid. (See the information below about state law).

To take FMLA leave, you must inform your employer in advance. Pregnancy requires at least 30 days’ notice. Throughout the request and leave, you’ll need to follow the FMLA regulations and your employer’s leave policy. For example, your employer can require occasional check-ins.

While FMLA protects many workers’ jobs and group health benefits, it doesn’t require an employer to pay employees while they’re on maternity leave. Unless an employer offers full paid leave, you’ll have to plan ahead.

When it comes to state law, you may get more protection. A few states require paid maternity or parental leave; for example, in New York employees get up to 12 weeks of paid family leave.

Some don’t mandate payment but offer job protection, even at small employers. This essentially means that you’re guaranteed to have a similar role and pay when you return to work, and your employer can’t demote, terminate or otherwise penalize you.

State laws vary widely and can provide a mix of protections. For example, California’s 2019 New Parent Leave Act allows new parents who work for an organization with at least 20 employees to take leave for up to 12 weeks. It applies to both part-time and full-time employees. But job protection isn’t automatic. Research the law for your state and talk with professionals who can help you figure it out.

Clarify your employer’s parental leave policy

Connect with your HR department to clarify your employee benefits. About 40 percent of companies are offering paid parental leave, according to the Society for Human Resources Management’s 2024 survey. You’ll want to ask how many weeks are included and if you can expect to receive your full pay during this time.

Other ways your employer might support you during maternity leave

If your company doesn’t offer a parental leave policy, it may still help you make up income during your maternity leave. Short-term disability insurance can be used for maternity leave and is one key way employers have traditionally helped new moms have cash flow during a leave. It’s designed to cover lost income due to a temporary injury or illness. Most policies offered through an employer will cover a percentage of your income following the birth of a child. If you’re not already pregnant, check to see if you need to sign up for this benefit, as it may be optional at some employers and may not kick in right away. If you’re also taking FMLA leave, your short-term disability benefits may run concurrently with your FMLA leave. This means the time you’re on short-term disability can count toward your 12 weeks of FMLA leave.

Some employers may also allow you to use a stockpile of paid time off (PTO) or sick days. This may even include borrowing forward into future time off. Just be aware that doing so might leave you owing money if you leave the company prior to accruing the days that you borrow.

Your employer may also offer a flexible spending account (FSA) that can be used to cover child care bills when you return to work. FSAs allow you to use pretax dollars to cover qualified expenses.

Make a financial game plan with your partner

Financially preparing for a baby goes beyond maternity leave. As early as possible, make some time to talk to your partner about your financial future.

• What’s your plan for child care, and how will you fund it?
• Does your partner’s employer offer parental leave benefits?
• Do you have enough life insurance in place? Even stay-at-home parents can get life insurance and can benefit from this protection.
• If you’ll pause your retirement contributions during parental leave, what’s your plan for getting back on track?
• Do you have a strong emergency fund? Experts recommend saving up six months’ worth of expenses, but you may want to increase your target if you can.
• Do you plan to buy a new house for your larger family?

Once you have addressed these questions, you and your partner can update your monthly budget. Planning ahead in this way can help alleviate stress before the baby comes home. This is also a good time to get some other financial ducks in a row. This includes updating your will and life insurance policies. You’ll also want a game plan for the possibility that a disability could keep you from earning an income. You might also want to research college savings plans for your little one.

This may all seem a little overwhelming, and that’s OK. You’ll get through this (just like many other parents have). It’s a great time to sit down with your Northwestern Mutual financial advisor. Together, you can talk through your maternity leave and build a financial plan for your future.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP^®, CERTIFIED FINANCIAL PLANNER^®, and CFP^® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.