Money·2 min read

Why Giving Federal Workers Paid Parental Leave Could Be Good for Your Wallet

September 24, 2020

The bad news: the US of A is the only developed country that doesn’t promise all new parents paid time off. The good news: A lot more moms and dads are about to get it. Starting October 1, the federal gov (America’s biggest employer) will give workers 12 weeks off – as long as they’ve been with the gov for a year and stick around at least 12 weeks post-leave.

Here’s what paid parental leave for federal employees could mean for your wallet.

You might get more paid time off to bond with baby. Even if Uncle Sam isn’t your boss. Some say this policy could pressure private employers to get more generous with their own. Bonus: staying home longer – while still cashing your paycheck – could mean more savings if you delay paying for childcare.

You might face fewer medical bills. Studies indicate that paid parental leave leads to healthier kids and parents. Think: fewer preterm births, higher instances of healthy birth weights, and more consistent care. That means fewer trips to the doc, less medicine, and lower costs. 

The economy could get a boost. Paid parental leave has been linked to a higher number of women in the workforce. And higher productivity for all workers. Your boss isn’t the only one into that idea. The economy usually likes efficiency and profitability, too.

theSkimm: Paid parent-child bonding time is coming soon to gov workers. This might pressure more private employers to update their own HR handbooks. And do something nice for the economy. (Yes, please.)

Psst...thinking about starting a fam? Here’s what you need to know about making the most of your parental leave.

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