Plan for parental leave

Plan for Parental Leave: A Financial Guide for Expecting Parents

Preparing for a new addition to the family is an exciting time, but it also comes with a host of responsibilities and considerations, especially when it comes to planning for parental leave. Understanding your employer's parental leave policies and preparing financially for this period is crucial for ensuring a smooth transition into parenthood. Here’s a comprehensive guide to help you navigate this significant life event.

14 June 2024 10:02
6 min read

Understanding Your Employer's Parental Leave Policies

The first step in planning for parental leave is to thoroughly review your employer's parental leave policies. Each company has its own set of rules and benefits, and it's essential to know what you're entitled to. Here are some key aspects to consider:

Duration of Leave

Find out how much time you are allowed to take off. Some employers offer a standard minimum of 63 days of leave up to 365days (including 35 days of pre-natal).
Paid vs. Unpaid Leave

Determine if your leave will be paid, unpaid, or a combination of both. This will significantly impact your financial planning. During first 185 days (including 35 days of pre-birth) are paid with 80% of the average daily income based on the last calendric year, and after that, only 50% of the average daily income based on the last calendric year. If the parent is returned to work prior 365 days, he has the right to take two hours off every day and fully compesated.
Job Security

Ensure your position will be held for you upon your return. The Work Code guarantees up to 365 days paid leave with job protection for eligible employees.
Eligibility Requirements

Check if there are any specific requirements you need to meet to qualify for parental leave, such as a minimum tenure with the company.

Assess Your Financial Situation

Once you understand your leave entitlements, the next step is to assess your current financial situation. This involves taking a close look at your income, expenses, savings, and any other financial resources. Here are some steps to help you get started:

Create a Budget

Draft a budget that accounts for reduced or lost income during your leave. List all your regular expenses, including mortgage or rent, utilities, groceries, and any other recurring costs.
Evaluate Saving

Determine how much you have in savings and how long it will last if you need to dip into it. Consider setting aside additional funds specifically for this period.
Seek Financial Assistance

At Raiffeisen Bank Albania, we provide a range of financing solutions to suit your needs that can help ease the financial burden.

Communicate with Your Employer

Maintain open communication with your employer throughout your planning process. Discuss your leave plans well in advance to ensure a smooth transition and to clarify any questions you might have about your benefits and entitlements. By taking proactive steps, you can ensure a more comfortable and less stressful transition into parenthood. Remember, thorough preparation can make a significant difference, allowing you to focus on what truly matters – welcoming and bonding with your new baby.

These topics might also interest you.

Understanding your Current Financial Situtation

Before making any big decisions, it's crucial to understand your current financial standing. Take a close look at your income, expenses, savings, and debts.

Read more
Start Saving for Education Early

The cost of education can be substantial, so it's wise to start saving early.

Read more