The amount to save before a maternity or parental leave is the gap between what you take home now and what you’ll receive on leave, multiplied by the months you’ll be off, plus the one-time costs of the baby, less anything you can cut from the budget. This page walks through that calculation step by step. It is part of our guide to life stages and life events.
Step 1: your monthly take-home pay now
Start from your net pay (after tax, CPP, EI and other deductions) as it appears on your pay stub, converted to a monthly figure. Reading each line is explained in how to read a pay stub.
Step 2: what you’ll receive on leave
Outside Quebec, EI pays 55% of your average weekly insurable earnings on maternity and standard parental leave, up to $729 a week in 2026, and 33% (up to $437) on extended parental leave. Because of the cap, the gap grows quickly with salary above the maximum insurable earnings of $68,900. EI is taxable, so the deposit is lower than the benefit. The parental leave calculator gives the weekly amount for your earnings, and Quebec parents use the QPIP rates instead.
Step 3: employer top-ups
If your employer tops up EI, the gap is smaller for the top-up weeks. Top-ups usually bring pay to a percentage of salary for a fixed number of weeks and may require you to return to work afterwards; check your contract or collective agreement. Split the leave into the top-up period and the EI-only period and work out each gap separately.
Step 4: multiply by the months off
Example: take-home pay of $5,000 a month and an EI deposit of $2,900 a month leave a gap of $2,100 a month. With no top-up, a 12-month leave needs $25,200 to keep spending the same. If the household can trim $650 a month while on leave, the amount to save falls to $17,400.
An extended leave
On extended parental leave the weekly rate drops to 33% and the leave lasts longer, so the monthly gap is larger and runs for more months. Running the same calculation for both options shows the cost of the extra time at home; the weeks for each option are in the EI maternity and parental benefits guide.
Step 5: add the baby’s one-time costs
Nursery furniture, a car seat and stroller, diapers, clothing and (if needed) formula add to the first year’s spending. What these typically cost is covered in the cost of having a baby in Canada. Buying used and accepting hand-me-downs lowers this part the most. Many families also keep a separate emergency buffer, sized as in how much emergency fund you need.
Step 6: count the income that starts with the baby
The Canada Child Benefit starts once you apply after the birth and is paid monthly, so it narrows the gap. How much you’d get depends on family income; see the CCB calculator. Most provinces add a child benefit of their own.
A savings timeline
Example: to reach a $20,000 goal, saving starts at $833 a month two years ahead, $1,667 a month one year ahead, or $2,222 a month from the start of a pregnancy.
A high-interest savings account or a TFSA keeps the fund accessible; options are compared in the HISA guide.
Checklist before the leave
| Task | When |
|---|---|
| Work out the monthly gap | A year or more ahead, if you can |
| Check your employer’s top-up terms | As early as possible |
| Start saving into a separate account | As soon as you know the target |
| Build or top up an emergency fund | Before the leave |
| List the baby’s one-time costs | During the pregnancy |
| Apply for EI or QPIP | When the leave starts |
Other applications due around the birth are in the first baby financial guide.
Sources
The figures and rules on this page come from these sources, last checked against them on September 28, 2026. How we check facts.
- Canada Revenue Agency: EI premium rates and maximums – Calculate payroll deductions and contributions
- Government of Canada: EI Regular Benefits - How much could you receive
- Government of Canada: EI maternity and parental benefits: How much you could receive
- Justice Laws (Canada): Employment Insurance Act