Maternity Leave - Finances

With Elias I took 12 weeks of maternity leave. With Zoe I took 8 weeks. My decision to go back early was mostly money-driven: I wasn't making money by staying home and we needed to buy a new car to fit our growing family.

The federal government guarantees most mothers (and fathers) will not lose his/her job when taking up to 12 weeks of leave following the birth (or adoption) of their baby under the Family and Medical Leave Act (FMLA). However, this time is largely unpaid at most companies, mine included.

Many companies, like mine, that do not offer pay for maternity leave have short term disability insurance policies. These policies are paid for by the employer and will pay a qualifying employee a short-term disability benefit based on the disability and the company's percentage pay policy. A vaginal delivery counts as a short-term disability that receives a benefit of 40% pay for 6 weeks. I am not sure what the benefit is for a cesarean delivery. Thus, the first 6 weeks of maternity leave you receive partial pay and the remaining 6 weeks, if you decide to take more time, is unpaid.

There are some nuances to this benefit that likely varies from company to company and policy to policy. For example you need to claim a waiting week before receiving the short-term disability payout. This waiting week is the first 5 days after your delivery. During this time you are not eligible for the benefit and you must take vacation time if you want to get paid. Secondly, many companies force the employee to use his or her vacation time before he/she can go on leave without pay. Thirdly, some short-term disability policies deduct money from your benefit if you have vacation time leftover after the waiting period.

All of this factored into how I took my leave. I decided to use all of my vacation time except for 5 days prior to my delivery. I took my last 5 vacation days immediately after delivery, then claimed the short-term disability benefit, and then went on leave without pay.

To manage, my husband and I cut down on our savings and IRA contributions, mortgage over payments, and overall expenses. Money is tight with an upcoming new car purchase, and two daycare payments starting in late April.