How to Calculate Maternity Benefits

Planning ahead for maternity benefits ensures proper coverage.

Maternity benefits include the amount of time available for leave after birth or adoption, the amount of salary available while on leave, and the actual health and welfare benefits available for that time period. Actual benefits differ by company or organization, and the benefits provided by law can differ by locality.

Things You'll Need

• Company policies
• Salary and benefit data
• Locality-specific regulations

Instructions

1. Familiarize yourself with the Department of Labor standards for the Family and Medical Leave Act. Assess whether the standards cover your situation: working for a covered employer, completing 1,250 hours of work in the 12 months prior to leave, working for a company with 50 or more employees within 75 miles of your location and working for 12 months for your employer.

2. Investigate locality-specific maternity leave provisions that may modify the provisions of the Family and Medical Leave Act. Additional information can be found in the Resources below.

3. Evaluate internal company policies for the availability of leave for medical, family or maternity-specific provisions. Some organizations require that all leave be taken from the time provided by the Family and Medical Leave Act, while others provide additional time away from work or flexible work arrangements.

4. Examine internal company policies as well as locality-specific statutes for the availability of salary benefits during maternity leave. Calculate the amount of vacation, personal and sick time you have available or that you could potentially borrow from the following calendar year, as that can ensure pay for a portion of your leave.

5. Participate in company-sponsored or individually purchased short-term disability insurance. Short-term disability insurance replaces a portion of your income while on a qualified medical leave, typically totaling 40 percent to 80 percent of your normal salary. Short-term disability insurance benefits may require participation prior to the beginning of your pregnancy in order to to provide coverage.

6. Evaluate your health and welfare insurance needs during your pregnancy and following birth. Investigate available coverage through your employer or locality. Some employers and localities provide coverage at no cost throughout the duration of pregnancy and maternity leave, while others require the continued payment of premiums. You may be able to drop optional benefits while on leave and only continue those fundamental to your health and welfare needs.

Tips & Warnings

• Your 12 months of work with your employer do not have to be performed consecutively to qualify for FMLA leave if other requirements are met.

• Begin preparing for your pregnancy and post-birth needs as early as possible to plan for adequate leave, salary and health and welfare benefits.

• This article is intended as an overview and is not meant to provide specific advice to all companies, all localities or all individuals.

References

• Family and Medical Leave Act

Resources

• State Pregnancy, Childbirth and Adoption Leave Statutes