6/03/2015

Income on Leave

In the last few months I've gone through countless iterations of our budgets for when I'm on maternity leave, for the new house, for carrying both mortgages for short time until our Alberta house sells....sooooo many budgets.

Before I delve into the current one, I thought I would share our income situation.

With Jordan's new job in BC, he got a bit of a raise.  Of course income taxes, benefit deductions and the like are all different too.  This has resulted in a larger than expected change to our net take home for him (woohoo) - a little more than $1,600/bi-weekly.

I'll be receiving my regular salary until I go on maternity leave in October - so we're banking a lot of that between now and then - but I will have benefits while on leave.

I plan on taking the full leave that I'm eligible for, which in Canada is 52 weeks.  For 50 of those weeks, I will receive Employment Insurance.

In Canada, Employment Insurance benefits is 55% of your average insurable weekly insurance, up to a maximum.  In 2015 that maximum is $49,500.  So, because my annual salary is larger than the maximum, and I have contributed fully to EI, I will receive the maximum benefit amount of $524/week.  Of course, there are income tax deductions on this.  I've used the Canada Revenue Agency's Salary Calculator to determine that my benefit will work out to be about $440/week or $880 bi-weekly.

I should also mention that my employer provides a generous top up.  They will top up, or supplement, my EI payment to 70% of my salary for 15 weeks.  This is an awesome benefit to help you transition down to EI benefits.

I'll also be eligible to apply for the Canada Child Benefits which include:

  • Canada Child Tax Benefit (CCTB)\
  • Universal Child Care Benefit (UCCB)
  • GST/HST credit, and
  • Any other applicable provincial programs.
Phew!  I think I'll save writing about those for another day.



Reactions:

2 comments:

  1. Hey Jessie, Just wanted to let you know that they take less tax off than you calculated I am on mat leave at the moment and get $1002 biweekly so you can see almost no taxes are taken off. So to increase taxes you need to call them or just put money aside to cover the tax bill :-) We are freaking lucky to get paid for so long. Congrats on all the wonderful things going on.

    ReplyDelete
    Replies
    1. Oh wow! Thanks for the tip about your mat leave benefits! I wonder why they don't take more off.

      Delete

Hi! Thank you for stopping by and leaving a message.

Followers

Links ♥