DCT Family Guide

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When my husband mentioned trying parental leave during my second pregnancy, I was honestly skeptical. I spent nights researching how much we’d actually receive, whether he’d face discrimination upon returning, and where to even apply. This is everything I learned from those sleepless nights.

As of April 2026, the government raised the parental leave pay cap from $1,500 to $2,000 per month. You receive 80% of your ordinary wages. I was curious about the actual amount and when we could apply.

This post covers everything from the 2026 parental leave pay increase to application procedures and pitfalls I almost missed. I’ve compiled this based on blog reviews and official Department of Labor resources. Check out our guides on how to apply for childcare allowances and returning to work tips for more help.

What Changed Between 2025 and 2026?

Starting in January 2026, the parental leave pay cap increased from $1,500 to $2,000 per month. The structure of receiving 80% of ordinary wages remains the same, but higher earners now receive substantially more.

For example, if your monthly ordinary wage is $3,000, you should receive 80% which is $2,400. Previously, the cap limited you to $1,500. Now you can receive up to $2,000. The floor remains at $700 per month, ensuring minimum protection for lower-wage workers.

Additionally, the Department of Labor is also running a Dad Parental Leave Bonus program in 2026 to encourage parental leave. When parents take sequential leave for the same child, the second parent receives 100% of ordinary wages for the first 3 months (cap $2,500/month). My husband and I are planning to take advantage of this.

Parental Leave Pay Eligibility Requirements

To receive parental leave pay, you must be an employee enrolled in employment insurance. Whether you’re permanent or contract staff doesn’t matter—you just need 180+ days of insured coverage as of your leave start date.

Simply put, if your employer has paid employment insurance premiums for 6+ months, you usually qualify. Part-timers and freelancers with employment insurance history can also apply.

With my first child, I only took 6 months of leave before returning to work, but I could have used the remaining 6 months after having my second child. However, split usage requires employer consent, so discuss it ahead of time.

How Much Will I Actually Receive?

It’s calculated as 80% of monthly ordinary wages. If it exceeds $2,000, you get $2,000; if it’s under $700, you receive $700. For instance, if your ordinary wage is $2,500/month, you get $2,000 (80% capped). If it’s $800/month, you receive $700 (the floor) instead of $640.

Important note: 25% of your benefit is withheld and paid as a lump sum after you work 6+ months post-return. So your actual monthly payment is about 60% of ordinary wages, with the remaining 20% coming later as a lump sum.

How to Apply for Parental Leave Pay

Application is simpler than you’d think. Apply within 1 month of your leave start date through the employment insurance website or your local employment center. Once your company issues a parental leave confirmation, you just submit it and you’re done.

I did it online and it took less than 10 minutes. Go to the employment insurance website, navigate to ‘Individual Services → Parental Leave Pay Application.’ Log in with a digital certificate or online authentication, attach the PDF confirmation from your company, and you’re finished.

Your first payment usually arrives within 2 weeks of application. It’s calculated at month-end and deposited mid-following month. If there’s a delay, call the employment center to check status.

Online vs. In-Person: Which Is Faster?

I personally recommend online application. Employment centers have long wait times, and if documents are incomplete, you have to go back. Online allows applications even at 11 PM, and you get instant alerts for missing documents so you can supplement easily.

But if it’s your first time and you have lots of questions, or if calculating ordinary wages is complicated, visiting the center isn’t bad. Counselors verify everything directly, reducing error risk. I went to the center for my first child and applied online for my second.

Dad Parental Leave Bonus: More Benefits for Couples

When parents take sequential parental leave for the same child, the second parent receives an incentive. For the first 3 months, they receive 100% of ordinary wages with a cap increased to $2,500/month.

For example, if mom takes 6 months of leave first and returns to work, then dad takes 6 months, dad receives up to $2,500/month for the first 3 months (100% of ordinary wages). From month 4 onward, it reverts to standard parental leave pay (80%, cap $2,000).

“My husband took just 3 months and received $2,000/month—about the same as his salary.”

— From a parent blog review

Among dual-income couples I know, many dads take just 3 months. During that period, there’s virtually no income loss. My husband already told HR he’s taking 3 months when our second arrives. Check out our dad parental leave reviews too.