Paternity Pay Rules by Country - How Paternity Pay Works

Complete guide to paternity pay rules worldwide. Learn how paternity pay is calculated, pay rates, caps, and eligibility requirements in different countries.

How Paternity Pay is Calculated

Paternity pay calculation varies by country. Some countries pay a percentage of your average weekly earnings (e.g., 90% in UK, 55% in Canada, 100% in France and Spain), while others use fixed weekly rates (e.g., £172.48/week in UK, $882.75/fortnight in Australia). The calculation method depends on your country's specific rules.

Percentage-Based Pay Systems

Many countries calculate paternity pay as a percentage of your average weekly earnings. Common percentages include: 90% (UK), 100% (France, Spain), 80% (Ireland), 55% (Canada). The percentage is typically applied to your average earnings over a specific period before your leave starts.

Fixed Rate Pay Systems

Some countries use fixed weekly or fortnightly rates. Examples include: UK (£172.48/week or 90% if lower), Australia ($882.75/fortnight). These fixed rates often apply when your percentage-based calculation would be lower, ensuring a minimum payment level.

Maximum Pay Caps

Most countries cap paternity pay at a maximum weekly amount. Examples include: Canada ($650 CAD/week), UK (uses lower of percentage or £172.48/week), Ireland (€262/week or 80% if lower). These caps ensure the system remains sustainable.

Eligibility Requirements

Eligibility for paternity pay typically requires: employment with the same employer for a minimum period (e.g., 26 weeks in UK, 600 hours in Canada), meeting minimum earnings thresholds (e.g., £120/week in UK), and being employed in the qualifying week. Requirements vary by country.

Taxation of Paternity Pay

Paternity pay is typically subject to income tax and national insurance/social security contributions, just like regular salary. The amount shown in calculators is usually before tax deductions. Some countries may have specific tax treatments - check with your tax authority.

Frequently Asked Questions