Maternity, paternity and parental leave – how does Switzerland compare on the global stage?

Lydia Walter Consultant, People and Organisation, PwC Switzerland 30 Sep 2020

On 27 September 2020, the Swiss electorate voted in favour of a two-week paternity leave period. This referendum was a less ambitious version of the initial proposal and the result of three years of political negotiation. How does this result position Switzerland in comparison to other countries? National legislators vary greatly in how they address this topic. With that in mind, we were curious to compare models of parental leave across countries.

As a result, we created the Parental Leave Compass. Besides providing a detailed perspective on leave regulations globally, we grouped countries with similar leave systems to allow for a better understanding of this complex topic. In this article, we put the Swiss case into perspective and allow for comparison with other countries as well as best-practices from an employer perspective.

Maternity leave – supporting equal participation in the workforce

Women’s economic empowerment is a key pillar of economic growth and a driver for innovation within firms and organisations. Unequal pay, a disproportionate burden of unpaid care work and lack of paid maternity leave for women can have detrimental effects on the economic participation of women. The good news is that global data show progress on the provision of maternity leave. The share of countries guaranteeing paid maternity leave is now at 96%, albeit with differences in length of leave and levels of pay during leave. Undoubtedly, the provision of paid leave for mothers is vital for a child’s long-term health and well-being. However, "excessively" long leave and part-time employment can decrease women’s participation in the labour market. Indeed, policies that redistribute the responsibility of unpaid care work among different care-givers can prove beneficial both at the level of the household and for the wider economy. In some cases, such arrangements can provide both parents with time to bond with their infant, while also allowing for a more gender diverse workforce.

Transferrable paid leave – supporting parents’ childcare choices

Global data reflects a steady rise in the number of countries providing paid leave for the second parent, mostly specified as the father. Between 1995 and 2015, the share of countries guaranteeing paid paternity leave more than doubled and rose to 52%. In most European countries, as well as Canada, Chile and Uruguay, paid paternity leave is substantially shorter than maternity leave. In an increasing number of countries, however, part of the paid leave may be transferred from the mother to the father on a voluntary basis. For example, fathers in Uruguay may take up to 13 paid days, whereas mothers are entitled to 14 weeks. During the first six months, one parent is entitled to work part-time and receive compensation for it. In the United Kingdom, mothers are entitled to 39 weeks, and fathers to 2 weeks of paid leave. Subsequently, parents may choose to share 37 weeks of paid leave.

Yet, even with leave policies for both parents in place, mothers take most of the shared leave entitlement. The reasons for this phenomenon are diverse. Financial considerations often play an important role, given the gendered division in pay. Moreover, traditional ideas of women as caregivers and men as breadwinners persist. Regardless of region, and even in countries where women have achieved greater economic equality, these gendered expectations still seem to play an important role. That is why some legislations are now reserving non-transferable periods of paid leave exclusively for fathers.

Personal leave quotas – encouraging a more even division of childcare between genders

Scandinavian countries assign a substantial paid leave quota to each parent. In Sweden, for example, parents are allocated 300 days of paid leave, of which 90 days may not be transferred to the other parent. In Norway, out of the 49 weeks of paid leave, 15 weeks constitute the maternal quota, 15 weeks are allocated to the other parent and the remaining time can be shared between the parents. In Iceland, both parents are entitled to three months' leave; beyond that, they are free to divide another three months according to their preferences. In all these systems, a father’s decision to take leave does not affect their partner’s entitlement.

Because the paid leave allocated to the father cannot be transferred, this system creates an incentive to make use of leave entitlements. However, the mere existence of non-transferrable leave is not enough to make equal childcare a reality. While Japan has one of the most generous leave policies for fathers – with up to 52 non-transferable weeks – only 6% of Japanese men make use of it. Thus regulation alone does not deliver the intended outcome, and financial considerations are not the main motivating factors in the allocation of caring duties. Important reasons are limited workplace support for fathers and the persistent stereotyping of men as the primary breadwinners.

Conclusion

Gendered differences in employment and wages persist in most countries and these gaps are closely linked to childbirth, a phenomenon referred to as the "child penalty". This career interruption often reflects the personal choice of women to spend more time with their young children. However, part of the interruption is due to a lack of legal regulation and a corporate environment that makes it difficult for parents to balance care, work and a professional career.

With that in mind, employers try to attract the brightest employees with leave benefits that go beyond the legal minimum. Some even go a step further, applying reason-blind paid leave options for all employees. This eliminates the bureaucratic hurdles associated with patchwork families, same-sex couples or caring for elderly relatives and friends. Lastly, reason-blind leave policies signal to employees that they are trusted, which is a key to unlocking many of the benefits of inclusion in the workplace, including greater productivity and engagement.

Contact us

Lydia Walter

Lydia Walter

Consultant, People and Organisation, PwC Switzerland

Tel: +41 58 792 18 60

Johannes (Joop) Smits

Johannes (Joop) Smits

Partner, People and Organisation, PwC Switzerland

Tel: +41 58 792 91 64