Navigating paternity leave finances in India
What's the story
Paternity leave is a precious opportunity for new fathers to bond with their newborns, but it can also be a time of financial stress.
In India, where paternity leave policies are not standardized and depend on the goodwill of employers, preparing your finances for this period becomes even more important.
This article provides practical tips on how to manage your money effectively while on paternity leave.
Tip 1
Plan ahead for leave duration
Before the baby comes, know your employer's paternity leave policy.
Some companies provide paid leave, others do not.
If you have less than two weeks of paid leave or only unpaid leave, start saving early.
Try to have at least a month's salary saved to cover expenses during your leave.
Tip 2
Budget for increased expenses
Babies come with new price tags: diapers, formula (if not exclusively breastfeeding), and doctor's appointments can quickly add up.
Make sure you have a budget that covers these new costs and some cushion for the things you can't plan for.
Adjusting your family budget before the baby comes will save you financial headaches during your paternity leave.
Tip 3
Explore government benefits
India does not offer a nationwide paternity benefit policy. However, certain government employees can access 15 days of paid paternity leave.
Investigate any government benefits or schemes you may qualify for as a new parent.
Even if no direct benefits exist for paternity leave, other child-related benefits may assist in managing expenses during this time.
Tip 4
Consider short-term investments
If you are planning to start a family soon, invest some of your money in short-term instruments that can be easily liquidated by the time you go on your maternity/paternity leave.
Fixed deposits or liquid mutual funds would give you better returns than a savings account and provide you with that extra buffer when you need it the most.
Tip 5
Seek flexible work arrangements
Before you go on your paternity leave, discuss and secure a flexible work arrangement (work from home or part-time) with your employer.
This way, you can earn some income while spending that much-needed time with your newborn.
Be open about your needs and how you intend to handle work responsibilities during this time.