Fed's and Quebec parental leave insurance.

MONTREAL -- The federal and Quebec governments signed an agreement that will enable the province to have its own its own parental leave insurance. The Quebec made program will be more generous than the federal maternity/parental leave and employment insurance benefits combined.

The Quebec parental leave program eliminates the two-week waiting period and extends parental-leave benefits to part-time workers and the self-employed. Birth mothers will have two options: a 40-week leave at 75 percent of their salary or a 55-week leave at 70 percent of their salary for the first 25 weeks and 55 percent for the rest. The plan would cover 55 percent of wages up to a maximum of $52,000, instead of the current $39,000 under the present federal maternity-parental leave plan. Fathers will be entitled to five weeks of paid parental leave.

EI premium rates in Quebec would be adjusted to accommodate the new system. The federal government will turn over $750 million annually to Quebec to run the program. The money will come in the form of reduced Employment Insurance premiums for Quebec to allow the provincial government to collect premiums for its own leave program. The plan will be administered by the Ministere de l'Emploi et de la Solidarite sociale; as of January 1, 2006, Revenu Quebec will be responsible for collecting the contribution to the Quebec parental insurance plan. This contribution will apply to employers, employees and self-employed persons.

Employers will be required to pay an employer contribution to the Quebec parental insurance plan and collect employee contributions through source deductions. Employees will pay their contribution to the Quebec parental insurance plan through source deductions. Self-employed persons will pay a contribution to the Quebec parental insurance plan based on net business income. The contribution is to be paid when they file their income tax return or make installments payments, where applicable.

The federal government stated that similar deals are open to any other interested provinces. No other province has so far indicated it wants control over its parental leaves.