For most young parents in the Netherlands, welcoming a baby is a moment of great happiness. But along with the joy often come financial worries. More and more families say they struggle to make ends meet while taking parental leave. Although the Dutch system protects parents’ right to time off, the drop in income can be difficult to cope with.
How parental leave works
In the Netherlands, new parents are allowed to take time off work to look after their child. This right is protected by law. But taking leave does not always mean full pay.
Immediately before and after the birth, mothers are entitled to 16 weeks of fully paid maternity leave; the last six of these can be taken at a later date, within six months after the birth. For self-employed mothers, the government offers a specific subsidy. Fathers get one week fully paid and five weeks paid at 70% of their salary. These five weeks must be taken within six months. They are paid by the government, not by the employer.
In addition, each parent can take up to 26 weeks of parental leave for each child. Only nine of these weeks are paid, and they must be taken in the baby’s first year. During this time, parents receive about 70% of their normal income, up to a legal limit. The remaining 17 weeks are unpaid, unless an employer chooses to pay extra. For many young families, this leads to a sudden drop in income.
Why money becomes a problem
A 30% income loss may sound manageable on paper, but in real life it often is not. Housing costs, groceries, energy bills and childcare for older children continue as normal. At the same time, families face new expenses like baby supplies, medical costs and childcare for the new baby.
Studies show that young families are already financially vulnerable, even before having children. Almost half of Dutch households are financially vulnerable or financially unhealthy, with younger households especially at risk.
Who feels it the most
Not all families are affected equally. Parents with lower or single incomes, on temporary contracts or high rent or mortgages are much more likely to feel financial stress.
Data from various research organisations show that higher‑paid parents use paid parental leave more often. Families with less income often skip leave, or return to work earlier than planned, simply because they cannot afford the pay cut. This creates inequality at the very start of a child’s life.
The human side of the numbers
Behind the statistics are families making difficult choices. Some parents use savings meant for the future. Others take on debt or rely on family support. Many feel stressed or guilty: wanting to care for their baby, but worrying about bills at the same time.
Is the system working?
Paid parental leave is meant to give parents time with their child and help them balance work and family life. Since the paid parental leave scheme started in 2022, more parents are using it, and more fathers are taking time off after the birth of their child.
However, many experts say the system still has problems. For many families, receiving only 70% of their income is not enough, especially with today’s high living costs.
There are ongoing discussions about possible improvements, such as:
- better financial support for low‑income parents
- clearer information about available benefits
- smoother income changes during important life events
Looking ahead
Parental leave is meant to reduce stress, not add to it. Yet for many young parents, taking leave can mean financial insecurity. As more families speak openly about their experiences, the issue is gaining more political attention. The challenge now is to make sure that caring for a newborn does not come at the cost of financial stability, especially for those who need support the most.
Written by Parul Sachdeva