Sharing care is one thing. Sharing its cost is another. If Blog 2 examined how caregiving responsibilities might be more equitably distributed between women and men, this instalment turns to a practical question: when leave is extended — or formalised across the labour market — who absorbs the financial burden?
While public servants currently receive five working days of paternity leave, there is no universal statutory entitlement for private sector workers. The ongoing review of the Labour Bill seeks to formalise paternity leave nationwide and extend maternity leave beyond the current 12 weeks.
These proposals bring financing to the forefront. Discussions have focused, understandably, on time — maternal recovery, exclusive breastfeeding, father involvement. But time away from work carries economic consequences. And someone pays.
At the April 2024 inception meeting, employer representatives raised a concern that remains relevant today: if extended leave is financed solely by individual firms — particularly small and medium enterprises — does this create disincentives to hire or promote women of reproductive age?
The concern was not about whether care matters. It was about sustainability. If one employer bears the full cost of paid leave while managing workflow disruptions, the risk is not only financial strain — it is labour market distortion. In such a system, women of reproductive age may be perceived, however unfairly, as higher-cost hires.
That is why another perspective raised during the convenings pointed toward pooled financing mechanisms — systems where maternity and paternity protections are supported collectively rather than absorbed by individual employers.
This shifts the frame. The sharing of cost is not simply about fairness within households. It is about economic design.
Should maternity and paternity leave be treated as:
- A private employer obligation?
- A shared social insurance responsibility?
- A hybrid model?
These financing questions are now part of the ongoing review of the Labour Bill, as the Ministry of Employment and Labour Relations engages stakeholders on the “who pays” principle.
Extending leave without resolving financing risks creating tension between social protection goals and labour market realities. Recognition affirms the value of care, but the design of financing systems determines whether reform is durable.
Yet another challenge remains. Even if the cost of leave is shared between employers and the state, who ultimately benefits from these protections — and who remains excluded?
In the next blog, we widen the lens further by turning to the question of informal sector inclusion.
Follow the conversation as it unfolds.
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