Despite Reports of Cuts, Paid Parental Leave Shot Up in Past Year

Forget the headlines about parental leave’s demise. Parental leave benefits have actually jumped up in the past year, according to new SHRM data.

The number of employers offering paid leave for new parents increased substantially in the past year, according to the 2026 SHRM Employee Benefits Survey, released this week. Forty-six percent of employers now offer paid parental leave, up seven percentage points from 2025. Paid maternity leave (offered by 44% of employers) increased by six percentage points since last year, paid paternity leave (34%) increased by three percentage points, and paid prenatal leave beyond legal requirements (18%) increased by eight percentage points, according to SHRM.

SHRM’s Benefits Survey polled 5,472 organizations.

SHRM’s data follows recent headlines about companies cutting parental leave. Tech communications company Zoom is trimming parental leave from 22-24 weeks to 18 weeks, for instance, while consulting firm Deloitte reportedly will reduce or cut parental leave, as well as a pension plan and IVF funding, beginning in 2027. The moves come as benefits have been under pressure given economic uncertainty; some employers have had to reevaluate programs as they look to control costs. 

Despite headlines suggesting some firms are reducing paid parental leave policies — among other benefits — benefits experts said the news doesn’t mean that benefits for parents are on the chopping block across the board. In fact, more employers are making sure they are offering some level of paid parental leave, although the amount varies widely among employers and industries.

“I think headlines like those are more a bit of clickbait,” said Nader Salah, executive director of total rewards at Detroit-based financial services firm Ally Financial. Seeing that parental leave has increased “is actually what I would expect.”

Policy: Paid Parental Leave Policy Template

Becoming Table Stakes 

The increase in employers offering paid parental leave may be the result of new state laws that are both mandating employer action and spurring employers to act on their own. Currently, 14 states and the District of Columbia have enacted mandatory paid family leave systems. An additional nine states have voluntary systems that provide paid family leave through private insurance.

Another major factor in the number of employers offering paid parental leave is the fact that paid time off after welcoming a child is turning into a standard benefit like healthcare and retirement.

“It’s to a point where a certain level of leave is table stakes,” Salah said. “Over the last few years, the relationship between the employer and the employee — for those that do it well — has changed. There is more two-way communication, so I think benefits like [paid parental leave] recognize that it’s a two-way communication. Employees want this. Adding benefits like this makes your employees feel like you are really trying to meet them where they are in moments in their life where it matters.”

Ally Financial, which has roughly 10,000 U.S. workers, offers workers up to 14 weeks of paid parental leave. 

Nell Hardie, head of people at Heidi, a Sydney, Australia-based AI healthcare company with workers across the globe, including in the U.S., said that ensuring employees feel supported, as well as rewarding employees for a hardworking culture, was behind the company’s recent benefits overhaul, which included a new competitive paid parental leave policy, which they announced this month. 

Heidi now offers 26 weeks of paid parental leave for primary caregivers and 18 weeks for secondary caregivers at full salary, up from the company’s already generous gender-neutral policy of 18 weeks for both parents. Some of its other changes include four weeks of paid compassionate leave specifically for miscarriage.

“There needs to be an equal exchange of energy, so what they’re giving to us, showing up on the hard days … we want to show up for them, too, in all seasons of our employees’ lives, including the journey of starting a family,” Hardie said. “That just feels right to us as a business.”

A Boon for Employers, Too 

Other reports are finding similar data on parental leave, including The Best Place for Working Parents, a Fort Worth, Texas-based organization that recognizes employers that support working parents, which found that most employers are still prioritizing family benefits, including leave, child care assistance, and nursing benefits. 

Article: Family Benefits Hold Steady Despite Economic Volatility

Sara Redington, co-founder of Best Place for Working Parents, called the increase in family benefits “encouraging,” saying policies to support working parents are not only a way to support employees and their needs, but also serve as a business advantage.

“To be competitive, to be at the top for talent, you have to be adaptive and be thinking about these policies that not only are proven to help working parents and caregivers, but also will have a benefit to your bottom line,” she said. 

Salah agreed that benefits like paid parental leave remain a competitive edge for employers.

“Our purpose-driven culture is our key differentiator, and it includes benefits, and it’s really what positions us as an employer of choice,” he said. “In order for us to maintain that [label as an employer of choice], you need to invest in your people.”