Physician Parental Leave Allowance Program

The 2023–2027 Memorandum of Agreement (MOA) between the Newfoundland and Labrador Medical Association and the Government of Newfoundland and Labrador provided additional Physician Parental Leave Allowance benefits. The maximum weekly benefit increased from $1,500 to $1,750 and the maximum benefit period increased from 17 to 26 weeks. These changes were effective September 2, 2025, the date of MOA signing, with no retroactivity. Those currently receiving benefits will have their payments automatically adjusted up until their original end date. Physician parents who continue to meet all eligibility requirements are invited to submit a second Parental Leave Allowance Application Form to be considered for the additional nine weeks of benefits, including those currently receiving benefits and want to extend them, and those who recently stopped receiving them.

Policy

Overview

The Physician Parental Leave Allowance Program provides partial income replacement for a physician parent who wants to take temporary leave from practice in the province for the birth, adoption, or obtaining custody/legal guardianship of a child. It is intended to financially assist physicians who suffer a loss of income because they provide little or no physician services during the period of leave.

Definitions

• Benefit Period The period a physician parent is in receipt of the allowance, beginning with the start date of the first income report and concluding with the end date of the last, to a maximum of 26 consecutive weeks.
• CPSNL College of Physicians and Surgeons of Newfoundland and Labrador
• CRA Canada Revenue Agency
• FPRP Family Practice Renewal Program
• GNL Government of Newfoundland and Labrador
• HCS Department of Health and Community Services
• Leave Period The period a physician parent is not practicing for parental reasons, including any period off for pregnancy reasons, to a maximum of 18 months (excluding any pregnancy medical leave).
• MCP Medical Care Plan
• MOA Memorandum of Agreement
• NLHS Newfoundland and Labrador Health Services
• NLMA Newfoundland and Labrador Medical Association

Responsibility

This program is jointly managed by the NLMA and HCS with any material changes to policy requiring joint agreement. Interpretation of policy and day-to-day administration of the program is conducted by the NLMA.

Benefit

The allowance provides up to $1,750 per week for up to 26 consecutive weeks, reduced dollar-for-dollar by other sources of income.

• Self-employed Physicians This includes physician parents on alternate payment plans, blended capitation, fee-for-service (including sessional), GFT, and locum arrangements. This group is assumed to incur continuing overhead expenses during leave; thus, they may bill up to $1,900 per week before a reduction is applied.
• Employee Physicians This includes physician parents who are salaried through NLHS. This group is assumed to access Employment Insurance (EI); thus, the maximum EI benefit automatically reduces the allowance.

Eligibility

Eligibility for the allowance requires that a physician parent meet (and continue to meet during the benefit period) specified requirements. If both parents are physicians, each may submit a separate application for the allowance.

• Applicants must confirm Newfoundland and Labrador as their primary province of residence.
• They are required to have practiced in Newfoundland and Labrador for six months prior to the date of birth, adoption, or obtaining custody/legal guardianship of a child, excluding medical residency
• Physician parents must resume employment in Newfoundland and Labrador within 18 months following the birth, adoption, or obtaining custody/legal guardianship.
• A copy of a birth or adoption certificate, or relevant documentation regarding custody/legal guardianship, must be provided.
• A valid license with CPSNL must be maintained; the Atlantic Register licensure category is not eligible.
• Membership in good standing with the NLMA; the Student, Resident, and Retired membership categories are not eligible.

If a stillbirth or newborn death occurs after 20 weeks of gestation, an allowance of up to $7,000 (one month) is available. The physician parent may also access the NLMA’s physician health support services.

Taxation

CRA considers these payments to be a “wage loss replacement plan” as discussed in Paragraph 6(1)(f) of the Income Tax Act. Under Paragraph 200(2)(f) of the Income Tax Regulations, there is no requirement to withhold income tax on a wage loss replacement plan. Thus, tax will not be deducted at the source.

As CRA considers these benefits as part of each physician’s individual membership in the NLMA, it can only be paid to an individual. Thus, the allowance cannot be paid to PMCs directly or it may not be considered a wage loss replacement plan. This could result in additional tax consequences.

Access

Physician parents may visit this page to access a dedicated program page. They can also reach the NLMA Membership department via e-mail at [email protected] or by telephone at (709) 726-7424 or (800) 563-2003. For advice specific to blended capitation, they can contact the Blended Capitation program at [email protected].

Procedure

Allowance Application

Physician parents must submit the Parental Leave Allowance Application Form for consideration. Eligibility is reviewed, and decisions are sent by e-mail.

Blended capitation physicians who are approved are required to meet with an FPRP advisor for assistance in estimating weekly income during the benefit period.

Income Reporting

Once approved and birth, adoption, or obtaining custody/legal guardianship has occurred (or pregnancy medical leave has started), the physician parent must submit the Parental Leave Allowance Report Form to declare all income earned (based on date of service) during the benefit period. Two versions of the form are available.

• Pre Version This version is submitted in advance and covers up to 26 consecutive weeks. It is intended for physician parents who expect no income during the benefit period, or those whose income can reliably be predicted, such as:
  • Self-employed physicians not earning more than the $1,900 per week exemption (based on date of service) and without other sources of income during the benefit period.
  • Employee physicians eligible for Employment Insurance (EI) benefits without other sources of income during the benefit period.
• Post Version This version is submitted at the end of each week during the benefit period. It applies to those who cannot confirm their income in advance, including:
  • Self-employed physicians who may earn above the $1,900 per week exemption (based on date of service).Blended capitation physicians.
  • Physicians with multiple sources of income.

Most reports begin with the first full week (Monday-Sunday) after birth, adoption or obtaining custody/legal guardianship to simplify processing and avoid prorating. If the physician parent is not eligible for the entire 26 weeks, the first and last weeks are prorated to maximize benefits. Reports may also be submitted in arrears.

Physician parents may also elect to use annual leave, sick leave, and other parental leave program benefits before or after this parental leave benefit period. However, this allowance will cease 18 months following the date of birth, adoption, or obtaining custody/legal guardianship regardless.

Benefit Calculation

The allowance of $1,750 per week is reduced dollar-for-dollar by some other sources of income. For self-employed physicians, the first $1,900 is exempt. For employee physicians, access to the current maximum gross Employment Insurance (EI) benefit per week is assumed, otherwise documentation must be provided.

For blended capitation physicians, actual and reasonable costs paid to a locum for patient care coverage is deducted from any reported blended capitation payments or FFS billings. If during the guaranteed income floor period, income will include any top-up payments, divided by 26 weeks.

• Reducing Income
  • Additional workload earnings
  • Blended capitation income floor top-up payments
  • Blended capitation payments
  • Clinical/administrative benefit earnings
  • Critical escort earnings
  • Employment insurance earnings
  • FFS billings
  • Honoraria earnings
  • Physician work disruption earnings
  • PMC dividends
  • Salary earnings
• Non-reducing Income
  • After hours bonus
  • Annual leave payout
  • Blended capitation stipends, grants, and incentive payments
  • Category A bonus
  • CMPA rebate
  • Group insurance benefits
  • Labrador benefits
  • Custody/legal guardianship payments
  • On-call bonus
  • Oncology case funding
  • Oncology stipend
  • Pathology stipend
  • Retention bonus
  • Parental leave program benefits
  • Progressive Family Growth Benefit and Parental Support Benefit
  • Universal Child Care Benefit (UCCB

Benefit Payment

Benefit payments are processed on a weekly basis and issued via direct deposit. If banking information is not already on file, it will be requested through the Direct Deposit Information Form. The time frame between report submission and receipt of payment varies based on the date the report is received and may be extended if reports contain errors or require additional documentation. An e-mail notification will be sent on or prior to the deposit date.

Occasionally, staff leave may impact on regular processing. During these times, advance payments will be issued for claims where the potential for benefit overpayment is low. Those who do not qualify may experience a delay of up to two weeks.

Claim Review

Three to six months after the last allowance payment, claims are checked by comparing self-reported income with third-party data from sources such as DHCS, MCP and NL Health Services. For blended capitation physicians, this may include provision of locum agreements.  

Benefit Repayment

Repayment of benefits, either in full or in part, may occur if eligibility requirements are not satisfied or if a review identifies an overpayment.

Tax Reporting

Benefit recipients receive a T4A by e-mail by the end of February for the previous tax year. The T4A will be based on the allowance processing date, and not the date to which the allowance applies. This data is also sent directly to the CRA.