Did taking Maternity/Paternity leave reduce your annual bonus?

I took 12 weeks of parental leave. When bonus season hit, HR pro-rated my bonus, cutting it by 25% because I was "out of the office," even though I hit all my annual KPIs in the 9 months I worked. Is this standard practice, or is my company punishing parents?

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Oh, and I’ll never get that time back with my kids again so I wouldn’t have changed it, but the bonus piece is not mentioned at all by our benefits team. And frankly, I doubt they even understand. When I asked about my bonus being off I had to escalate several times landing with a senior director in finance that could actually explain the benefit and the math to me. The funniest part is also during one of my paternity leaves, I got raise, but my company doesn’t adjust compensation during a leave. So during all my digging I kept showing my paystubs and a spreadsheet to ask to help with why the numbers were off. So I also discovered that when I had come back from leave they never updated my compensation to start receiving my raise. So I did get a pretty nice 1 time catch up payment. I assume most people in my company don’t take the effort to chase this information down and our company is still benefiting from those bonus and salary savings.

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Yes. That happened to me. What was explained to me is your bonus isn’t based on your actual salary, it’s how much you earned that year based on your salary. So at our company, or at least my company in NYS, my employer offsets your salary during leave to cover what the state benefits does not. It’s around $1,000 per week I think.

smart

Thank you sharing for this. At least they explained to you and it’s fairly nice to see it was used to cover benefits for you.

I've heard of that happening, and I think it could be a fairly common scenario. I remember someone said their bonus was divided up out of a pool. So by corporate logic it would be unfair to people who had been working every day if people who hadn't been there received bonuses for that time.

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Good scenario but i think they should stop make exceptions for those who mandatorily have to be on leave but still make the effort to knock off their goals.

This is legally murky and worth pushing back on hard. Pro-rating bonuses for parental leave may violate the FMLA or state-level equivalents depending on how your company treats other leaves — if a colleague on medical leave kept their full bonus, you have a case. Document everything and compare policies. Beyond the legal angle: you hit your KPIs in 9 months. That's the argument. "I delivered 100% of my goals in 75% of the time" is not a 25% bonus cut — it's an efficiency argument for a raise. Has HR actually put this policy in writing?

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