With an eye toward boosting its attractiveness to top talent in the U.S. and China, Volvo Cars will extend its generous paid parental leave policy to its entire global work force starting April 1.
The Family Bond policy, which Volvo trialed in Europe in 2019, will give employees with at least one year of service a total of 24 weeks of leave at 80 percent of their base pay, the company said Tuesday.
The policy applies to either parent and the leave can be taken anytime within the first three years of parenthood. In addition, the person returns to his or her job after the leave period ends.
Volvo employees in the U.S. and China, where the automaker has expanded rapidly by opening vehicle production plants in the last decade, stand to significantly benefit.
In the U.S., Volvo employees were previously offered six weeks of parental leave at 100 percent of their salary. Starting next month that rises to either 19 weeks at 100 percent or 24 weeks at 80 percent of their salary.
In China, mothers have a minimum of 14 weeks of paid leave while fathers, on average, only get one week. Volvo previously offered dads in China 15 days of leave at their full salary. That number will rise by more than a factor of 11.
"For the dads in China it will be a revolution," Volvo CEO Hakan Samuelsson told Automotive News Europe.