Before I begin, let me say that I did not always believe that expanded benefits would pay off, or were even possible for most companies. When companies talk about employee benefits, the conversation often turns to cost. Paid vacation, sick leave, parental leave—these all sound like expenses. But here’s the question: are they really costs, or are they investments? Let’s look at three countries—Canada, the United States, and Sweden—and see how their approaches to time off stack up. Spoiler alert: the differences are dramatic.
Vacation Allowance
Let’s start with vacation. In Canada, employees typically receive two weeks of paid vacation after one year, increasing to three weeks after five years. Add about nine public holidays, and you’re looking at roughly 19 paid days off per year for most workers.
In Sweden, the story is very different. Employees are entitled to 25 paid vacation days, plus about nine public holidays, for a total of 34 paid days off annually. And here’s an important detail: Swedish law guarantees employees the right to take four consecutive weeks of vacation during the summer months (June to August). This “main vacation” period ensures workers get a meaningful break, not just scattered days off.
Compare that to the United States, where there is no federal requirement for paid vacation. None. Employers decide what to offer, and while many provide some paid time off, it’s voluntary. On average, American workers receive about 10 paid vacation days, plus public holidays, if they’re lucky.
Sick Leave
In Sweden, employees receive paid sick leave starting from day one, with costs shared between the employer and the national insurance system. In Canada, some industries must provide 10 paid sick days, but most employers rely on provincial rules—British Columbia offers five paid days, Quebec offers two, and many provinces offer none.
In the U.S.? Again, there’s no federal mandate for paid sick leave. Some states require it—California, for example, mandates three paid sick days per year—but coverage is patchy and inconsistent.
Maternity and Parental Leave
Here’s where the gap really widens. Sweden offers 480 days of parental leave, with 390 days paid at about 80% of salary. Parents can share this time, and the system is designed to support families for well over a year.
Canada provides up to 50 weeks of parental leave, with 17 weeks of maternity leave paid at 55% of salary under Employment Insurance. It’s not perfect, but it’s a structured system that gives families meaningful time.
The U.S.? The Family and Medical Leave Act guarantees 12 weeks of unpaid leave for eligible employees. That’s it. No pay, no national program. Some employers voluntarily offer paid leave, but it’s far from universal.
“But That’s Socialism…”
Now, some readers might say, “Sure, Sweden and Canada can offer these benefits—they’re more socialist.” And yes, these countries have stronger social safety nets than the U.S. But here’s the thing: it works. These policies keep people healthier, happier, and more productive. They reduce burnout, improve retention, and create a workforce that feels valued.
Whether you call it socialism or simply smart business, the result is the same: employees who are supported tend to give more back. And that’s something every company—regardless of ideology—should care about.
So, Does It Cost Money?
On paper, yes—these benefits cost money. But here’s the bigger picture: countries that invest in employee well-being often see higher productivity, lower turnover, and better morale. Sweden consistently ranks among the happiest and most productive nations in the world. Canada sits somewhere in the middle. The U.S., with its minimal statutory benefits, struggles with burnout and retention.
The question isn’t whether benefits cost money. It’s whether the cost of not offering them—lost talent, disengagement, mistakes—ends up being higher.
Final Thoughts
If you’re an employer, think about what you’re really buying when you offer time off. You’re buying loyalty. You’re buying focus. You’re buying a workforce that shows up ready to perform. And if you’re an employee, ask yourself: what’s the value of working for a company that sees you as a person, not just a producer?
I’d love to hear your thoughts. Do generous leave policies pay for themselves? Or are they a luxury companies can’t afford? Drop me a line—I’m always interested in how we balance cost and care in this industry.