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Volvo on the verge of giving employees 24 weeks of paid parental leave

Well, Swedish automaker Volvo Cars is planning to increase the paid parental leave for employees across the globe. It is on the verge of giving 24 weeks regardless of gender.

However, the company mentioned that the employees who work hourly or salaried and have been with the automaker for the last year are eligible for the new “Family Bond.”

It covers those who have now become parents by giving birth, adoption, permanent foster care, and surrogates. Additionally, Non-birth parents of same-sex couples are even eligible. Volvo mentioned, this program will become effective from Thursday.

However, under this program, the employees will be paid almost 80% of their base pay. Moreover, they can make use of the time off from work within the first three years of parenting a new child. Additionally, U.S. employees have now the option of 19 weeks of completely paid parental leave within the 36months of becoming a parent as per Volvo’s new update. 

The Volvo CEO Hakan Samuelsson, this new policy is meant for assisting the company in talent acquisition and retention as it is focusing on turning into an all-electric vehicle manufactured by 2030.

He mentioned to CNBC “It’s something we believe is setting a new standard in the business. We do this, not to introduce some kind of new favorable benefit to our employees, we do it more because we think it’s good for our company. We will be more attractive as an employer. There’s a competition going on for talent.”

Notably, Samuelsson mentioned the company expects that the new program to a cost of considerable sum” — likely in the “single-digit millions.” He said as long as “it gives us better, diverse management and a stronger brand, it will definitely be worth it.”

Samuelson has also mentioned that this new parental leave program created for positive output and thousands of its sales employees in Europe. He mentioned, “What we do as a company is living our values. It will be good for our reputation everywhere.”

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