Swedish carmaker Volvo Cars has announced that it will give its 40,000 employees worldwide the right to six months of paid parental leave, regardless of gender.
According to CNBC, this new policy, which will begin from April 1, 2021, will also cover those who become parents through adoption, permanent foster care and surrogates, as well as non-birth parents who are same-sex couples.
Will cost Volvo millions of dollars
The new policy will allow employees who have been with the company for a year to receive 80 per cent of their pay during their parental leave.
These include all employees, both hourly and salaried, to use their time off during the first three years of parenting a new child.
According to Financial Times, Volvo currently offers six months of paid leave to new mothers, but follows local regulations for fathers.
While such a generous parental leave policy is common among Swedish companies, Volvo will take a step further, and introduce the policy to its global workforce, including its staff in the U.S. and China.
The company hopes this shift in policy will not only help raise the number of senior female managers, but also bolster its image among potential car buyers.
Volvo told FT that this new policy will cost the company "millions of dollars", but said that this is the "right thing to do".
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