Wise Faces Staff Backlash Following Reduction in Paid Paternity Leave

Fintech firm Wise has reduced its paid paternity and secondary caregiver leave from 18 weeks to eight weeks, triggering significant internal dissent among employees. The policy change, which took effect earlier this month, places the company’s benefits package closer to industry standards while drawing sharp criticism from staff who claim the move prioritizes financial performance over employee well-being.

Why Employees Are Criticizing the Policy Change

Internal communications viewed by City A.M. reveal that Wise staff expressed frustration regarding the timing and nature of the benefit reduction. Employees utilized internal messaging channels to characterize the decision as a retreat from the company’s previous market-leading position. One staff member stated that the firm should be setting the standard for the market rather than reducing its own offerings.

The backlash is intensified by the contrast between this policy shift and the actions of company leadership. In 2023, Wise co-founder and CEO Kristo Käärmann took a three-month sabbatical to spend time with his newborn child. Employees have pointed to this as a source of frustration, noting that the current workforce no longer has access to the same level of leave that the firm’s chief executive utilized.

How the New Policy Compares to UK Statutory Requirements

While the reduction from 18 weeks to eight weeks represents a significant cut, the new benefit remains above the UK government’s statutory minimum. According to official UK government guidelines, statutory paternity leave is capped at two weeks. This leave must be taken in blocks of one week and completed within 52 weeks of the child’s birth.

A source close to Wise noted that the company has also expanded eligibility for the leave. Employees are now eligible to receive these benefits after six months of service, a reduction from the previous requirement of one year of tenure.

Broader Challenges Facing Wise

The internal dispute over parental leave coincides with external legal challenges for the London-based fintech. Prosecutors in Belgium have launched an investigation into Wise regarding allegations that its platform was used for criminal activities. Reports indicate the investigation involves transactions totaling approximately €500m (£432m).

The company’s market performance has faced pressure throughout 2026. As of mid-June, Wise shares have declined nearly seven percent year-to-date, trading at approximately 812.00. Investors are monitoring how the firm balances internal cultural friction with ongoing regulatory scrutiny in European markets.

Key Details of the Leave Policy Adjustment

• Previous Benefit: 18 weeks of paid leave for secondary caregivers.
• New Benefit: 8 weeks of paid leave for secondary caregivers.
• Eligibility Change: Reduced from 12 months of service to 6 months.
• Regulatory Baseline: 2 weeks of statutory leave mandated by UK law.

The company has not issued a public statement regarding the internal backlash, but internal sources suggest management is currently working to address employee concerns. As the firm navigates both the staff grievances and the Belgian prosecutor’s probe, the focus remains on maintaining operational stability in a competitive fintech landscape.