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ADULT GAP YEAR SERIES: Quit Work for a Year Without Quitting (The Deferred Salary Plan)

ADULT GAP YEAR SERIES: Quit Work for a Year Without Quitting (The Deferred Salary Plan)

By Michelle Dittmer

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Michelle spoke with John Cuddie, a retired HR professional with deep experience in school boards, about deferred salary leave plans — a structured way to save for a year off work. John shared how he used the program twice, what he did during his leaves, and why intentional pauses can be personally and professionally valuable. About John

  • Spent 30+ years in HR with three school boards
  • Later worked as an employment advisor helping new immigrants and youth
  • Approves deferred salary leave plans as part of his HR background
  • Took two deferred salary leaves himself

What Is a Deferred Salary Leave?

  • A leave of absence funded by saving part of your salary in advance
  • Common structure: “four over five”
    • Work 4 years at 80% pay
    • 20% goes into a trust account
    • Take the 5th year off using those savings
  • Often includes pension/benefit considerations and a contractual return-to-work agreement

What John Did on His Leaves First Leave

  • Home projects: painting, purging, tidying
  • Family travel to India and Dubai
  • Trips with kids to Broadway/New York and a ski holiday

Second Leave

  • More household and personal tasks
  • Significant time supporting a close friend going through cancer treatment
  • Some travel as well

Main Takeaways

  • A year off can be invigorating
  • It can also be humbling — work continues without you
  • Time away helps people see they are not their job
  • It creates balance and makes room for other forms of contribution

What Holds People Back

  • Financial concerns about living on reduced salary
  • Uncertainty about what the future may hold over a 4–5 year planning period
  • Family changes, life changes, and possible cancellation of plans

Planning Considerations

  • Budget carefully
  • Think through staffing and who will cover your role
  • Consider family and partner dynamics
  • Balance practical tasks with rest, fun, travel, and connection
  • Use the time to invest in what matters most

Practical Advice/Next Steps for you

  • Start by talking to your employer or boss
  • Ask your payroll department about the details
  • Review CRA guidance on tax implications
  • Be ready to discuss staffing and return-to-work planning

Connect With The Canadian Gap Year Association  

 

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