Microsoft announces new worker benefits a day after Netflix unveiled its own generous policy

Microsoft says it will offer more paid leave to new parents and increase other benefits for U.S. employees, a day after Netflix announced generous new-parent benefits for its workers.

Under its new policy, Microsoft Corp. will increase total paid leave for new mothers to 20 weeks, from a current 12 weeks paid and eight weeks of unpaid leave. New fathers will get 12 paid weeks, instead of four paid and eight unpaid. Microsoft is also increasing its contribution to employees' 401k plans.

The move follows Netflix's offer of up to a year of paid parental leave. Many tech companies offer generous benefits as they compete to attract talented engineers and other workers.

Netflix has about 2,000 workers, while about half of Microsoft's 110,000 workers are based in the United States.