Paid Parental Leave scheme for employers

Under the Paid Parental Leave scheme, eligible working parents can get government-funded pay (up to 18 weeks Parental Leave Pay or two weeks Dad and Partner Pay) when they take time off work to care for a new child. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.

Parental Leave Pay

Parental Leave Pay is paid to the child’s primary carer and eligible parents may get up to 18 weeks pay at the rate of the National Minimum Wage. They must be on paid or unpaid leave and not working from the time they become their child’s primary carer until the end of their Paid Parental Leave period.

In most cases, employers provide Parental Leave Pay to their eligible employees. The government provides the necessary Paid Parental Leave funds to employers first.

As an employer, you must provide Parental Leave Pay to an eligible employee who:

• has a newborn or recently adopted child
• has worked for you for at least 12 months before the expected date of birth or adoption
• will be your employee until at least the end of their Paid Parental Leave period
• is Australian-based, and
• is expected to receive at least eight weeks of Parental Leave Pay.

Your business must have an Australian Business Number to participate in the scheme.

If your employee does not meet the above criteria, you are not required to provide Parental Leave Pay. However, if you both agree, you can still choose to provide it to your employee if they are eligible. You need to register for Centrelink Business Online Services and then opt-in to provide Parental Leave Pay before your employee lodges their claim for the scheme.

We will contact you if you are required to provide Parental Leave Pay to an employee and will provide the necessary Paid Parental Leave funds to you. We will provide Parental Leave Pay directly to an eligible parent who does not receive it from their employer.

Dad and Partner Pay

Dad and Partner Pay is for eligible working dads or partners (including adopting parents and same-sex couples) and they may get up to two weeks pay at the rate of the National Minimum Wage. They must not be working during this time or must be on unpaid leave.

Employers do not play a role in providing Dad and Partner Pay. We always pay your employees directly. It’s still important to be aware of Dad and Partner Pay because your employee may approach you about taking unpaid leave so that they can receive Dad and Partner Pay.

Why the scheme was introduced

The Paid Parental Leave scheme is designed to:

• signal that taking time out of the paid workforce to care for a child is part of the usual course of working life for both parents
• promote equity between men and women and balance between work and family life.

The scheme is also designed to help employers:

• retain valuable and skilled staff by encouraging them to stay connected with the workforce when they become parents
• enhance family friendly workplace conditions without having to fund Parental Leave Pay themselves
• in the long-term through increased workforce participation of parents.

The financial support provided by the scheme complements parents’ existing entitlements to paid and unpaid leave in connection with the birth or adoption of a child.