How your Parental Leave Pay will be paid

Your Parental Leave Pay will be paid to you by your employer or us, depending on your circumstances.

Payment by your employer

Your employer will provide your payment in your usual pay cycle if you:

  • have worked for them for 12 months or more before the expected date of birth or adoption - for Australian Public Service (APS) employees, all APS employment is included in the employment period
  • will be their employee until at least the end of your Paid Parental Leave period
  • are an Australian-based employee, and
  • expect to receive at least 8 weeks of Parental Leave Pay

If you don’t meet these criteria, your employer won’t be required to provide your payment. However, they can still choose to provide it to you if you both agree for this to happen. For it to happen, your employer will need to register with us and opt in to provide Parental Leave Pay before you submit your claim.

If your employer is providing your Parental Leave Pay:

  • they’ll provide payment in your usual pay cycle
  • they need to withhold Pay As You Go tax (PAYG) at the usual rate
  • they can deduct child support from your Parental Leave Pay, if required to do so
  • they aren’t required to make additional superannuation contributions, but may do so if they wish
  • you may arrange for other deductions to be made from your Parental Leave Pay, and
  • you may salary sacrifice some or all of your Parental Leave Pay through voluntary contributions to superannuation

Except for PAYG and child support deductions, these arrangements will depend on what you and your employer agree on. This is the same way you make agreements about your wages.

Payment by us

We’ll pay you directly in fortnightly instalments if:

  • your employer does not have to provide your Parental Leave Pay
  • you don’t have an employer
  • you’re self employed, or
  • you receive an income support payment from us

If we provide your payment:

  • we’ll withhold PAYG at the rate of 15%, unless you request another rate
  • we’ll deduct child support from your Parental Leave Pay if we are required to do so
  • you won’t be able to salary sacrifice Parental Leave Pay
  • you can voluntarily request a family assistance debt to be deducted, and
  • you may arrange for other deductions to be made from your Parental Leave Pay through Centrepay

Page last updated: 9 October 2017