What is the Paid Parental Leave scheme?
The Paid Parental Leave scheme is a new entitlement for working parents of children born or adopted from 1 January 2011.
Eligible working parents can get 18 weeks of government funded Parental Leave Pay at the rate of the National Minimum Wage (currently $589.40 a week before tax).
Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.
What are the benefits of the Paid Parental Leave scheme?
The Paid Parental Leave scheme is designed to:
- provide financial support during the time parents take off work, in the vital early months, to care for their newborn or recently adopted child;
- enhance child and maternal health and development;
- encourage women’s workforce participation; and
- promote gender equity and work/family balance.
The Paid Parental Leave scheme will help employers:
- retain valuable and skilled staff by encouraging them to stay connected with the workforce when they become parents;
- enhance existing family friendly workplace conditions without having to fund Parental Leave Pay themselves; and
- in the long-term through the increased workforce participation of parents.
What is my role in providing Parental Leave Pay?
You must provide Parental Leave Pay to an eligible employee who:
- has a child born or adopted from 1 July 2011;
- has worked for you for at least 12 months prior to the expected date of birth or adoption;
- will be your employee for their Paid Parental Leave period;
- is an Australian-based employee; and
- is expected to receive at least eight weeks of Parental Leave Pay.
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. 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.
Your business must have an Australia Business Number to participate in the scheme.
Centrelink will contact you if you are required to provide Parental Leave Pay to an employee.
The Family Assistance Office will provide Parental Leave Pay to an eligible parent who does not receive it from their employer.
Paid Parental Leave scheme for Employers more information
For more information about the Paid Parental Leave scheme and your responsibilities as an employer you can:
For information about working entitlements and workplace obligations refer to the Fair Work Ombudsman or call 13 1394.
For access to all the government information and services Australian businesses need, visit business.gov.au
You can also call the Small Business Support Line on 1800 777 275 (8 am to 8 pm AEST Monday to Friday).