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The Paid Parental Leave scheme applies to all employers, both large and small businesses. You may have to provide Parental Leave Pay to eligible employees and have ongoing responsibilities in managing your role in this scheme.
Which employees you must provide Parental Leave Pay to
As an employer, you must provide Parental Leave Pay to eligible employees who meet the criteria for an employer determination. This includes full-time, part-time, casual, seasonal, contract and self-employed workers. You don’t have to provide it to independent contractors, short term employees or someone who stopped being your employee.
Once your employee lodges a claim with us, we’ll determine whether you need to provide Parental Leave Pay to them, based on the information in their Parental Leave Pay claim. Read about examples of your role in the scheme.
If you or your employee is unsure if they’re eligible, you can find out more about who can get Parental Leave Pay.
We have information available to help you provide Parental Leave Pay.
Opt-in to provide Parental Leave Pay
If your employee doesn’t meet all the requirements for an employer determination, you don’t need to provide Parental Leave Pay. However, if you and your employee agree, you can opt in to provide it for them.
Learn more about how to opt in to provide Parental Leave Pay.
When we will pay them instead
We’ll provide Parental Leave Pay directly to any employees who:
- aren’t eligible to get it from you as their employer
- are getting an income support payment from us.
If your employee wants to get their Parental Leave Pay in multiple blocks, we’ll only ask you to provide their first block of payment. We’ll provide any following blocks of payment directly to them.
Who gets the Paid Parental Leave Superannuation Contribution
If your employee gets government funded Parental Leave Pay for a child born or adopted from 1 July 2025, the Australian Taxation Office (ATO) will pay them a superannuation contribution. This is called the Paid Parental Leave Superannuation Contribution (PPLSC). The contribution is based on the superannuation guarantee rate.
You don’t need to calculate or pay this contribution. It will be paid directly to the employee’s superannuation fund after the relevant financial year ends, starting from July 2026.
While you’re not required to pay superannuation contributions on Parental Leave Pay, you can make voluntary contributions if you choose.
Read more about the Paid Parental Leave Superannuation Contribution on the ATO website.