About the scheme
The Paid Parental Leave scheme provides financial support for eligible parents. This helps them take time off work to care for a newborn or recently adopted child.
- complements other employer provided birth or adoption leave entitlements
- recognises taking time off to care for a child is part of the usual course of life for parents
- promotes equality between men and women and balance between work and family life.
The scheme also helps you:
- retain valuable and skilled staff by encouraging them to stay connected with their workplace when they become parents
- enhance a family friendly workplace without you having to fund Parental Leave Pay
- increase long term workforce participation for new parents.
There are 2 payments available to families under the scheme:
- Parental Leave Pay
- Dad and Partner Pay.
Both payments are taxable and paid at the rate of the National Minimum Wage.
Parental Leave Pay
Parental Leave Pay is for the child’s primary carer. If you need to provide Parental Leave Pay we give you the funds to pass on to your employees. You should provide the funds in the same way you pay their salary or wages.
Parents can get up to 18 weeks’ pay. To be eligible, they must not be working from the time they become their child’s primary carer. They must also not work until the end of their Paid Parental Leave period.
Parents can’t get income from JobKeeper Payment at the same time as Parental Leave Pay. They can get Parental Leave Pay after the income they get from JobKeeper Payment ends. This is if they didn’t work since their child’s birth or adoption.
Employees can take Parental Leave Pay before, after or at the same time as they’re getting paid or unpaid leave. They must take the Paid Parental Leave period as a continuous block. It can start from the day of birth or adoption, or on a later date. Your employee will tell us when they want it to start.
To get the full amount of Parental Leave Pay, parents need to claim no more than:
- 34 weeks after the birth or adoption, if it is before 1 July 2020
- 40 weeks after the birth or adoption, if it’s on or after 1 July 2020.
Flexible Paid Parental Leave
Parents with children that are born or adopted on or after 1 July 2020 will get up to 30 Flexible Paid Parental Leave days.
They can connect some or all of these to their 12 week Paid Parental Leave period. This will extend their continuous period to a maximum of 18 weeks.
If you are providing their Parental Leave Pay:
- you’ll only need to provide the Paid Parental Leave period and any connected Flexible Paid Parental Leave days.
- we’ll provide any other Flexible Paid Parental Leave days.
You won’t need to make any special changes to the way you provide Parental Leave Pay.
Read more about who can get Parental Leave Pay.
Dad and Partner Pay
Dad and Partner Pay is for working dads or partners, including adopting parents. They can get up to 2 weeks’ pay. To be eligible they must be on unpaid leave and not working during this time. Dads or partners may ask you for unpaid leave so they can get this payment. To get the 2 weeks of Dad and Partner Pay, it must start within 50 weeks of their child’s birth or adoption.
You won’t need to provide Dad and Partner Pay. As it’s only a 2 week payment, we pay it straight to your employee.
You can choose to pay your employee a top-up payment to supplement their Dad and Partner Pay. For example, the difference between their Dad and Partner Pay and their normal wage. We don’t consider a top-up payment as paid leave for the purposes of Dad and Partner Pay eligibility. You can’t use JobKeeper Payment as a top up payment.
Read more about who can get Dad and Partner Pay.
Page last updated: 16 September 2020
This information was printed 22 September 2020 from https://www.servicesaustralia.gov.au/organisations/business/services/centrelink/paid-parental-leave-scheme-employers/what-you-need-know/about-scheme. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.