Paid Parental Leave – Eligibility and Employer Obligations
Thursday, December 8, 2011 by Wakeful Partners |
| Taxonomy: Industry News, Information / Dates
Australia’s first national paid parental leave scheme funded by the federal government started on 1st January 2011. The scheme legally confirms parents rights to paid maternity leave after a child’s birth.
To find out more of the basics, please see the below summary.
Paid Maternity Leave – Key Facts
- Paid at a national minimum wage $570 week (before tax)
- Women has to have been earning less $150,000 per annum.
- Can take up to 18 weeks paid leave (transferrable to their partners) within first year of child’s birth.
- Full time, part time or casual workers, contractors and self employed persons maybe eligible provided they meet work test.
- Work test means they must have worked for at least 1 day a week on average over 10 of last 13 months.
- Claims can be lodged up to 3 months before the baby’s due date to ensure payments begin as soon as possible from the day the child is born.
Onus is on Employers
- From 1st July 2011 employers will be responsible for providing paid parental leave to eligible employees.
- They will only be responsible if the employee has worked in their business for 12 months or more.
- Centrelink will transfer the required money to employers to pay the parental leave.
- Employers then make payment under the normal pay cycle and withhold tax appropriately
- Employers will not have to make superannuation contributions on the parental leave, nor will it increase payroll tax or workers compensation payments.
- Employers can opt out of making payments if the employee has worked in their business less than 12 months. Centrelink will thus make payments in this scenario.