Superannuation and parental leave – NGS Super
In Australia, parents of a newborn or adopted child may be entitled to paid parental leave options. Parental leave is a way to continue to receive an income while you are caring for a child and not working. Receiving an income on parental leave is helpful, however not all parental leave will include payments to your superannuation.
Parental Leave Pay from the government
Parental Leave Pay is a scheme by the Australian government that provides the primary caregiver of a newborn or adopted child a weekly wage to cover time away from work.
There are certain requirements you will need to meet to be eligible for the payment, including the income test and the work test. Visit servicesaustralia.gov.au for more information.
Parental Leave Pay from your employer
Each employer will have their policy, which may or may not offer paid parental leave. Employers are not obligated to pay parental leave, and each employer will have their own policy.
In some instances, you may be eligible for paid leave from the government and your employer.
Do you receive super contributions on parental leave?
Employers don’t need to pay superannuation while an employee is on parental leave, whether it’s paid or unpaid. There are some companies that will pay superannuation contributions on top of your paid leave, but it is up to the company.
It’s also important to note that you won’t be receiving superannuation contributions from the government if you are receiving Parental Leave Pay.
How can you boost your retirement savings if you’re not receiving super on parental leave?
- Salary sacrificing
- Voluntary contributions
For more information, why not connect with a NGS Super Specialists? They are here to help. It’s free, and they can answer your questions about superannuation. www.ngssuper.com.au
