It was Australia Day yesterday!
Good news for female Australian employees!
From July 1st 2025, the Australian Government intends to pay superannuation guarantee (SG) contributions on government-paid family leave benefits. This is to reduce the gender income gap at retirement and is a significant acknowledgement that women take a 25% reduction in their pension due to taking substantial time off due to raising a family or to meet family care requirements.
SG contributions also increase to the long-awaited 12% on the same date!
Employers should consider whether to be equally generous and pay SG contributions on earnings above statutory Parental Leave Pay.
🌍 Global employers can use this as an opportunity to review what they do on pension contributions for all employees on parental leave around the world. Haines Global Pensions can help.