How Much Paid Parental Leave Must Employers Provide in Australia?

If you’re hiring in Australia, you’ll almost certainly field questions about parental leave. The rules have changed in recent years, and it’s normal to wonder what you must pay, what the government pays, and what’s simply best practice to attract and retain great people.

Here’s the short answer: under the National Employment Standards, you don’t have a blanket legal obligation to pay for parental leave out of your own pocket. However, your employees may be eligible for the Australian Government’s Paid Parental Leave scheme, and you must provide job-protected unpaid parental leave if eligibility criteria are met. Many employers also choose to offer their own paid parental leave as a benefit.

In this guide, we break down how the government scheme works, your legal obligations as an employer, and what to think about if you’re considering offering employer-funded paid leave.

What Counts As Paid Parental Leave In Australia?

There are two distinct concepts of parental leave in Australia:

• Government Paid Parental Leave (PPL): This is funded by the Commonwealth and paid at the national minimum wage, for eligible birth, adoption and new parents. From 1 July 2023, the scheme became more flexible and can be shared between partners.
• Employer-Funded Paid Parental Leave: This is any paid leave you voluntarily provide (or that is required under an enterprise agreement or employment contract). This can sit on top of, or run alongside, the government scheme.

Separately, the National Employment Standards (NES) provide up to 12 months of unpaid parental leave for eligible employees, with the option to request an additional 12 months. This is a minimum entitlement and applies regardless of whether paid leave is available.

Are Employers Legally Required To Provide Paid Parental Leave?

Generally, no. The NES do not require employers to pay for parental leave. Your core obligations are to provide eligible employees with unpaid parental leave and job protection, and to comply with anti-discrimination and workplace rights protections.

However, you may be contractually required to offer paid leave if you’ve promised it in an Employment Contract, an enterprise agreement, a workplace policy, or if it’s an established entitlement in your organisation.

Under the government’s scheme, Services Australia pays PPL directly to employees by default. You can act as the paymaster only if you and your employee agree. If you do facilitate payments, Services Australia reimburses you - you’re not funding the government PPL out of pocket.

If you want to stand out as an employer of choice, many businesses layer their own paid benefit on top of the government scheme. If you go down that road, we strongly recommend a clear, accessible Parental Leave Policy so everyone knows how it works.

How Much Government Paid Parental Leave Is Available - And Who Can Access It?

The Australian Government’s Paid Parental Leave scheme is expanding over several years. At a glance:

• From 1 July 2023: 20 weeks (100 days) of flexible PPL shared between parents.
• From 1 July 2024: 22 weeks (110 days).
• From 1 July 2025: 24 weeks (120 days).
• From 1 July 2026: 26 weeks (130 days).

PPL is paid at the national minimum wage (before tax). It can be taken flexibly as blocks or single days within two years of the child’s birth or adoption, which helps parents stagger time off or work part-time while receiving some paid days.

Key points for employers to understand:

• It’s shareable: Parents can split the entitlement. Meeting the “equal access” rules may require each parent to take a minimum number of weeks, unless exemptions apply.
• Eligibility is assessed by Services Australia: Work tests, income tests and residency tests apply. You don’t decide and you don’t process claims - employees apply via Centrelink.
• Superannuation on PPL: The Government has announced it will pay superannuation on government PPL from 1 July 2025. This applies to the government scheme (not your own funds) unless you offer your own paid leave, in which case super rules for ordinary time earnings may apply to your top-ups - get tailored advice.

Many employers also get questions about paternity leave. Under the current PPL settings, partners can share the government-funded entitlement (subject to eligibility), and you can choose to offer partner-specific paid leave in your own policy if you want to provide more support.

What Do Employers Have To Provide Under The National Employment Standards?

Separately from the government PPL, the NES sets minimum parental leave rights that apply to most Australian employees. Your key obligations include:

1) Unpaid Parental Leave Entitlements

• 12 months unpaid leave: Available to eligible employees who have completed at least 12 months of continuous service by the expected birth or adoption date. Eligible casuals can also qualify if they work on a regular and systematic basis and expect ongoing employment.
• Request a further 12 months: Employees can request up to an additional 12 months of unpaid leave. You must respond in writing within 21 days and can only refuse on reasonable business grounds.
• Notice and evidence: Employees must usually give at least 10 weeks’ written notice and provide evidence (e.g. a medical certificate). You can set out details and forms in your Parental Leave Policy.

2) Job Protection And Return-To-Work

• Return to the same job: Employees are entitled to return to their pre-leave position. If it no longer exists, they must be offered an available, nearest comparable position in terms of pay, status and location.
• Safe job and transfer: If an employee is pregnant and their current role is unsafe, you must transfer them to a safe job or provide paid “no safe job” leave if no safe job is available (conditions apply).

3) Keeping In Touch And Communication

• Keeping in Touch (KIT) days: Employees can perform up to 10 KIT days during unpaid parental leave (and a further 10 if the leave extends beyond 12 months). These are optional, must not break the leave, and help with training or planning.
• Discuss changes: Keep reasonable contact about workplace changes that may affect the employee’s position. This helps meet good faith obligations and reduces surprises when they return.

4) No Adverse Action Or Discrimination

• Workplace rights: It’s unlawful to take adverse action because someone is pregnant, on leave, or seeking to use an NES entitlement.
• Fair process: If performance or conduct issues arise, handle them carefully and consistently to avoid any perception they’re linked to parental leave. When in doubt, speak with an employment lawyer.

Remember, unpaid parental leave is a separate concept from other forms of unpaid leave, with its own eligibility and notice rules.

Should You Offer Employer-Funded Paid Parental Leave?

You don’t have to, but many employers now offer paid parental leave to compete for talent and support retention. Even a modest top-up (for example, a number of weeks at full or half pay) can make a big difference for families - and for your brand.

If you’re considering it, think practically about:

• Who is eligible? Length of service thresholds, inclusion of permanent and casual roles, and treatment of part-time hours.
• How does it interact with PPL? Will your paid leave be in addition to government PPL, or will you “top up” to full pay during government-paid weeks?
• Superannuation: Whether you will pay super on your employer-funded component (and how this aligns with your broader benefits framework).
• Flexibility: Whether leave can be taken in a single block, as half-pay to double the time, or split across months to support staggered returns.
• Operational planning: Cross-training, handovers, and backfilling roles to keep things running smoothly.

Whatever you decide, document it clearly. A tailored Parental Leave Policy helps you set eligibility, interaction with other leave types, notice and evidence requirements, KIT days, and return-to-work processes. This clarity reduces confusion and ensures consistent decisions across your team.

Practical FAQs For Employers

Do Casual Employees Get Parental Leave?

Casuals can access unpaid parental leave if they’ve been employed on a regular and systematic basis for at least 12 months and have a reasonable expectation of continuing employment. If you engage long-term casuals, make sure your Casual Employment Contract is up to date, and set out how parental leave requests will be handled in your policy.

What About Employees On Probation?

Probation doesn’t remove NES rights. If a new employee meets the eligibility criteria by the time leave starts, they can take unpaid parental leave. Managing expectations early helps - outline how leave works during a probation period in your onboarding documents.

Do I Have To “Top Up” Government PPL To Full Salary?

No. There’s no general obligation to top up, unless your contract or policy promises it. Some employers choose to top up to full or half pay as a competitive benefit - it’s your call, provided it’s applied consistently and in line with discrimination laws.

Can Employees Work While Receiving Government PPL?

The government scheme allows flexible paid days and Keeping in Touch days, but strict rules apply. Employees should confirm with Services Australia before working on days they intend to claim PPL. As an employer, make sure KIT days are used appropriately and documented.

What If An Employee Resigns During Or After Parental Leave?

They can resign with the usual notice. Handle end-of-employment processes fairly, including calculating any outstanding entitlements. For tricky scenarios (e.g., someone resigns mid-leave), it’s sensible to get advice, and you can also refer your team member to our guide on resignation during maternity leave for general information.

What Documents And Policies Should You Have In Place?

A strong paper trail makes parental leave straightforward for everyone. We recommend the following core documents:

• Parental Leave Policy: Sets out eligibility, how to apply, notice and evidence requirements, how your employer-funded benefit (if any) interacts with government PPL, KIT days and return-to-work steps. A clear Parental Leave Policy prevents misunderstandings.
• Employment Contracts: Full-time and part-time contracts should reference leave entitlements, policies and any paid parental leave benefits you provide. Use a current Employment Contract template aligned with the Fair Work framework.
• Casual Employment Contract: If you rely on casual staff, ensure your Casual Employment Contract deals with service continuity, rostering and policy application.
• Workplace Policies/Staff Handbook: A central handbook can link parental leave with related policies (flexible work, discrimination/harassment, WHS, and general workplace policies), so managers handle requests consistently.
• Payroll & Record-Keeping: Processes for tracking leave dates, KIT days, public holidays and any top-up payments. If you facilitate government PPL payments, align your payroll system with Services Australia requirements.

If you’re unsure how these pieces fit together in your workplace, a quick chat with an employment lawyer can help you set it up once and use it for years.

Key Takeaways

• There’s no general legal requirement for employers to fund paid parental leave; your firm obligations are job-protected unpaid parental leave under the NES and fair, non-discriminatory processes.
• The Australian Government’s Paid Parental Leave is expanding from 20 to 26 weeks over 2024-2026, is paid at the national minimum wage, and can be shared and taken flexibly.
• Services Australia pays PPL directly to employees by default; you only act as paymaster if both you and the employee agree, and you’re reimbursed for those payments.
• Eligible employees can take up to 12 months of unpaid parental leave (with the right to request another 12 months), plus safe job protections, Keeping in Touch days and a guaranteed return to work.
• Offering your own paid parental leave can be a powerful retention tool - document it clearly in a Parental Leave Policy and ensure contracts and payroll processes align.
• Keep contracts, policies and record-keeping tight, and seek advice when unique scenarios arise (casuals, probation, resignations, or how super applies to top-ups).

If you’d like a consultation on setting up parental leave the right way for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.