A statutory entitlement under Australia's Fair Work Act 2009 and Paid Parental Leave scheme, providing eligible employees with up to 12 months of unpaid parental leave (extendable to 24 months) plus government-funded Parental Leave Pay of up to 22 weeks at the national minimum wage, with plans to extend to 26 weeks by July 2026.
Key Takeaways
Australia's approach to maternity leave has evolved significantly since the Paid Parental Leave scheme launched in 2011. Before that, there was no government-funded paid leave for new parents at all. Today, the system combines two distinct components: unpaid parental leave under the Fair Work Act (up to 12 months, extendable to 24) and government-funded Paid Parental Leave (currently 22 weeks, rising to 26 weeks by July 2026). The legal framework is deliberately gender-neutral. The Fair Work Act refers to 'parental leave' rather than maternity or paternity leave. Both birth parents and their partners are covered, though the Paid Parental Leave entitlement is shared between them. In practice, birth mothers take the majority of the paid leave weeks. The government payment is modest: $882.75 per week in 2024/25, which is the national minimum wage rate regardless of the employee's actual salary. For a woman earning $100,000 per year ($1,923/week), the government payment represents a 54% pay cut. This is why employer-funded parental leave policies matter enormously in Australia's talent market. Companies like the Big Four accounting firms, major banks, and tech companies now offer 16 to 26 weeks of employer-paid leave at full salary on top of the government scheme.
The full picture involves both the Fair Work Act entitlements and the government-funded scheme.
| Entitlement | Duration | Pay | Eligibility |
|---|---|---|---|
| Unpaid parental leave | 12 months (extendable to 24) | Unpaid | 12 months' continuous service with the employer |
| Paid Parental Leave (PPL) | 22 weeks (26 weeks from July 2026) | $882.75/week (minimum wage) | Work test + family income under $350,000 |
| 'Keeping in touch' days | Up to 10 days during leave | Normal pay rate | Both parties must agree |
| Right to request flexible work | On return from parental leave | N/A | Employer must have 'reasonable business grounds' to refuse |
| Transfer to safe job | During pregnancy if unsafe | Same pay rate | Must provide medical certificate |
| Pre-adoption leave | Up to 2 days unpaid | Unpaid | For adoption-related interviews or examinations |
The Paid Parental Leave scheme is administered by Services Australia and funded by the federal government. It has changed substantially since 2023.
The claimant must have worked at least 10 of the 13 months before the birth (or expected date of birth) and performed at least 330 hours in that 10-month period (roughly one day per week). The work can be across multiple employers. Self-employed work counts. Gaps of up to 12 weeks between work periods don't break the qualifying period. Employees who experience pregnancy complications that prevent them from meeting the work test may qualify for an exemption.
The family income test replaced the individual income test in July 2023. The combined family income must be under $350,000 per year. This change expanded eligibility significantly: previously, if an individual earned above $156,647, they were excluded regardless of family circumstances. Under the new test, a couple earning $170,000 each ($340,000 combined) would qualify. The income test uses the previous financial year's taxable income.
The government is incrementally increasing PPL entitlements. From July 2024: 22 weeks total (20 weeks for the primary claimant, 2 weeks reserved for the partner on a 'use it or lose it' basis). From July 2025: 24 weeks total. From July 2026: 26 weeks total (the full expansion). The partner-reserved weeks encourage shared caregiving and can't be transferred to the primary claimant.
The government scheme provides a floor. Many employers build on top of it.
In 2024, competitive employer-funded parental leave in Australia ranges from 14 to 26 weeks at full pay for the primary carer. The public sector typically offers 14 to 18 weeks. Financial services, consulting, and tech often provide 18 to 26 weeks. Retail and hospitality tend to offer 6 to 10 weeks if any. Employer-paid leave usually runs concurrently with the government PPL, meaning the employee receives both the employer payment and the government payment during the overlap period.
Employers aren't required to pay superannuation on unpaid parental leave periods. However, a growing number of companies now pay super contributions during the full leave period as a gender equity measure. The Workplace Gender Equality Agency (WGEA) tracks this, and it's increasingly expected by employees. Not paying super during leave contributes to the retirement savings gap between men and women, which is estimated at 23% on average.
The Fair Work Act sets out notification timelines that both parties must follow.
The employee must give at least 10 weeks' notice of their intention to take parental leave and the expected start and end dates. At least 4 weeks before the leave starts, they must confirm the actual dates. If the employee wants to change their return date, they must give at least 4 weeks' notice. These timelines apply to unpaid parental leave under the Fair Work Act. The PPL claim to Services Australia has its own separate process and deadlines.
The employer can ask for evidence of the pregnancy or expected date of birth (a medical certificate or statutory declaration). For a 'safe job' transfer, the employee must provide a medical certificate stating she's fit for work but that it would be inadvisable to continue in her current position due to illness or risks associated with the pregnancy.
Australia's parental leave protections include specific provisions for pregnant employees whose regular work poses a health risk.
If a pregnant employee provides a medical certificate saying she's fit for work but her current duties are unsafe, the employer must transfer her to a safe job at the same pay rate and hours. The safe job doesn't need to be at the same level or in the same team, but it must pay the same. If the employee normally works overtime or shifts, the safe job pay is based on the full rate she'd normally earn.
If no appropriate safe job is available, the employee goes on 'no safe job' leave. For employees with 12 months' service, this is paid at the base rate of pay for their ordinary hours. For employees with less than 12 months' service, it's unpaid. This provision prevents employers from simply sending pregnant workers home without pay when their normal role involves physical risks.
Key data points on parental leave patterns and policy in Australia.
The return-to-work framework includes specific rights that HR teams must accommodate.
After parental leave, the employee is entitled to return to the position they held before the leave. If that position no longer exists (due to genuine restructuring), they're entitled to a comparable available position that matches their skills, qualifications, and experience. The pay must be at least equal to their pre-leave rate. 'Comparable' doesn't mean identical. A different team, location, or reporting line may be acceptable as long as the role, level, and pay are equivalent.
Employees returning from parental leave have a right to request flexible working arrangements under Section 65 of the Fair Work Act. The employer can only refuse on 'reasonable business grounds.' Since June 2023, employers who refuse must provide written reasons and try to reach agreement on alternative arrangements. If they can't agree, either party can apply to the Fair Work Commission for a determination. This has given returning parents significantly more bargaining power.