Parental Leave Payments to Increase in July 2014
Families with new born babies can expect an increase in parental leave payments from 1 July this year.
The maximum amount of parental leave payment for eligible employees will increase from $488.17 to $504.10 a week. To work out if you’re eligible for paid parental leave, and what payment you’ll receive, use our online paid parental leave calculator.
The minimum amount of parental leave payment for self-employed persons will also increase, from $137.50 to $142.50 a week.
The maximum rate is reviewed every year to account for any increase in average weekly earnings.
Under the Parental Leave and Employment Protection Act 1987, parents eligible for the scheme are entitled to up to 14 weeks paid leave at a rate calculated on the basis of their average weekly earnings.
Please also note that the following changes to parental leave were announced in Budget 2014:
- Paid parental leave will be extended from 14 weeks to 16 weeks from 1 April 2015, and then to 18 weeks on 1 April 2016.
- The Parental Tax Credit will be increased from a maximum of $150 per week for eight weeks to a maximum of $220 per week for 10 weeks from 1 April 2015.
- The eligibility for paid parental leave will also be extended from 1 April 2016 to people in less-regular jobs and workers with more than one employer and to “Home for Life” caregivers and people with similar permanent care arrangements.
More information about Paid Parental Leave, including forms and sample letters are available online.