Having a baby? Work it out first

Know the nitty-gritty of parental leave entitlements

BEFORE taking parental leave, workers should know their rights and plan ahead for their return to work so they do not short-change their finances or time spent with their baby.

The Australian Bureau of Statistics reports the average mother who returns to work after having a child takes 32 weeks of paid and unpaid leave.

Women, as well as men who plan to be the primary carer, should ask themselves three questions well before the arrival of a new child.

Am I eligible for parental leave pay?

To receive payments from the Australian Government Paid Parental Leave Scheme, workers must have been employed for at least 10 of the 13 months before the birth or adoption of the child and worked at least 330 hours in that 10-month period, with no more than eight weeks between work days.

Workers must have an individual taxable income of less than $150,000 and not return to work during the paid leave period.

Parental Leave Pay is $695 a week before tax – the national minimum wage – for a maximum of 18 weeks and can be received on top of any paid parental leave offered by the employer.

To check eligibility for employer-funded paid parental leave, workers should talk to their company’s HR department.

What are my entitlements while on leave?

Paid leave – such as annual and sick leave – may accumulate while workers are on employer-funded paid parental leave.

It does not accumulate if a worker is on unpaid leave or receiving the government’s Parental Leave Pay.

The National Employment Standards stipulates workers are entitled to 12 months of unpaid parental leave as long as they have completed at least 12 months of continuous service with the employer.

If a worker decides to take unpaid leave, they are entitled to up to 10 paid “keeping in

touch days” at work to ensure the transition back will be smooth.

Learn more at the Fair Work Ombudsman website www.fairwork.gov.au.

What about super?

Think about the potential effect on retirement savings.

Research from REST Industry Super reveals women are 30 per cent less likely than men

to make superannuation plans for their career break and just 16 per cent make a super contribution during their break.

On average, women’s super ends up $159,590 behind where

it should be as a result. Women can make a voluntary contribution or salary sacrifice more to their super while on leave or after they return to ensure their balance does not suffer.