Telcos ramp up parental leave perks in tight job market
Spark is the latest telco to offer more generous parental leave provisions in what remains a tight tech-job market.
The telco’s new Whakapua¯wai programme sees a staff member receive 100 per cent of their normal salary for 26 weeks as the telco tops up the Government’s parental leave payments (which runs to $661.12 a week for up to 26 weeks).
Secondary carers will receive four weeks paid leave, up from two.
Spark will also continue employer Kiwisaver contributions of up to 3 per cent during parental leave, and a return-to-work policy allows primary caregivers to work 80 per cent of their regular hours on 100 per cent pay for their first three months back.
Waikato University law professor Claire Breen recently highlighted that only 1 per cent of Kiwi men take paid parental leave and only 4 per cent take unpaid leave (a partner is legally entitled to up to two weeks of leave, which is unpaid; paid leave can be transferred from a primary to a secondary caregiver).
“A key barrier was the $661.12 weekly payment, which Breen described as “meagre”.
Vodafone
Last month, rival Vodafone NZ said it would maintain its Kiwisaver contributions up to 4 per cent for a full year of parental leave.
The telco, which will rebrand as One NZ in the new year, also introduced 26 days of flexi-leave for primary or secondary carers to take at any point during the two years post-birth.
2degrees
2degrees has been topping up parental leave payments to 100 per cent of pay for 26 weeks since May 2021.
It matches Kiwisaver contributions 2:1 when a caregiver returns, for a period equal to the duration of unpaid leave (up to 26 weeks).
The telco also offers a full week’s pay for a four-day work week during the first three months of a caregiver’s return to work.
Chorus
UFB network operator Chorus offers eight weeks’ fully paid parental leave for a primary or secondary caregiver. The leave can be used at any point over the 18 months after the birth.
The telcos’ moves come as the unemployment rate sits at 3.3 per cent in the September quarter.
Employers have also been under pressure to help address the 20 per cent retirement savings gap between men and women’s average Kiwisaver balances.
In June, research by NZIER found women who choose to leave the workforce or work part-time after having children could be forfeiting between $58,000 and $318,000 in retirement savings.
In August, Z Energy said it would contribute 5 per cent towards Kiwisaver for all employees on parental leave for that entire leave period and pay employees working part-time, (more than 20 hours a week) 5 per cent towards their Kiwisaver based on their full-time salary equivalent rather than their actual pro-rate pay.
Last month, Contact introduced a full salary top-up for primary caregivers for 26 weeks.
It also offered a $5000 payment toward childcare, 10 days special leave for pregnancy-related appointments and three months’ free power (if they are a Contact customer).
A partner gets four weeks’ paid leave, which can be taken at any point over the year post-birth, and three months’ free power.