Parental Leave Pay: Employer Responsibilities and Changes from July 2023

What is Parental Leave Pay?

Parental Leave Pay (PLP) is a government payment that helps parents take time off work to care for a new child. In Victoria, PLP is paid at the National Minimum Wage. Parents can receive up to 18 weeks of PLP, which can be taken in one block or split up over a period of time.

What are the employers’ responsibilities?

The government pays the company to pay the employee for parental leave, in which the payment will be the equivalent of the employee’s regular pay for up to 18 weeks.

As an employer, you will need to:

  • Provide Parental Leave Pay to eligible employees.
  • Withhold tax from Parental Leave Pay.
  • Give employees a record of Parental Leave Pay.
  • Include Parental Leave Pay in annual or part-year payment summaries.
  • Keep records of payments made to and from the government.
  • Report changes to employee status or bank details.
  • Return any unpaid funds.

What employers don’t need to do:

  • Provide Parental Leave Pay before funds are received from the government.
  • Make extra superannuation contributions.
  • Accrue extra leave for employees.
  • Create a new bank account.
  • Report to the government regularly.
  • Separately identify Parental Leave Pay in annual financial statements.
  • Pay extra worker’s compensation premium liabilities.
  • Pay extra payroll tax.

what will be changed starting from July 2023?

Starting July 1, 2023, the current entitlement to 18 weeks’ paid parental leave pay will be combined with the current Dad and Partner Pay entitlement to 2 weeks’ pay. This means partnered couples will be able to claim up to 20 weeks’ paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks.

Whether you are an employer or an employee, if you do not understand your employment rights, please contact us immediately. Our lawyers are very willing to answer your related legal questions and ensure that you are not unfairly exploited in the employment relationship.

Source: https://www.servicesaustralia.gov.au/parental-leave-pay

Disclaimer: This is only a general summary and guidance and cannot be regarded as a specific question for your individual questions. The law is complicated, and we strongly recommend that you seek professional legal advice. Canaan Lawyers will not be liable for any loss or damage caused by any person due to the information contained or missing in the document.