Here’s a list of companies that will pay you super on the unpaid part of your parental leave
October 2, 2019
October 2, 2019
Did you know that for many Australians taking time off for parental leave, you may get some money from your employer to replace your wage for a certain number of weeks, but most people don’t receive any superannuation? In fact taking time off to raise a young family is one of the key moments in life where the gap in retirement savings between men and women begins to blow out.
Well the good news is that businesses across Australia are starting to address this, with a number of large corporates such as HSBC, Woolworths, Unilever and more recently consulting firm PWC have having started to pay superannuation to staff that are taking time off for parental leave – which as you’d imagine is still typically women who are taking time out of the workplace to look after young babies. It’s for the most part an initiative to help to close the super gap, which sees women on average retiring with nearly half of the retirement savings as men.
As with the introduction of many an initiative, once one starts others follow suit and this is a copy cat trend that we’re delighted to see. Most recently Bain and Co have announced that consulting form Bain & Company will superannuation contributions for the unpaid portion of primary parental leave.
While this no doubt is a function of organisations wanting to “do the right thing” by their employees it’s also certainly seen as a business issue. Spokespersons within Bain & Company in Sydney recently stated that “organisations with greater diversity have greater retention, higher levels of employee advocacy, overall better performance and faster growth.” So naturally companies are looking for ways to retain women employees as of course it’s a central part of maintaining workplace diversity.
Either way you examine the issue, it’s a massive and positive step forward, we’re looking forward to seeing more companies taking up this initiative – just as we’re looking forward to seeing gender parity in those taking time off on parental leave too.
We’ve started putting together a list of companies that have started to pay superannuation on the unpaid portion. Let us know if there are others on the we can add to the list:
Bain & Co
Corrs Chambers Westgarth
Others? Let us know and we’ll add them to the list. firstname.lastname@example.org