We've helped businesses save $55m with our all-in-one platform. Get instant access to this template and 115+ others, plus AI-powered document creation, starting completely free.
Parental leave pay helps parents take time off work to care for a newborn or newly adopted child. Many ask, "How much is parental leave pay?" PLP is based on the national minimum wage, with payments increasing over time. From 2026, parents can also receive superannuation contributions and share PLP with their partners.
This guide explains payment amounts, eligibility rules, employer responsibilities, and recent changes to help parents and businesses plan ahead.
Parental leave pay is based on the national minimum wage, currently $183.16 per day before tax. Parents can receive up to 110 days (22 weeks) in 2024, increasing to 130 days (26 weeks) by 1 July 2026. PLP is taxable income and may be paid by Services Australia or the employer.
[ez-toc]
Parental leave pay helps eligible parents take time off work to care for a newborn or newly adopted child. It is based on the national minimum wage, currently $183.16 per day before tax. This rate applies to full-time, part-time and casual workers who meet the eligibility criteria.
The duration of PLP increases over time to give parents more financial support while caring for their child.
YearTotal PLP Duration1 July 2023 – June 2024110 days (22 weeks)1 July 2024 – June 2025120 days (24 weeks)1 July 2025 – June 2026130 days (26 weeks)
Parents can take PLP in flexible blocks rather than all at once. This change allows families to balance work and caregiving responsibilities.
PLP is taxable income. The amount parents receive depends on their tax rate and financial situation. If too little tax is withheld from their PLP payments, some parents may need to pay additional tax at the end of the financial year.
Parents can choose to have tax deducted at a higher rate to avoid unexpected tax bills. To understand how PLP affects income and tax obligations, speak with a tax professional or visit the Services Australia website.
Parental leave pay has changed to better support working parents. The updates include a longer leave period, superannuation contributions, and flexible leave-sharing options.
PLP is now more flexible for families. Parents can split PLP and take time off at the same time or separately. From July 2026, each partner will have 20 reserved days of PLP, which cannot be transferred to the other parent.
This update encourages both parents to take leave and supports gender-equal caregiving. It also gives families more options when planning their leave period.
These changes support working parents and ensure more financial security during birth or adoption. The Minister for Social Services, Amanda Rishworth, stated that the paid parental leave scheme changes promote workplace relations and help parents return to work after leave.
The reforms also aim to reduce the gender pay gap by encouraging both parents to take leave. Parents who need to claim PLP should assess their options early and check their eligibility on the Services Australia website.
To claim parental leave pay, you must meet specific rules. These rules ensure that only eligible parents receive payments. The main factors include work history, income and residency.
To claim parental leave pay, parents must meet these conditions:
Many parents assume they are not eligible when they may still qualify. Here are some common myths:
Use this checklist to assess if you are eligible:
✔ Are you the primary carer?
✔ Have you worked 330 hours in 10 months before birth or adoption?
✔ Is your income below $168,865?
✔ Do you meet residency rules?
✔ Have you registered your child’s birth?
Parents can claim parental leave pay through Centrelink via MyGov. It is best to apply early to avoid payment delays. You can submit your claim up to 3 months before the expected birth or adoption.
Follow these steps to get paid on time:
Employers are key in processing eligible employees' Parental leave pay. Some employers must manage PLP payments, while others are not required to, in which case Services Australia pays PLP directly.
Employers must pay PLP to an employee if:
✔ The employee has worked for them for at least 12 months before the birth or adoption.
✔ The employee remains employed while receiving PLP.
✔ The employee must receive PLP for at least 40 consecutive days.
Employers required to distribute PLP must:
✔ Register with Services Australia before processing PLP.
✔ Pay PLP in the regular pay cycle.
✔ Issue payslips that show PLP payments and tax deductions.
✔ Report payments to the ATO via Single Touch Payroll (STP).
🔹 Does PLP affect paid leave? No, PLP is separate from employer-funded parental leave. Employees may combine both if their employer allows it.
🔹 Do employers pay for PLP? No, PLP is government-funded, and employers are reimbursed after processing payments.
🔹 What if an employee stops working? If an employee resigns or is terminated, PLP is not included in their final payout. Instead, Services Australia takes over payments.
PLP is separate from employer-funded parental leave. Employees can receive PLP before, during, or after employer-paid leave (such as annual or long service leave).
Some employers offer additional paid parental leave. Employees should check with their employer to understand their full leave entitlements.
From 1 July 2025, parents of children born or adopted from this date will be eligible for superannuation contributions on their Parental leave pay. Payments will begin in July 2026, helping parents grow their retirement savings while taking time off to care for a newborn or adopted child.
After the financial year ends, the Australian government will pay 12% of the total PLP into a parent’s super fund. The contribution will be based on the PLP received during that financial year.
PLP ReceivedSuper Contribution (12%)$5,000$600$10,000$1,200$15,000$1,800
The amount added to the super depends on the total PLP payments received. Parents do not need to apply separately for this contribution. Services Australia will handle payments automatically.
To get super contributions, parents must:
Super contributions during unpaid leave help reduce the gap in retirement savings. Women, who often take longer career breaks, will benefit the most. Even small contributions can grow over time due to compounding interest.
Parents can grow their super faster by:
Parents should speak with their super fund to understand their options and maximise their retirement savings.
Adoptive parents can receive Parental leave pay if they meet the eligibility requirements. The rules for adoptive parents are similar to those for birth parents. The paid parental leave scheme ensures that parents caring for an adopted child receive financial support while taking time off work.
To claim parental leave pay, adoptive parents must meet these conditions:
The work test applies to adoptive parents as it does to birth parents. If an adoptive parent worked at least one day a week for 10 months before the adoption, they may be eligible. Self-employed parents and casual workers can also qualify if they meet the minimum work hours.
Adoptive parents can receive PLP if they meet the same eligibility rules as birth parents.
Adoption TypePLP EligibilityLocal adoptionsEligible if processed through a state agency.International adoptionsEligible if finalised under Australian law.Permanent foster careMay not qualify unless leading to full adoption.
The payment has changed to provide more support for parents. From 1 July 2023, PLP increased from 90 days (18 weeks) to 110 days (22 weeks). It will rise to 130 days (26 weeks) by July 2026. The Australian government will also add superannuation contributions from 1 July 2025.
No, employer-funded leave is separate from PLP. Some parents get both PLP and paid leave for a child born if their workplace allows it.
You must meet the work test by working at least 330 hours over 10 months before your child was born or adopted from 1 July 2023.
If you return to work early, you cannot receive your parental leave pay while on leave. However, some exceptions apply, such as "keeping in touch" days.
The latest information was printed on the Services Australia website on 26 February 2025. You can also check government reference materials on parental leave rules.
Parental leave pay helps parents take time off work while caring for a newborn or newly adopted child. PLP is increasing to 26 weeks by July 2026, is based on the national minimum wage, and is taxable income. Employers must process PLP for eligible workers and report payments to the ATO. From July 2025, the government will contribute 12% of PLP to super funds. Parents can also share PLP, allowing partners to split leave. Parents should apply early, check tax obligations, and review super contributions to avoid delays. Employers must ensure payroll compliance and understand their obligations. Check PLP eligibility on the Services Australia website, discuss leave with your employer, and use Business Kitz for payroll and compliance support.
Copyright © 2025 Business Kitz 14312161