Parental Leave Pay Calculator
Calculates parental leave payments based on the government’s Paid Parental Leave Scheme.
Quick Use Samples
Your Leave Plan & Pay
Estimated Income During Leave
Your total government payment over 22 weeks is $19,420.28. This is also your Total Income during this period. This represents an income shortfall of approximately $13,579.72 compared to your normal pay. Note that employer-funded parental leave is not included in this calculation.
Weekly Income Flow During Leave
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What is Parental Leave Pay?
Parental Leave Pay is a government-funded scheme in Australia that provides financial support to eligible parents of newborn or recently adopted children. It is designed to help parents take time off work to care for their child. The payment is made at the National Minimum Wage rate.
Behind the Formula
The scheme provides up to 20 weeks of paid leave. This can be taken by one parent, or shared between both parents. The payment is calculated as 38 hours per week multiplied by the current National Minimum Wage. This amount is taxable and is usually paid via your employer, just like a normal wage.
Expert Insights
- The scheme is becoming more flexible. Recent changes encourage both parents to share the leave, with 'use it or lose it' portions for dads and partners to promote a more equal sharing of caring responsibilities.
- To be eligible, you must meet an income test (your individual adjusted taxable income must be below a certain threshold) and a work test (you must have worked a certain number of hours in the period before the birth or adoption).
- This government payment is separate from any employer-funded parental leave. Many employers offer their own paid parental leave schemes, and you may be able to receive both.
Actionable Tips
- Apply for Parental Leave Pay early. You can submit your claim up to 3 months before the expected date of birth or adoption. This will help ensure your payments start on time.
- Talk to your employer about how you plan to take the leave. You can take it in a continuous block, or flexibly (e.g., a few days a week) with your employer's agreement.
- Check your eligibility on the Services Australia website. The rules can change, so it's important to get the most up-to-date information for your circumstances.
Real-World Examples
A primary carer taking a block of leave
A new mother takes a continuous block of 18 weeks of Parental Leave Pay, paid through her employer, allowing her to focus on caring for her newborn.
Parents sharing the leave
A couple decides to share the leave. The mother takes the first 12 weeks, and the father then takes the remaining 8 weeks to be the primary carer.
Flexible leave for a self-employed parent
A self-employed graphic designer takes their Parental Leave Pay flexibly, working 2 days a week and taking government pay for the other 3 days, allowing them to keep their business running while caring for their child.
Glossary of Terms
Services Australia
The government agency responsible for delivering social security payments, including Parental Leave Pay, through Centrelink.
Adjusted Taxable Income
Your taxable income plus other items, such as reportable fringe benefits and net investment losses. This figure is used for the income test.
Work Test
The requirement that you have worked a certain number of hours in the 13 months prior to the birth or adoption to be eligible for Parental Leave Pay.