Active Super to pay super on parental leave

Active Super has announced it will offer superannuation for employees on parental leave in a move to address the gender super gap.

It would pay the primary caregiver employee the equivalent of the superannuation guarantee (SG) of their salary for up to 12 months while on paid or unpaid parental leave.

The fund would also extend paid parental leave by 50% from 12 weeks to 18 weeks within the first year of the child’s birth.

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Secondary caregivers, regardless of gender, would be entitled to four weeks parental leave, increased from one week, at full pay as well as the SG.

Phil Stockwell, Active Super chief executive, said: “Paying employees super while on parental leave, whether paid or unpaid, along with extending paid parental leave to 18 weeks, are important initiatives to help reduce the gender gap in superannuation and enable women to have a comfortable retirement.

“In many Australian households, women are more likely to be the primary carers. These initiatives go some way to addressing the gender imbalance when it comes to women and their super. Just because women take time off to have a baby doesn’t mean they should be penalised when it comes to receiving super and securing a better financial future.”

The lack of superannuation during paid parental leave has been cited as one of the factors contributing to the gender super gap as women lost out on superannuation while taking time off to care for children.

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