Paid Parental Leave and Super: What Employers Need to Know in 2026

Last reviewed: October 2026.

What is Paid Parental Leave?

Paid Parental Leave is the Australian Government's scheme under the Paid Parental Leave Act 2010. Eligible parents receive Parental Leave Pay after the birth or adoption of a child, and Services Australia decides who is eligible. Many employers have a role in paying it: if your employee meets the conditions, you pay Paid Parental Leave through your payroll using Government funding.

Paid Parental Leave is a payment, not a right to time off. The right to take leave and return to work comes from the National Employment Standards: see our guide to unpaid parental leave. Most employees use both together.

Rates current from 1 July 2026.

• How long: up to 26 weeks (130 payable days) for a child born or adopted on or after 1 July 2026. It was 22 weeks for births from 1 July 2024 and 24 weeks for births from 1 July 2025.
• How much: paid at the national minimum wage, currently $1,004.90 a week before tax.
• Family entitlement: where the claimant has a partner, one parent can claim up to 110 of the 130 days, so 20 days are reserved for the other parent, and parents can take up to 20 days at the same time. Single parents can claim the full 130 days.
• Flexible timing: days can be taken in blocks or single days within 2 years of the birth or adoption.
• Super: for a child born or adopted on or after 1 July 2025, the Government pays a super contribution on Parental Leave Pay (see below).

Dad and Partner Pay no longer exists as a separate payment. It was merged into Parental Leave Pay from 1 July 2023.

Who is eligible for Parental Leave Pay?

Services Australia assesses eligibility, not the employer. In broad terms, the parent must:

• be caring for the child on the days they claim, and do no more than one hour of paid work on those days
• meet the work test: have worked for at least 10 of the 13 months before the birth or adoption, and at least 330 hours in that 10-month period (about one day a week), with no gap of more than 12 weeks between working days
• meet the income test and the residency rules

Casual, part-time, fixed-term and self-employed people can all be eligible. Because eligibility depends on the parent's whole work history, refer employees to Services Australia rather than telling them whether they qualify.

Paid Parental Leave employer obligations

You must pay Parental Leave Pay to your employee through payroll if Services Australia makes an employer determination. It does this when the employee (Paid Parental Leave Act s 101):

• has worked for you for at least 12 months before the expected date of birth or adoption
• is likely to receive at least 8 weeks (40 consecutive weekdays) of Parental Leave Pay from you
• is an Australian-based employee, and your business has an ABN

Once you are notified, you have specific obligations:

1. Respond within 14 days. Accept the obligation and give your bank account and pay cycle details, or apply for a review (s 103).
2. Receive the funding. Services Australia pays the money to you in advance. You don't fund Parental Leave Pay yourself.
3. Pay in your usual pay cycle. Pay each instalment on the employee's normal payday once the funding has arrived (ss 64 and 72).
4. Withhold tax. Parental Leave Pay is taxable, so withhold PAYG tax as you would from wages (s 68). Make no other deductions unless the employee has authorised them in writing for their own benefit, such as salary sacrifice (ss 67 and 70).
5. Give a record of payment. Provide pay information, like a pay slip, by the end of the next working day (s 80).
6. Keep records for 7 years (s 81).
7. Tell Services Australia about changes, such as the employee leaving your business, doing more than one hour of paid work for you during their Paid Parental Leave period, or changes to your bank account or pay cycle (s 82).

These are civil penalty provisions, and Services Australia can refer non-compliance to the Fair Work Ombudsman. You can also choose to pay Parental Leave Pay to employees who don't meet the 12-month or 8-week conditions, if the employee agrees, by making an election with Services Australia (s 109).

Super on Paid Parental Leave

The Government now pays super on Paid Parental Leave for a child born or adopted on or after 1 July 2025. The ATO calculates a Paid Parental Leave superannuation contribution at the super guarantee rate (12%) of the Parental Leave Pay received, plus an amount for interest, and pays it into the parent's super fund after the end of the financial year (Paid Parental Leave Act Chapter 3A).

Do employers pay super on Paid Parental Leave? No. Payments for a period of parental leave are not qualifying earnings, so the super guarantee doesn't apply to Government Parental Leave Pay, even when you pay it through payroll (Superannuation Guarantee (Administration) Regulations 2018 reg 12(1)(a)). The same rule means you don't have to pay super guarantee on employer-funded parental leave either, unless an award, enterprise agreement, contract or your own policy says you will.

Super is still payable on other paid time during parental leave. If the employee takes paid annual leave or long service leave, or is paid for keeping in touch days, pay super on those amounts in the usual way. Under Payday Super, that contribution is due with the pay run and must reach the fund within 7 business days.

Employer-funded paid parental leave

The law does not require employers to provide their own paid parental leave, but many do because it helps attract and keep good people. If you offer it, put a written policy in place that covers:

• who is eligible (for example, length of service, and whether casuals are included)
• how many weeks are paid, at what rate, and whether you will pay super on it
• whether it can be taken before, after or at the same time as Government Parental Leave Pay (employees can generally receive both)
• how it interacts with unpaid parental leave, keeping in touch days and a return to work

Since the Fair Work Amendment (Baby Priya's) Act 2025, employers generally can't refuse or cancel employer-funded paid parental leave because a child is stillborn or dies, unless a narrow exception applies (Fair Work Act s 333X). Review your policy to make sure it is consistent.

Example: paying Paid Parental Leave through payroll

Jess has worked full-time at a dental practice for three years, and her baby is due in November 2026. She claims Parental Leave Pay and nominates the practice as her employer. Services Australia sends the practice a notice of employer determination, and the practice manager accepts it within 14 days, providing the bank account and fortnightly pay cycle details. Funding arrives before each payday, and the practice pays Jess at the national minimum wage, withholds tax and gives her a pay slip. It does not pay super guarantee on the Parental Leave Pay; the ATO pays Jess's PPL super contribution after 30 June 2027. When Jess does two keeping in touch days, the practice pays her normal wage plus super for those days.

Paid Parental Leave checklist for employers

1. Explain to the employee how Government Parental Leave Pay, any employer-funded leave and unpaid parental leave fit together.
2. Watch for a notice of employer determination and respond within 14 days.
3. Set up Parental Leave Pay as a separate pay item with tax withheld and no super guarantee.
4. Pay on the usual payday once funding arrives, and issue a pay record by the next working day.
5. Notify Services Australia promptly of any change, including the employee returning to work or leaving.
6. Keep Parental Leave Pay records for 7 years.

Parental leave rules have changed every year since 2023. Our HR advice line can help you check your policy and payroll set-up before your employee's leave starts.

Need help with your situation? Call our 24/7 HR advice line on 1300 144 002 for free initial advice.

Paid Parental Leave: frequently asked questions

Do employers have to pay Paid Parental Leave?

Employers don't fund Government Parental Leave Pay, but you must pass it on through your payroll if Services Australia makes an employer determination for your employee. Employer-funded paid parental leave is optional unless an award, agreement or contract requires it.

How many weeks of Paid Parental Leave can parents get in 2026?

Up to 26 weeks (130 days) for a child born or adopted on or after 1 July 2026. Partnered parents share the 130 days: one parent can claim up to 110 days, and 20 days are reserved for the other parent.

Do I pay super on Paid Parental Leave?

No. The super guarantee doesn't apply to Parental Leave Pay. For children born or adopted from 1 July 2025, the Government pays a super contribution at 12% through the ATO after the end of the financial year.

Is Paid Parental Leave taxed?

Yes. Parental Leave Pay is taxable income, and you withhold PAYG tax when you pay it through payroll.

Can a casual employee get Paid Parental Leave?

Yes, if they meet the Services Australia work test, income test and other rules. Whether you pay it through payroll depends on the 12-month and 8-week conditions.

What if my employee resigns during their Paid Parental Leave?

Tell Services Australia as soon as you know. It will arrange for any remaining Parental Leave Pay to be paid.