Table of content
- What is the Parental Leave Pay Scheme?
- Key Changes to Parental Leave in 2025
- How Much Parental Leave Pay Can You Get?
- Who is Eligible for Parental Leave Pay?
- Beyond Government PPL: Understanding Employer & Fair Work Entitlements
- Simplify Your Leave with Workstem’s Payroll Solutions
- Plan Your Parental Leave with Confidence
- Workstem: Simplifying Parental Leave Management!
Becoming a parent is an exciting journey, but understanding your financial entitlements shouldn’t be a challenge. With significant changes to the Australian Government’s Paid Parental Leave (PPL) scheme, knowing what to expect is more important than ever.
This guide breaks down the key updates for 2025 and introduces a simple way to estimate your payments, helping you plan confidently for your new arrival.
What is the Parental Leave Pay Scheme?
The Australian Government’s Parental Leave Pay scheme provides eligible working parents with a payment to take time off to care for a newborn or newly adopted child. It is a taxable payment paid at the National Minimum Wage, designed to support families during this important time.
Key Changes to Parental Leave in 2025
The scheme is undergoing a major expansion. Here’s what you need to know for 2025:
- Increased Leave Duration: The entitlement is steadily increasing to reach 26 weeks. For claims for a child born or adopted on or after 1 July 2024, the entitlement is 24 weeks. This is a significant increase from the previous 18 weeks, giving families more valuable time together.
- Introduction of Superannuation: A landmark change is the addition of superannuation contributions. From 1 July 2025, the government will pay superannuation on Parental Leave Pay. This is a crucial step towards closing the retirement savings gap for primary carers, who are often women.
How Much Parental Leave Pay Can You Get?
For the 2024-2025 financial year, Parental Leave Pay is paid at the national minimum wage, which is $915.90 per week (before tax).
- Total Estimated Entitlement (24 weeks): 24 x $915.90 = $21,981.60
This total amount is paid to you over your chosen leave period. It’s important to remember that this is a taxable income, so the actual amount you receive in your bank account will be less after tax withholdings.
Who is Eligible for Parental Leave Pay?
To be eligible, you must meet several criteria, including:
- Be the primary carer of a newborn or newly adopted child.
- Have an individual adjusted taxable income of $168,865 or less in the financial year before the birth or adoption.
- Meet Australian residency requirements.
- Have worked at least 330 hours in 10 of the 13 months before the birth or adoption.
For the most detailed and up-to-date information, always refer to the official Services Australia website.
Beyond Government PPL: Understanding Employer & Fair Work Entitlements
Your parental leave journey may involve more than just the government payment.
- Employer-Paid Parental Leave: Many employers offer their own paid parental leave schemes, which can be more generous than the government payment. This is often in addition to the government PPL.
- Fair Work Entitlements: Under the National Employment Standards (NES), eligible employees are entitled to up to 12 months of unpaid parental leave, and can request an additional 12 months. This job-protected leave ensures you have a role to return to.
It’s essential to check your specific award, agreement, and company policy to understand your full entitlements. The Fair Work Ombudsman is a valuable resource.
Simplify Your Leave with Workstem’s Payroll Solutions
Managing parental leave payments, tax, and superannuation can be complex for both employees and employers. Workstem’s automated payroll platform simplifies this process by:
- Accurate PPL Calculations: Ensuring government payments and top-ups are processed correctly.
- Automated Super Streamlining: Seamlessly handling the new superannuation contributions on PPL from July 2025.
- Centralised Leave Management: Tracking all leave types, including parental leave, in one integrated system.
By automating these complex calculations, Workstem helps ensure compliance, saves time, and gives both employers and employees peace of mind.
Plan Your Parental Leave with Confidence
The expanded Parental Leave scheme in 2025, including 24 weeks of pay and the new super guarantee, provides vital support for Australian families. Use the figures in this article as a guide, confirm your eligibility with Services Australia, and consult with your employer about their specific policies.
With the right tools and knowledge, you can focus on what matters most—welcoming your new child.
Workstem: Simplifying Parental Leave Management!
Streamline your leave request submission and approval process, reduce administrative burden, and cut costs with Workstem’s leave management feature. Our platform offers default leave types such as parental leave, annual leave, parental leave, jury duty leave, and long service leave, and allows for additional special leaves as needed.
Stay up-to-date with auto-updates for public holidays and let Workstem handle the calculations for leave balances, entitlements, and leave accrual. Our seamless integration with payroll ensures accurate payment of leave entitlements and proper tax treatment.
Ready to experience the benefits of Workstem?
FAQ: Navigating the 2025 PPL Changes
Q1: How long is paid parental leave in Australia in 2025?
A1:From July 1, 2025, the total entitlement will be 24 weeks for eligible families.
Q2: If my employee has already applied for PPL for a birth due after July 2025, are they eligible for the extra 4 weeks?
A2:Yes. The new rules apply based on the date of birth or adoption. If the child arrives on or after July 1, 2025, the employee will be eligible for the full 24 weeks, even if they applied earlier.
Q3: What are the PPL eligibility requirements from July 2025?
A3:While the government will confirm final details, eligibility is generally based on:
- Meeting an income test (individual adjusted taxable income ≤ $168,865 for 2024-25).
- Satisfying the Australian residency test.
- Being the primary carer of the newborn or adopted child.
- Meeting the work test.
Q4: How can Workstem help manage these changes?
A4:Workstem’s automated payroll platform is designed to adapt to legislative changes. It can:
- Accurately calculate superannuation on PPL payments.
- Manage the seamless integration of government payments and employer top-ups.
- Track leave balances for the flexible 24-week period.
- Ensure full compliance with Single Touch Payroll (STP) reporting requirements.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
Read More:
Parental Leave in Australia: A Comprehensive Guide
Is Your Leave Management System Compliant with Fair Work?
Discover the Benefits of Leave Management Software: Say Goodbye to Excel!