What Changed on 1 July 2025
For the first time, the government will pay 12% superannuation on government-funded Paid Parental Leave payments. This is a major change that addresses the super gap for parents — particularly mothers — who take time out of the workforce.
How Much Extra Super
PPL is paid at the national minimum wage rate. At the current rate, the super contribution will be approximately:
| PPL Weeks | PPL Payment (approx) | Super (12%) |
|---|---|---|
| 20 weeks | $18,760 | $2,251 |
| 22 weeks (from 1 Jul 2025) | $20,636 | $2,476 |
| 26 weeks (from 1 Jul 2026) | $24,388 | $2,927 |
Why This Matters
Women retire with about 25% less super than men on average, largely because of career breaks for caring responsibilities. The super gap on just 6 months of PPL might seem small — but compounded over 30 years, $2,500 in missed super becomes $10,000+ in lost retirement savings.
Employer-Funded Parental Leave
If your employer offers paid parental leave above the government scheme, they should already be paying super on those payments. Check with your employer — some only pay super on the government-mandated period.
Frequently Asked Questions
When does super on PPL start?
1 July 2025. It applies to PPL claims made from this date onwards.
Do I need to do anything?
No. The super will be paid automatically to the super fund linked to your tax file number. Make sure your super fund details are up to date with the ATO.
Does my employer also pay super on PPL?
Your employer pays super on any parental leave they fund directly. The government's 12% is on top of the government-funded PPL payments only.