Westpac's super parental leave precedent
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Westpac has established a precedent which is likely to see it used as a model for other employers in the financial services sector by opting to pay superannuation on unpaid parental leave for all permanent employees.
The banking group said the practice would become effective from 1 July, and that under the initiative it would pay up to 39 weeks in employee superannuation contributions in addition to its existing parental leave entitlements of 13 weeks superannuation and 13 weeks full pay.
It said eligible employees would receive superannuation contributions of 9 per cent of their base salary paid as a lump sum amount.
Confirming the move today, Westpac chief executive Gail Kelly said that by proactively paying the additional super contributions the bank would help make a difference to its employees’ retirement savings.
She said the company would also extend its support to customers by waiving administration fees for its BT Super for Life account holders for the duration of their parental leave.
AUTHOR
Mike Taylor
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