Skip links and keyboard navigation

Pay, benefits and policy

Paid super on (paid and unpaid) parental leave

Status:
Current
Effective:
1 July 2024-current
Responsible agency:
Queensland Treasury

Summary

Read this policy to understand eligibility, entitlements and conditions for superannuation during parental leave.

1. Purpose

To prescribe the entitlement for eligible public sector and government owned corporations (GOCs) employees, including public sector employees in public sector entities, employees of the Queensland Police Service, and the Queensland Parliamentary Service to payment of superannuation during the parental leave period up to a maximum of 52 weeks, whether an employee accesses paid, unpaid or a combination of both during this period.

2. Effective date

1 July 2024

3. Legislative authority

It should be noted that due to the short lead time for introduction of this change, the required regulation amendments will not be in place as at July 2024.

The transitional plan will be for changes to be drafted and retrospectively applied. It is expected (at a minimum) the following will need to be reviewed and updated:

  • Superannuation (State Public Sector) Regulation 2023
  • Superannuation (State Public Sector) Notice 2021
  • Section 29 Notice for Defined Benefit members.

4. Application

This policy applies to:

  • Public sector employees in public sector entities
  • Employees of the Queensland Police Service
  • Employees of the Queensland Parliamentary Service
  • Employees of GOCs, Queensland Rail, Seqwater and subsidiaries of these organisations

Please note the policy is based on and described from hereon with reference to Queensland’s industrial relations legislation (e.g. the Industrial Relations Act 2016). The intent is for application to be mirrored by employers in the federal jurisdiction (e.g. GOCs, Queensland Rail and Seqwater) as far as practicable having regard to their binding industrial and other instruments.

5. Previous references

Not applicable

6. Related information

7. Eligibility

7.1. Employee must be eligible for up to 52 weeks of parental leave under the IR Act

Eligible employees are those who are entitled to access unpaid parental leave of up to 52 weeks as provided
for in the Industrial Relations Act 2016 (IR Act) for the following types of unpaid parental leave:

  • Section 57 – Definitions (long parental leave means—(a) long birth-related leave; or (b) long adoption leave; or (c) long surrogacy leave; or (d) long cultural parent leave).
  • Section 59 – Entitlement to birth-related leave (includes spousal leave)
  • Section 60 – Entitlement to adoption leave
  • Section 61 – Entitlement to surrogacy leave
  • Section 61A – Entitlement to cultural parent leave.

8. Definitions

Except where otherwise defined, terms in this policy document are consistent with their meanings in the
Industrial Relations Act 2016, Superannuation (State Public Sector) Act 1990, Superannuation (State Public
Sector) Notice 2021 and Superannuation (State Public Sector) Regulation 2023.

For the purpose of this policy:

  • Australian Government Paid Parental Leave (PPL) scheme refers to the Australian Government’s
    scheme (via Services Australia) that provides parental leave pay, being a payment (or series of payments)
    to help families taking time off work to care for a newborn or newly adopted child.
  • Half-pay refers to 50 per cent of full pay (being the full pay the employee would receive on their FTE
    proportional basis) and applies to those employees who extend their paid parental leave on a half-pay
    basis.
  • Paid parental leave refers to any of the paid leave type(s) provided by the employer specifically to be
    accessed during the 52-week protected absence period.
  • Parental Leave means long parental leave as defined in the IR Act.
  • Parental Leave pay rate means the rate of pay the employee is paid for parental leave, noting the same
    rate of pay for superannuation calculations is to apply regardless of whether an employee is on paid or
    unpaid parental leave.
  • Unpaid parental leave is any period during the 52-week protected absence period not covered by paid
    leave types from the employer that automatically attract superannuation payments.

9. Entitlement

9.1 Superannuation to be paid during parental leave for the first 52 weeks of parental leave

9.1.1 Superannuation contributions will be paid for employees for all periods of parental leave the employee is entitled to take under the IR Act, whether paid or unpaid, including other forms of paid leave taken during any unpaid parental leave period, except for any period subject to an application for extension of parental leave beyond 52 weeks under section 73 of the IR Act.

9.1.2 If an employee returns to work (other than as permitted by section 80 or section 81 of the IR Act, e.g. keeping in touch day or an interruption of parental leave agreement) there is no further requirement to pay superannuation on parental leave, or other unpaid leave. Returning to work ends the parental leave period.

9.1.3 When the 52 week period ends there is no further requirement to pay superannuation on parental leave, or other unpaid leave. After the 52 weeks the employee’s superannuation entitlements revert to their usual arrangements.

9.1.4 Superannuation payments will be paid within one month following the regular payroll cycle (for instance, if payroll is fortnightly the superannuation is to be paid no later than one month following that).

9.1.5 Superannuation payments on paid parental leave are to be paid as per the Superannuation (State Public Sector) Regulation 2023.

9.1.6 Superannuation payments on unpaid parental leave are to be paid into an accumulation account.

9.1.7 Please note: The Australian Government has announced that effective from 1 July 2025 they will commence paying superannuation on the Australian Government PPL scheme. On implementation of this scheme the Queensland Government will work towards the objective of ensuring the two schemes effectively complement each other.

9.2. Entitlement if parental leave taken at half-pay

Should the employee elect to take any paid parental leave at half-pay during the unpaid parental leave period, the superannuation contributions will be made during the half-pay period as if the leave was taken at full pay.

  • Leave taken at half-pay during parental leave is considered 50% paid parental leave and 50% unpaid parental leave.
  • For example, if an employee is eligible for 14 weeks paid leave and they elect to extend the 14 weeks of paid parental leave to 28 weeks of paid parental leave at half-pay, during this time:
    • Parental leave pay rate is paid at 50% (half) rate; and
    • Superannuation is effectively doubled to ensure it is paid at the same rate as if leave taken at full pay.
  • If the employee is only eligible for a proportion of the 14 weeks paid parental leave, the same application will apply.
  • If an employee is on a part-time basis, taking half-pay will be half of the full pay they get on their proportional FTE basis.

9.3. Entitlement if other leave taken at half-pay during parental leave period

Should the employee elect to take any other form of paid leave at half-pay during their unpaid parental leave period, the superannuation contributions will be made during the half-pay period as if the leave was taken at full pay.

  • Leave taken at half-pay during unpaid parental leave is considered 50% paid leave and 50% unpaid parental leave.
  • For example, if an employee is eligible for 3 weeks of recreation leave and takes this within their parental leave period, and they elect to extend this to 6 weeks of recreation leave at half-pay, during this time their superannuation is effectively doubled as per section 9.2 to ensure it is paid during this time at the same rate as if leave taken at full pay.

10. General conditions

10.1. Superannuation rate and frequency

The rate of superannuation payments is as per Superannuation (State Public Sector) Regulation 2023.

  • This means no change / no difference to superannuation rate applied to paid leave.
  • As of 1 July 2024, the superannuation contribution rate for Queensland public service employees is 12.75%; or 14.25% for fire service officers; or 18% for police officers.

The frequency of superannuation payments is for superannuation payments to be made within one month following the regular payroll cycle

  • Wherever possible, superannuation payments will be made with the regular payroll cycle and no later than one month later.

10.2. Superannuation contribution type

The contribution type will be:

  • Concessional contribution

10.3. Defined Benefit members to have entitlement paid into accumulation account

Superannuation monies paid during unpaid parental leave are to be paid into an employee’s chosen accumulation account.

  • Please note that superannuation payments during unpaid parental leave are not to be paid into QSuper (or other) Defined Benefit accounts.

10.4. Commencement date and other conditions and entitlements regarding parental leave remain unchanged

The commencement date or other conditions for parental leave do not change due to the payment of superannuation on parental leave.

  • For example, conditions and entitlements, such as the requirement to provide notice of intention to take parental leave, remain unchanged due to the introduction of superannuation on parental leave.
  • For example, birthing parents are still entitled to commence parental leave 6 weeks prior to their expected date of confinement which is consistent with the IR Act entitlements for parental leave (and may mean some parental leave is taken pre-birth and the balance of the 52 weeks is taken post-birth).

10.5. Less than 52 weeks of Parental Leave taken

Where less than 52 weeks of parental leave is taken the unused portion of the superannuation payment cannot be banked or preserved in any way.

10.6. Promotion and/or pay rise and/or higher duties allowance while on Parental Leave

Rights to promotions and/or pay rises and/or higher duties payments while on parental leave do not change due to the payment of superannuation on parental leave.

  • Entitlements to pay rises etc continue to apply as per current conditions under the IR Act, Paid Parental Leave directive, Higher Duties directive etc.
  • Consistent with the entitlement to payment higher duties amounts under the Higher Duties directive, for those who are covered by the directive, if an employee takes parental leave, they are entitled to have their superannuation calculated for the full period of such leave at the higher duties amount being paid to the employee immediately before the employee takes the leave. This will be the case even where the higher duties arrangement ceases on the last day of duty prior to the leave commencing, or at any point during the leave period.

10.7. Leave loadings while on Parental leave

Rights to leave loadings while on parental leave do not change due to the payment of superannuation on parental leave.

10.8. Employees who do not return to work

Not returning to work does not impact payment of superannuation on parental leave (paid or unpaid). The requirement to pay superannuation on parental leave provided in this policy ceases when the employee’s employment formally ceases.

  • While on parental leave, all employees are still employed and remain entitled to all of their existing conditions, benefits and entitlements, including superannuation on parental leave.
  • If an employee resigns, the requirement to pay superannuation on parental leave provided in this policy ceases only when their employment formally ceases.

10.9. Complaints procedure

An employee aggrieved by the application of this policy should refer to their entity’s employee grievance policy and grievance related provisions within the relevant industrial instruments.

Last updated:
12 November 2024