As you take time out of the workforce during this exciting stage of your life, our union is here to support you along your journey.
Any period of paid parental leave in considered “service” which means your superannuation, long service leave and all other employee entitlements continue to accrue while you’re on such leave.
However, unless you work in an NT Catholic school, super will not be paid during unpaid parental leave (something our union is fighting to change in other employment sectors).
If you take annual leave or long service leave while on parental leave, your payments will include super.
Superannuation funds will vary but most will require written notification from your employer that you will be taking paid parental leave.
Our union recommends members contact their super fund before going on leave to ensure that arrangements are in place for your super while you are on leave.
Find out more about all aspects of parental leave by accessing our member resource Your Guide to Parental Leave.
Women face super gap
Did you know women currently retire with 47% less super than men, on average.
Sadly, 40% of single retired women experience economic insecurity.
Bridging the super gap
Much of the super gap can be attributed to women taking time out of the workforce due to caring responsibilities, being more likely to work part-time and earning less than their male counterparts.
So, what can you do to minimise the gap?
Co-contribute when you can
IEU-QNT members have won the option to co-contribute to super in most employment sectors.
That means your employer pays additional super if you also contribute a small percentage of your salary to super.
If you co-contribute 5% to super over 10 years, this could make a $47,497 difference to your retirement balance*.
To find out more about super co-contribution, contact our union or visit the members’ section of our website.
You might consider seeking independent financial advice to discuss how to maximise your super during and after parental leave.
IEU-QNT is not a financial advisor.
Discounted or free advice may be available through your super fund.
Members can access and download a copy of our union’s comprehensive booklet Your Guide to Parental Leave.
*This co-contribution comparison is based on a number of assumptions including: Balance at start is $0; Retirement is at age 65; Rate of return is 5.52% pa; Balances are in ‘future value’ terms; Base salary is $60,000 indexed at 1% pa; Superannuation earnings are taxed at 15% pa; Contributions are based on a percentage of base salary; Concessional contributions are subject to a 15% contributions tax; No changes to the Superannuation Guarantee (SG) have been included.
Source: QIEC Super (Division of NGS Super)