Westpac will pay superannuation to employees taking unpaid parental leave for one year in the first big corporate parental leave reforms announced since the Government passed its parental leave scheme that will provide 18 weeks of payments at the minimum wage.
The Government has urged employers to provide their own schemes on top of the payments. Westpac’s decision to add a further 39 weeks of super on top of its 13 weeks of super contributions and full pay, will come alongside the Government scheme.
“This initiative is another step Westpac has taken to create a work environment where we support diversity, in this case particularly for our women employees,” chief executive Gail Kelly said in a statement.
“By proactively paying these additional superannuation contributions, we will help make a difference to our employees’ retirement savings and continue to retain the very best talent in this organisation. Ensuring all Australian women and men are financially prepared for retirement is one of the most important challenges facing our community.”
Additionally, the bank said it will eliminate admin fees for BT Super for Life holders during their parental leave period.
Families minister Jenny Macklin welcomed the decision. The Government has previously stated it wants private companies to provide entitlements on top of the official scheme, and has discouraged businesses from relying on Government payments alone.
“Westpac clearly recognises the value of family friendly working conditions for attracting and retaining their staff,” she told AAP. She also said the announcement has set the benchmark for the financial sector.
Westpac expects over 1,000 employees across its groups will benefit from the scheme this year.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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