Is government Paid Parental Leave a cost to the employer?

No. Government PLP is paid by Services Australia and passed through payroll to the employee. The employer is reimbursed in full. The real costs to employers are any voluntary top-up to full wage, super on those top-up weeks, payroll admin time, and backfilling the role while the employee is on leave.

Do employers have to pay super on their own parental leave top-up?

Usually yes. Most enterprise agreements and some modern awards require super to be paid on employer-funded parental leave top-up weeks. Super on government PLP weeks is paid directly by the ATO from 1 July 2025 — not by the employer. Check your EA wording.

What is the biggest cost of parental leave to a small employer?

Backfill. Replacing the employee for 6–12 months through a contractor or temp agency typically costs 20–30% more than their direct wage, and represents the single largest line item. Top-up pay and super are predictable; backfill is where most small employers get surprised.

What changes for employers on 1 July 2026 with parental leave?

Government PLP extends from 24 weeks to 26 weeks for births and adoptions from 1 July 2026, with 4 weeks reserved for the non-birth partner. Employers continue to pass through PLP via STP but now for a longer period. If your scheme tops up to full wage during PLP, you will pay top-up for 26 weeks instead of 24.

Employer Parental Leave Cost Calculator

Work out what parental leave actually costs your business. Separates out the reimbursed government PLP from the real employer costs — top-up pay, super on top-up, payroll admin, and backfill.

Last verified: 2 August 2026

Employee weekly pay (before tax)*

The pay rate of the employee going on parental leave

Employer top-up weeks

weeks

Weeks your scheme pays employer-funded parental leave

Top-up pays the gap above government PLP (concurrent)

Tick if your scheme tops up to full wage during government PLP weeks. Untick if you pay full wage as separate weeks on top of PLP.

Pay super on employer top-up weeks

Most enterprise agreements require this. Government pays super on the PLP weeks separately.

Payroll admin hours per claim

hours

STP reporting, PLP reconciliation, super pass-through (typical: 3–8 hrs)

Admin hourly rate

$/hr

Backfill weeks

weeks

How long you'll cover the role (contractor, temp, secondment)

Backfill weekly cost

$/wk

Temp agencies typically charge 20–30% above direct wage cost

PPL claims per year

claims

How many employees go on parental leave in a typical year

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

Employer Parental Leave Cost Calculator

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