Australia Considers Paying Pensions on Parental Leave Program
Australia could chip into the pension funds of eligible workers who take up its 18 weeks of paid parental leave, just not yet, amid criticism the government isn’t doing enough to ensure women are financially secure in retirement.
The policy was changed last year to also pay fathers to take time out of the workforce to help raise kids, however it hasn’t yet had time to “manifest,” Jane Hume, minister for superannuation and newly-installed minister for women’s economic security, told Bloomberg TV Friday.
“We’d like to see the outcomes of that policy and see how it’s been implemented and how it’s been working before we make any further changes,” said Hume. “But look, it’s certainly not off the table.”
Australia’s government on Tuesday outlined a series of reforms to narrow the gender pension gap, including removing the A$450 ($348) per month threshold before employers pay 9.5% of the monthly salary into their pension fund. The threshold meant many low paid and casual workers missed out, disproportionately impacting women who work multiple part time roles while raising children.
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