The Victorian government has been in talks regarding superannuation payments for employees – women and men alike – who take time off for parental leave.
The Age reported that the government wants to raise super by at least 15%, due to many complaints including lack of payment during parental leave. A lot of these proposals come as the result of an issue known as the 'super gap.' This is the large difference in super that men and women retire with: Male super outweighs what women receive by $110,000.
The government is hoping to fix this gap, while also working on getting rid of additional fees placed upon workers who are on parental leave – which most super funds charge, according to The Age. These fees also apply to people who have taken time off work to care for a loved one.
Another proposal stemming from the Victorian government would involve combining super accounts for all couples, along with changing various discriminatory laws , which would be significant steps toward closing the 'super gap.' Changes to the law would allow for employers to pay women in the workplace a higher rate of super than their male employees, which could help make payments more equal.
Public servants decline offer from Victorian government
In terms of public servants who work directly for the government, measures are being taken to make super payments more equal, although no deals have been finalised yet. The Victorian government has settled on paying up to 50,000 of its employees their full super payment while on parental leave, as reported by the Brisbane Times. Although this is a step in the right direction, the workers declined the offer from the government – which would've provided them with one-off individual payments of $500. To be eligible for such funds, these public servants would have to drop many of their requests in the feud.
Between the lack of super payments for workers on parental leave and the fees that they are required to pay while out of work, many employed parents are finding it more difficult to take time off to take care of their children or even get back on their feet after giving birth.
If you have been involved in unjust superannuation disputes, Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers are here to help. Contact us today.