Active Super Employees to Receive Superannuation on Parental Leave 

Sydney, 26 April 2022

Active Super is doing its part to address the gender gap in superannuation balances by now paying the primary caregiver employee the equivalent of the superannuation guarantee charge (SGC) for up to 12 months of their parental leave.

Active Super will also extend paid parental leave, regardless of gender, by 50 percent from 12 weeks to 18 weeks within the first 12 months after the child’s birth.

Under the initiative, Active Super’s eligible employees will receive the equivalent of the SGC of their salary while the primary caregiver is on paid or unpaid parental leave, up to a maximum of 12 months. 

“Paying employees super while on parental leave, whether paid or unpaid, along with extending paid parental leave to 18 weeks, are important initiatives to help reduce the gender gap in superannuation and enable women to have a comfortable retirement,” said Phil Stockwell, Active Super Chief Executive Officer.

“In many Australian households, women are more likely to be the primary carers. These initiatives go some way to addressing the gender imbalance when it comes to women and their super. Just because women take time off to have a baby doesn’t mean they should be penalised when it comes to receiving super and securing a better financial future. 

“The Association of Superannuation Funds of Australia (ASFA) has said that on average, women retire with around 23 percent less super than men. By tackling this pressing issue today, we are hopeful that we can contribute to making the superannuation system more equitable and provide better retirement outcomes for everyone,” Mr Stockwell said.

In another move, secondary caregivers at Active Super, regardless of gender, will be entitled to four weeks’ parental leave, up from one week, at full pay as well as the SGC equivalent. 

Research by Industry Super Australia found that 68 percent of Australians mistakenly believe that super is paid on top of parental leave.

Example: A 30-year-old earning $60,000 per annum receiving the 10.5 percent SGC (from 1 July 2022) could have an extra $50,000 sitting in their super benefit at the time of retirement.* 


*Assumes an estimated 6 percent net rate of return compounded over 30 years with no additional contributions. (Moneysmart compound interest calculator.)