NRMA provides superannuation boost for unpaid parental leave
Today’s announcement will see the superannuation payment for employees on unpaid parental leave increase by an average of $5,600, based on last year’s parental leave figures across the business.
Women in Australia retiring between 60 to 64 years old will end their careers with a median superannuation payout of almost $60,000 less than their male counterparts. The NRMA’s policy seeks to help close that gap for its employees.
The NRMA’s updated parental leave policy will continue to offer primary carers 18 weeks of paid parental leave and 36 weeks of unpaid parental leave. The NRMA will continue to make regular super contributions for parents throughout the unpaid parental leave and as staff return to work.
The announcement comes as NRMA updates a raft of policies to better support staff, including flexible and hybrid working, the introduction of domestic and family violence policies and carers policy. In 2020 the organisation received the Employer of Choice Gender Equality accreditation.
NRMA Group CEO Rohan Lund said the superannuation gap between men and women must close and female employees should not be punished for having a family.
“While the NRMA has worked hard to close the gender gap in income, we know the gap between genders at retirement must also be addressed,” Mr Lund said.
“The unpaid portion of parental leave and the fact many parents return to work part-time as they balance work and family commitments has a devastating impact on the growth of super funds.
“While more fathers are choosing to take parental leave the overwhelming majority continues to be women and this affects their superannuation. The NRMA is addressing this as part of our commitment to closing the gender pay gap within our business, improving retirement outcomes and supporting all staff, regardless of gender, choosing to take unpaid parental leave.”
The NRMA’s superannuation policy for unpaid parental leave commenced on 1 January 2023. The organisation is listed as one of the Australian Financial Review’s Best Place to Work ¬and achieved certification as one of the first 70 Family Friendly Workplaces in Australia in 2022.
“We are proud to be able to continue to support our staff while on parental leave and as they make the return to work,” Mr Lund said.
“As the amount of superannuation needed for a comfortable retirement continues to rise, it is more important than ever we make sure choosing to spend vital time with new family members with isn’t at the cost of a comfortable retirement.”
