NRMA Group to pay employees super on unpaid portion of parental leave

A major employer has announced a plan that could leave its employees thousands of dollars better off.

Employees at a major company could find themselves thousands of dollars better off after a significant change in their super policy.

The NRMA announced on Wednesday that the company would pay their employees super on the unpaid portion of parental leave, which sits at 36 weeks under their updated policy.

The move, which the member-owned company said was part of its commitment to reduce the gender pay gap, could increase super payments by as much as $5600 for employees on unpaid parental leave, the company said, based on last year’s figures.

The NRMA will pay employees super on the unpaid portion of their parental leave in what is expected to be a massive boost for women. Picture: iStock

The NRMA said women who retired between 60 and 64 would end up with a median super of $60,000 less than men – a disparity the company was hoping address.

The NRMA chief executive Rohan Lund said 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.

NRMA chief executive Rohan Lund said women should not be punished for having a family. Picture / Monique Harmer

“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,” he said.

Mr Lund said while more fathers were taking parental leave, the overwhelming majority continued to be women.

“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.”

According to the Australian Human Rights Commission, the average super payout for women is a third of the payout for men – $37,000 compared with $110,000.