Want to boost the economy? Link parental leave payments to prior earnings

parental maternity leave

Source: Unsplash/Ömürden Cengiz

Increasing the rate of paid maternity leave, so it is tied to prior earnings, rather than just increasing the time off work, could lead to better and fairer outcomes for Australian families.

It could also help the country by supporting women’s workforce participation and boosting fertility rates.

Australia currently has the lowest rate of paid maternity leave of all OECD countries except the United States, which is the only OECD country without any government-mandated paid maternity leave.

From July 1 2023, the Australian government increased the duration of paid maternity leave to 20 weeks, with an extra two weeks to be added to the scheme every year until it reaches 26 weeks.

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