Unpaid parental leave to gain super at WBC
(1 July 2010 – Australian) Westpac has announced that it will pay superannuation on unpaid parental leave for all permanent employees, an Australian private sector first.
Under the new initiative, Westpac will pay up to 39 weeks in employee superannuation contributions in addition to its existing parental leave entitlements of 13 weeks superannuation and 13 weeks full pay.
Westpac Chief Executive Gail Kelly said she is very pleased to be announcing a ground-breaking initiative for employees which would continue to maintain Westpac’s market-leading position on diversity.
This initiative is another step Westpac has taken to create a work environment where it supports diversity, in this case particularly for its female employees, Mrs Kelly said.
By proactively paying these additional superannuation contributions, Westpac will help make a difference to its employees’ retirement savings and continue to retain the very best talent in this organisation, Mrs Kelly added.
Ensuring all Australian women and men are financially prepared for retirement is one of the most important challenges facing the community, Mrs Kelly highlighted.
Mrs Kelly said Westpac would also extend its support to customers by waiving administration fees for its BT Super for Life account holders for the duration of their parental leave.
Mrs Kelly added that industry research on the impact on superannuation savings, from taking time out of the workforce, supported Westpac’s decision.
Recent research by independent industry consultants RICEwarner2 shows that a woman with an average career break of five years can expect to save approximately 26 percent less in superannuation income than other women who remain in the workforce throughout their careers.
Over a thousand employees from across Westpac, St George, BT and Rams will benefit from this new initiative each year. Approximately 1750 employees across the Group took unpaid parental leave in the last financial year.
Westpac Chief Executive Gail Kelly said she is very pleased to be announcing a ground-breaking initiative for employees which would continue to maintain Westpac’s market-leading position on diversity.
This initiative is another step Westpac has taken to create a work environment where it supports diversity, in this case particularly for its female employees, Mrs Kelly said.
By proactively paying these additional superannuation contributions, Westpac will help make a difference to its employees’ retirement savings and continue to retain the very best talent in this organisation, Mrs Kelly added.
Ensuring all Australian women and men are financially prepared for retirement is one of the most important challenges facing the community, Mrs Kelly highlighted.
Mrs Kelly said Westpac would also extend its support to customers by waiving administration fees for its BT Super for Life account holders for the duration of their parental leave.
Mrs Kelly added that industry research on the impact on superannuation savings, from taking time out of the workforce, supported Westpac’s decision.
Recent research by independent industry consultants RICEwarner2 shows that a woman with an average career break of five years can expect to save approximately 26 percent less in superannuation income than other women who remain in the workforce throughout their careers.
Over a thousand employees from across Westpac, St George, BT and Rams will benefit from this new initiative each year. Approximately 1750 employees across the Group took unpaid parental leave in the last financial year.
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