TelstraSuper has announced it will boost superannuation payments for its employees who take on part-time roles after returning from parental leave.
These employees will receive full-time super contributions for a period of two years, regardless of the hours they work, the company has said.
Modelling done by the superannuation fund shows an extra two years of full-time super contributions for a 32-year-old employee working three days a week in a part-time role, could be worth almost $42,000 at retirement.
The policy has been introduced to help close the ‘gender super gap’ which exists between men and women. According to a report from KPMG, in the years approaching retirement, the gender super gap can be anywhere between 22 and 35 per cent.
TelstraSuper CEO Chris Davies said the new program is aimed at improving the financial security for those who returned from parental leave and work part-time.
“TelstraSuper recognises the need for more government measures to help close the super gender gap, so as an employer we wanted to explore how we might improve the retirement outcomes for our own employees,” Davies said.
“This is an important equity measure that will make a real difference to all employees who take parental leave and would otherwise receive less super if they returned to work in a part-time role.”
The superannuation fund already pays superannuation on paid and unpaid parental leave and allows its employees 16 weeks of paid parental leave, without ‘primary’ or ‘secondary’ caregiver labels.
“While there is no silver bullet to closing the super gender gap, it’s important that employers recognise the role they can play in helping improve retirement outcomes for women,” Davies said.
On Tuesday, it was revealed by the Workplace Gender Equality Agency that TelstraSuper had a total remuneration gender pay gap of 12 per cent. That figure comes in much lower than the financial and insurance services industry median remuneration gender pay gap of 26.1 per cent.