Paid Parental Leave

Q: Can you please advise me the pay structure for paid parental leave?

We have a policy that we will top up parental leave can you confirm if we then become a secondary income and that the employee will need to complete a new tax form. Will we receive notification of these payments and what is the pay cycle of them (we currently pay monthly).


A: Any top-up by the employer is an agreed term; there is no pay structure set in legislation as such.

The use of a secondary tax code would be required if the parental leave payment has become the main payment, and the top-up is an additional payment.  But that is not a payroll role.  It is up to the employee, based on their financial position, to use a secondary tax code (Payroll is not a tax advisor).

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