How Much Paid Parental Leave Will I Get in Australia? (2025-26)
Once parents learn they may qualify for Paid Parental Leave, the next question is almost always the same:
"How much will I actually receive?"
Australia's government parental leave payment provides income while you take time off work to care for a newborn or newly adopted child. The payment is calculated the same way for every eligible parent — based on the National Minimum Wage, not your salary.
This guide explains exactly how much you can expect to receive in 2025-26, what happens after tax, and how the payment fits into the wider financial picture of the first year.
The short answer: 2025-26 rates at a glance
| Measure | 2025-26 amount |
|---|---|
| Daily rate | ~$189.62 per day |
| Weekly rate | ~$946 per week |
| Total entitlement | 120 days (24 weeks) |
| Gross total | ~$22,754 |
| Estimated net (after 15% withholding) | ~$19,341 |
These amounts are based on the National Minimum Wage for 2025-26. The exact rate is updated when minimum wages are revised — typically in July each year following the Fair Work Commission's annual wage review.
How the payment is calculated
Paid Parental Leave is calculated as a daily rate, paid fortnightly into your nominated bank account.
The formula is straightforward:
Daily rate × number of payable days = total PPL payment
For 2025-26:
~$189.62 per day × 120 days = ~$22,754 gross
Because the rate is tied to the National Minimum Wage — not your salary — it does not matter whether you normally earn $50,000 a year or $150,000. Every eligible parent receives the same base rate.
Gross vs net: what actually hits your account
Paid Parental Leave is taxable income. Services Australia withholds tax at a default rate of 15% unless you request a different arrangement.
| Amount | 2025-26 |
|---|---|
| Gross (before tax) | ~$22,754 |
| Tax withheld at 15% | ~$3,413 |
| Net (deposited) | ~$19,341 |
The actual tax you owe for the year is calculated when you lodge your tax return. If 15% withholding results in more tax being withheld than you owe, you'll receive a refund. If you have other income in the same financial year — for example, from returning to work — the PPL forms part of your total taxable income and is taxed at your marginal rate overall.
If you prefer to have more tax withheld upfront to avoid a bill at tax time, you can request this when applying.
Why the payment is the same for everyone
This is one of the most surprising aspects of the scheme for higher-earning parents.
Government Paid Parental Leave does not replace your salary. It provides a standard base income for the leave period, equivalent to full-time earnings at the minimum wage.
| Your income before leave | PPL payment |
|---|---|
| $60,000 salary | ~$22,754 gross (24 weeks) |
| $100,000 salary | ~$22,754 gross (24 weeks) |
| $150,000 salary | ~$22,754 gross (24 weeks) |
For parents on minimum wage, PPL closely matches their normal income. For parents on higher salaries, there is a more significant gap between their usual earnings and the PPL payment — which is why many families also rely on employer parental leave to bridge the difference.
How many weeks can you take?
The full entitlement for 2025-26 is 24 weeks (120 days).
This can be taken in various ways:
| Leave arrangement | Example |
|---|---|
| Continuous from birth | All 120 days taken immediately after the baby arrives |
| Split between parents | One parent takes 16 weeks, the other takes 8 weeks later |
| Part taken, part deferred | Some leave taken early, remainder used later in the first year |
Each parent must keep at least 20 days (4 weeks) reserved — these cannot be transferred to the other parent. The remaining 80 days can be shared between eligible parents in any combination that suits the family.
Paid Parental Leave days generally need to be taken before the child turns 2 years old (or within 2 years of an adoption).
How does employer parental leave affect the total?
Government Paid Parental Leave and your employer's parental leave policy are separate entitlements. They can be used together in various combinations depending on your employer's policy.
Common arrangements:
- Employer pays full salary for 8–16 weeks, then government PPL takes over
- Government PPL is taken first, then employer leave follows
- Some employers pay the difference between PPL and your normal salary as a top-up
- Employer leave and government PPL are taken concurrently (check your employer's policy)
There is no blanket rule that prevents you from receiving both — it depends on how your employer has structured their leave policy. Some employers treat government PPL as part of their leave entitlement (i.e. they reduce their payment by the government amount); others pay their leave on top. This is worth clarifying with your HR team before you make any plans.
Employer leave may also include:
- Continued superannuation contributions during leave
- Accrual of annual leave entitlements (varies by employer)
- Salary continuation at full or partial rate
PPL counts as income for CCS and FTB
Because PPL is taxable income, the gross amount — around $22,754 — is included in your Adjusted Taxable Income (ATI) for the financial year.
This matters for two government payments:
Child Care Subsidy (CCS): Your CCS rate for the year is based on your combined family ATI. If you return to work during the same financial year that you received PPL, your total income for that year includes both your salary and your PPL gross amount. If your income estimate with Centrelink is too low, you may face a CCS debt at balancing.
Family Tax Benefit (FTB): FTB is also income-tested. PPL received in a financial year increases your ATI, which can reduce your FTB entitlement — particularly FTB Part A, which tapers from around $83,280 combined income. If you underestimate your income with Centrelink during the year, you may have to repay some FTB at balancing.
Both of these interact with PPL income in ways that can catch parents off guard. For a detailed explanation, see How Parental Leave Pay Affects Your FTB at Balancing.
Why many families ask the wrong question first
Most parents start by asking: "How much PPL will we get?"
Once they know the answer — around $946 a week before tax — the real question usually follows: "How long can we afford to stay home?"
Government PPL covers 24 weeks at minimum wage rates. Employer leave may extend that at a higher income level. But eventually, leave ends and the household either absorbs a period on a single reduced income, or one parent returns to work and childcare begins.
Understanding the whole first-year timeline — leave income, income gap, return-to-work date, and childcare costs — gives a much clearer picture than the PPL amount alone.
The PPL Planner is built to show you this. Enter your leave arrangements and it models your household income across the first 12 months, then shows what your weekly childcare cost would look like at different return-to-work schedules — so you can see the full picture before making decisions.
Frequently asked questions
Is there a maximum or minimum PPL payment?
There is no variable maximum — every eligible parent receives the same rate based on the National Minimum Wage. There is no minimum either; the payment is simply the daily rate multiplied by the number of days you take.
When do payments start?
Payments begin after the birth is confirmed and eligibility is verified by Services Australia. If you apply before the birth, payments are typically processed quickly after you notify Services Australia that the baby has arrived. They are paid fortnightly into your nominated bank account.
What if I return to work earlier than planned?
If you return to work before using all your PPL days, your remaining entitlement can in many cases be used later — either by you or by your partner — before the child turns 2. Contact Services Australia to understand your options before returning early.
Does PPL affect my Age Pension or other Centrelink payments?
PPL is income for the purposes of most Centrelink income tests, so it may affect other payments you receive during the same period. If you receive any other government income support, check with Services Australia how PPL interacts with those payments.
Will the rate change next year?
Yes, possibly. The PPL rate follows the National Minimum Wage, which the Fair Work Commission reviews each year (typically taking effect from 1 July). Any increase to the minimum wage in July 2026 will flow through to PPL rates from that date.
This guide uses estimated 2025-26 figures based on the National Minimum Wage rate. Exact amounts are set by Services Australia. For a formal calculation, contact Services Australia at 136 150 or visit servicesaustralia.gov.au/paidparentalleave.