Telcos increase parental leave perks in tight job market - how they compare

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Spark is the latest telco to offer more generous parental leave provisions in what remains a tight tech job market.

The telco’s new Whakapuāwai programme sees a staff member receive 100 per cent of their normal salary for 26 weeks as the telco tops up the Government’s parental leave payments (which runs to $661.12 per week for up to 26 weeks).

Secondary carers will also receive four weeks paid leave, increased from two.

Spark will also continue employer KiwiSaver contributions of up to 3 per cent during their parental leave period

And a phased return-to-work policy allows primary caregivers to work 80 per cent of their regular hours on 100 per cent pay for their first three months back.

Waikato University Law professor Claire Breen recently highlighted that only 1 per cent of Kiwi men take paid parental leave and only 4 per cent take unpaid leave (a partner is legally entitled to up to two weeks of leave, which is unpaid; paid leave can be transferred from a primary to a secondary caregiver).

A key barrier was the $661.12 weekly payment, which Breen described as “meagre”. The academic noted it was below the minimum wage.

Vodafone

Last month, rival Vodafone NZ said it would maintain its KiwiSaver contributions up to 4 per cent for a full year of parental leave.

The full-year contribution “helps to reduce the ‘motherhood penalty”, Vodafone HR head Jodie King said.

The telco, which will rebrand as One NZ in the new year, also introduced 26 days of flexi-leave for primary or secondary carers to take at any point during the two years post-birth.

2degrees

2degrees has been topping up parental leave payments to 100 per cent of pay for 26 weeks since May last year.

It also matches KiwiSaver contributions 2:1 when a caregiver comes back to work, for a period equal to the duration of unpaid leave (up to 26 weeks).

The telco will also offers a full week’s pay for a four-day work week during the first three months of a caregiver’s return to work.

Chorus

UFB network operator Chorus offers eight weeks’ fully-paid parental leave for a primary or secondary caregiver.

The leave can be used at any point over the 18 months post-birth.

“One of the key differences of Chorus’ policy is the equity lens we provide in regards to paid leave for both the primary and secondary caregiver – we don’t distinguish between gender,” Chorus spokesman Steve Pettigrew said.

“Chorus’ parental leave policy is currently under review with enhancements expected in the New Year,” Pettigrew added.

Focus on lost retirement savings

The telcos’ moves come as the unemployment rate continued to stay low at 3.3 per cent in the September quarter.

Employers have also been under pressure to help address the 20 per cent retirement savings gap between men and women’s average KiwiSaver balances.

In June research by NZIER found women who choose to leave the workforce or work part-time after having children could be forfeiting between $58,000 and $318,000 in retirement savings.

In August Z Energy said it would contribute 5 per cent towards KiwiSaver for all employees on parental leave for their entire parental leave period and pay employees working part-time, (over 20 hours a week) 5 per cent towards their KiwiSaver based on their full-time salary equivalent rather than their actual pro-rate pay.

Powering up

With power companies increasingly bundling broadband, telcos might also have an eye on the parental perks now being offered by the likes of Contact.

Last month, Contact introduced a full salary top-up for primary caregivers for 26 weeks.

It also offered a $5000 payment toward childcare, 10 days special leave for pregnancy-related appointments, three months’ free power (if they are a Contact customer).

A partner gets for weeks’ paid leave, which can be taken at any point over the year post-birth, and three months’ free power.