Since 2022 we have seen a wave of legislative changes by governments in Asia Pacific improving the mandatory benefits for working parents: increases to maternity leave, paternity leave and parental leave, as well as introducing childcare subsidies and allowances. In addition to ensuring compliance with these new requirements, employers are taking the opportunity to advance their corporate Diversity, Equity and Inclusion (DE&I) agenda through more flexible working arrangements and extending paid or unpaid leave benefits to a broader group of employees.

Overview of legislative changes

We set out below some of the key changes to parental leave and childcare subsidies since 2022:

Employers should confirm that these new requirements are reflected in their HR policies, and update policies as needed for forthcoming changes, such as annual increases to parental leave in Australia.

Beyond compliance: family friendly benefits as a differentiator

When updating benefit policies for the new legislative requirements, we see a trend amongst companies in Asia Pacific who are taking the opportunity to adopt a more family friendly approach to their benefits, for example by extending the eligibility and/or leave periods compared to the minimum required. This often involves increasing paid maternity / paternity leave or offering additional parental leave, including for adopting children. It may be implemented on a country or regional basis, or as part of a wider global initiative. We also see companies offering flexible working arrangements for working parents, and phasing in the return to work after maternity leave. In a few cases we have also seen companies go a step further by setting up on-site childcare facilities at the workplace or offering childcare subsidies to their employees.

With the focus on family friendly benefits, which will benefit working parents, employers may also wish to consider those employees without children and whether the overall benefits package is equitable to all – and where the balance should lie, reflecting the culture and needs of the business.

Our 2024 Global Benefits Forecast survey identified flexible working and leave (paid time-off) benefits as two of the benefits most valued by employees. Our survey also revealed that choice/flexibility and employee fit of benefits was considered a lower priority for employers – principally due to cost considerations when designing or reviewing employee benefits.

Leave benefits are an area where flexibility and employee choice can be accommodated relatively easily, allowing employees to personalise an aspect of their benefits package that they value. While providing extra leave benefits to all employees has cost implications for the employer, studies suggest the increased productivity and employee retention more than outweigh the costs.

These benefits can therefore be a way of differentiating your corporate benefits offering from the competition, support DE&I objectives and help you attract and retain the right talent for your business.