IAG will offer the equivalent of 20 weeks’ parental leave at full pay in an effort to retain female staff and enable more women to reach senior positions.

The program, announced this morning, includes a 14-week payment when a person goes on maternity leave and a bonus that doubles pay for six weeks when the person returns.

CEO Mike Wilkins says the bonus aims to ease financial pressures when women return to work.

Secondary carers will also be offered three weeks’ paid leave and the insurer will address the issue of women returning to work on their pre-leave salaries.

“IAG has also committed to hold remuneration reviews with mothers who are absent from the workplace to ensure pay remains fair and consistent with their colleagues, while still being based on merit and achievement,” Mr Wilkins said.

IAG aims to have 33% of its senior management positions filled by women by 2015, compared with 28% now. Women make up about 50% of its workforce.

The program is in addition to the Federal Government’s parental leave policy of up to 18 weeks’ support.

The move puts IAG ahead of the financial services industry average of 13 weeks’ paid maternity leave.

Finance Sector Union spokesman Julia Angrisano says the move is good news for staff, who tend to compare the benefits on offer at other companies in the industry.

“We think it’s a positive step and a step in the right direction for workers across IAG,” she told insuranceNEWS.com.au.

“We think financial services companies can afford to increase benefits.”