The costs and benefits of implementing a universal reproductive health leave entitlement in Australia

The Health Services Union (HSU), the Health and Community Services Union (HACSU), the Queensland Council of Unions (QCU) and Aware Super have engaged the services of the Bankwest Curtin Economics Centre (BCEC) to assess the cost of implementing a universal reproductive health leave (RHL) entitlement to Australian workers.

This report also estimates the financial benefits and costs offset for companies and employees related to the provision of RHL. Additionally, the economic cost of lost productivity of people with reproductive health conditions, due to absenteeism and reduced productivity, is also calculated in this report.

Key findings

Annual lost productivity costs from reproductive health conditions

• The value of lost productivity cost from reproductive health conditions is estimated at $21.3 billion per year.
• Menopause, menstrual pain, endometriosis and miscarriage are the main contributors to the value of lost productivity from reproductive health conditions.

Gross annual costs of reproductive health leave (up to 12 days)

• The aggregate gross cost of up to 12 days of paid reproductive health leave is estimated to be between $2.3 billion and $5.9 billion, with a central estimate of $3.6 billion.
• These gross costs equate to between $190 and $487 per employed worker, with a central estimate of $296 in gross costs per worker per year under the benchmark scenario.

Annual benefits to businesses from implementing up to 12 days of paid RHL

• The aggregate financial benefits to businesses from the implementation of up to 12 days of paid RHL are estimated to be between $1.13 billion and $3 billion per year, with a central estimate of $1.88 billion per year.
• This represents a mid-range cost offset of 53% on the up-front costs of 12 days of paid RHL.

Net annual costs of reproductive health leave (up to 12 days)

• The aggregate net cost of up to 12 days of reproductive health leave is estimated to be $1.7 billion under mid-range assumptions regarding gross costs and cost offsets.
• These net costs equate to $140 per year per employed worker.