Westpac Group's permanent employees are set to enjoy superannuation benefits as the banking group announced Tuesday that beginning July 1, company staffs would be entitled to a nine percent superannuation payment with options of taking up to 39 weeks of unpaid parental leave.

The new benefits came on top of the existing 13 weeks paid parental leave with superannuation benefits as Westpac chief executive Gail Kelly said that the adjustment was the first initiative coming from a private sector and she estimated that up to 1750 employees would reap benefits from the measure each year.

Ms Kelly said that Westpac's decision now "sets a high benchmark and reflects our strong resolve that employees should not be financially disadvantaged in retirement," as she added that the initiative could garner a total of $72,000 in extra retirement savings for an employee who elected for two periods of parental leave.

Westpac said that the generous benefits would be given along with the federal government's 18-week paid parental leave scheme which is set to be imposed by January next year.

Families Minister Jenney Macklin hailed Westpac's move as a win scenario for both the company and its employees, telling AAP that "Westpac clearly recognises the value of family friendly working conditions for attracting and retaining their staff."

The Westpac initiative could potentially give its employees a total of 31 weeks of paid leave and Ms Macklin said that such benefit could set the pace for other players in the financial sector.

Under the government's existing scheme, a nominated parent, with income of not more than $150,000 each year, is required to work at least 330 hours in 10 of the 13 working months prior to a child's birth or adoption, stipulating a threshold of two-month off.