Workers could pay $5.70 a week to fund a paid maternity leave scheme for working mothers, under proposals being considered by the Rudd Government.

News Limited reports the $3.5 billion scheme will be put to the Productivity Commission inquiry into maternity leave tomorrow.

The plan would see all staff paying 0.5 per cent of their wages - $5.70 a week for those on the average wage - into a fund to meet the cost of the scheme.

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Employers would also be levied 0.5 per cent of their payroll.

In return, new mothers would be given six months leave on full pay, with their superannuation contributions also paid.

Fathers would also benefit, with four weeks paid paternity leave, while non-working mothers would continue to be paid the $5,000 baby bonus.

Ageing population

News Limited says employers will be offered subsidies to help them find temporary replacement staff to cover for those on leave.

The ACTU has previously called on the government to support a paid maternity leave scheme, with union president Sharan Burrow insisting: "Universal paid maternity leave will have across the board benefits not just for individual families but for the wellbeing of whole communities."

However, News Limited reports that this latest proposal is more than twice as generous as that put forward by the union movement, which has called for women to be paid the basic wage - for 14 weeks.

Announcing the Productivity Commission inquiry earlier this year, the government said it wanted to "explore ways to make it as easy as possible for working mums to balance their employment with the important job of raising a new generation of Australians".

It stressed any policy changes would be "aimed at ensuring strong and sustainable economic growth, take into account our ageing population and the importance of early childhood development, and support Australian families balance work and family responsibilities".