New Zealand boosts parental leave payments starting July

Working parents in New Zealand can expect enhanced financial support for parental leave starting July 1, with the maximum weekly payment rate rising from NZ$754.87 (US$457.26) to NZ$788.66 (US$477.73), Workplace Relations and Safety Minister Brooke van Velden announced.

The adjustment, mandated by the Parental Leave and Employment Protection Act 1987, reflects annual increases tied to average weekly earnings. Eligible parents can receive paid parental leave for up to 26 weeks, with payments designed to replace their normal wages up to the current maximum rate.

Van Velden highlighted the importance of supporting families during the critical early weeks with their newborns or newly adopted children. “It is important to me that families receive the support they need to give their child the best start in life,” she said.

The increase also extends to self-employed parents, whose minimum weekly payment will rise from NZ$231.50 (US$140.23) to NZ$235 (US$142.35) gross, in line with the recent minimum wage increase to NZ$23.50 (US$14.24) per hour effective 1 April. This minimum payment corresponds to 10 hours worked per week at the adult minimum wage.

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The parental leave scheme covers a broad range of family situations, including biological parents, adoptive parents, and those who have welcomed a child via surrogacy. It also provides support for those who have experienced miscarriage or stillbirth, as well as women acting as surrogates, recognising the physical and emotional challenges involved.

Acknowledging the ongoing cost-of-living pressures on families, van Velden emphasised that paid parental leave remains a vital government measure to ease financial burdens during time away from work.