Understanding government-paid parental leave
In 2024, over 54,000 parents in New Zealand accessed government-paid parental leave (IRD). In this article, we break down how it works.
What is paid parental leave (PPL)?
As a new parent in New Zealand, you are eligible for government-funded parental leave payments designed to replace your normal income (up to a cap) while you care for your new child. These payments are made directly to you by Inland Revenue for up to 26 continuous weeks.
It’s important to know that parental leave and paid parental leave are not the same thing.
Parental leave refers to the time off work that you're entitled to take when you have a new child.
Paid parental leave (PPL) is the government-funded income support you may be eligible for during this time.
-
No. The New Zealand government does not offer paid partner leave. Employers may offer additional provisions.
A primary carer can transfer all or some of their parental leave payments to their partner (see below).
Basic eligibility requirements
To qualify for paid parental leave, you must meet these key requirements:
You are the child's primary carer
You meet the work history requirements
You have a 'sufficient connection' to New Zealand
Six months have passed since the last payment of paid parental leave you received for another child (if applicable)
Definition of primary carer
You are a primary carer if you meet one of the following criteria:
You are the birth parent,
You are the spouse or partner of the birth parent, and the birth parent transfers some or all of their entitlement to government-paid parental leave payments to you, or
You take permanent primary responsibility for a child under the age of six. If you have a spouse or partner, you must nominate who will be the primary carer.
Work history requirements
You must have worked an average of at least 10 hours per week for any 26 of the 52 weeks immediately before your child's expected due date or placement date.
-
Good news! It doesn't matter how many employers you've had during this period. You can combine the hours from all your employers, including periods when you weren't working.
-
If you’ve worked at your current employer for less than six months before your due date or placement date, but you've worked as an employee for an average of at least 10 hours a week for any 26 of the 52 weeks before your child arrives across multiple employers, you're still eligible for PPL payments.
In this case, you are not entitled to take parental leave from your current employer, so you'll need to apply for negotiated carer leave.
-
Self employed parents can also qualify for PPL provided the meet the work requirements.
If you work both as an employee and are self-employed, you must meet the requirements through either your employment or self-employment. You cannot combine hours from both types of work to meet the work requirements.
However, if you meet the work requirements in either employment or self-employment, you can combine the amount you earn across both sources to maximise your parental leave payments.
Sufficient connection to New Zealand
For employees, this typically means working for a New Zealand employer with employment subject to New Zealand law.
For self-employed parents, this generally means paying income tax in New Zealand.
Non-citizens or non-permanent residents may qualify for paid parental leave if they have a sufficient connection to New Zealand. This can be complex to determine, so check with IRD if you're unsure about your eligibility.
To check your eligibility, use the IRD tool.
How much will I receive?
As of July 1, 2024, PPL payments are capped at $754.87 per week before tax. The minimum weekly payment for self-employed individuals is $231.50 before tax.
The most you can receive over the 26 weeks is $19,626.62 before tax.
These payments are subject to deductions, including income tax, KiwiSaver, and student loan repayments.
These amounts are adjusted annually on 1 July to account for increases in average weekly earnings.
-
Paid Parental Leave (PPL) helps replace your income while you care for a new child — up to a capped amount.
As of 1 July 2024, the maximum weekly payment is $754.87 before tax.
If you're an employee:
You’ll receive the higher of:
Your ordinary weekly pay (as outlined in your employment agreement), or
Your average weekly income from your 26 highest-paid weeks in the 12 months before your due date or care date.
If you’ve had multiple employers, income from all of them is combined.
If you're self-employed:
You can choose the higher of:
Your average weekly net income over 12 months, or
Your average over 6 months.
In both cases, this is based on net income (your earnings after business expenses, but before tax) up to your due or care date.
If your income is low or you've made a loss, you may still be eligible for the minimum payment of $231.50/week.
If you have both employee and self-employed income:
If you qualify through one type of work, you can combine income from both to increase your payment.
But you can’t combine hours across employee and self-employed work to meet the eligibility requirement.
-
Inland Revenue will pay directly into your nominated bank account every two weeks for 26 weeks or until you return to work, whichever is earlier.
-
Yes, government-paid parental leave is subject to income tax.
If you receive any other sources of income at the same time, such as employer-paid parental leave or payment for KIT hours worked, the IRD suggests using a secondary tax code on either your income or your paid parental leave payments, whichever is smaller. You will need to apply:
A main tax rate (often referred to as "M" tax code) for one source of income
A secondary tax rate on all other sources of income
Visit the IRD website for more guidance.
-
As of the article’s publication date, ACC levies are not deducted from parental leave payments.
-
Yes, so long as you have worked as a self-employed person for an average of 10 hours a week in at least 26 of the weeks in the year before your due date or the date the child comes into your care.
If you meet the eligibility criteria, you will receive the minimum weekly parental leave payment, currently $231.50 per week, as of the time of writing. This amount is reviewed annually in July. -
Yes, student loan payments are deducted from your parental leave payments.
In some situations, you may earn more than the pay period repayment threshold but less than the annual repayment threshold. You may be able to apply for a student loan repayment deduction exemption.
Sharing paid parental leave with your partner
You can transfer part or all of your paid parental leave to your partner if:
You meet the work requirements mentioned above
Your partner also meets these work requirements
Your partner takes time off work to become the primary carer
Important things to know about transfers:
One parent’s leave period must start immediately after the other parent’s ends
Each parent's payment amount is based on their individual income. This means the amount your partner is entitled to could differ from the amount you are entitled to.
If the primary carer has already started receiving payments and then transfers these to their partner, the payments cannot be transferred back to them. If their partner needs to return to work early, the parental leave payments will end.
However, if the primary carer transfers their payments before they start receiving them, the payments can be transferred back to them. That means if their partner needs to return to work early, the payments can be transferred back to the primary carer before their partner returns.
Timeframes
Starting PPL
Parental leave payments begin from the earlier of:
The date you officially start parental leave, or
Your date of confinement (the day labour begins).
If you’re an employee using paid leave, such as annual leave, paid time-in-lieu or employer-paid parental leave, before your government-paid parental leave, your payments will start the day after that paid leave ends even if it’s after the birth of your child.
If you apply after your baby is born, you’ll receive a lump sum payment to cover the time from your official start date until your ongoing payments begin.
See: How parental leave entitlements can be used in New Zealand
Finishing PPL
Your parental leave payments will end the earlier of:
26 weeks after you start to receive payments,
When you return to work, or
When you transfer your paid parental leave to your partner.
KiwiSaver on PPL
From 1 July 2024, if you choose to have KiwiSaver deductions taken from your parental leave payments, Inland Revenue will also make employer contributions of 3% on your behalf.
Contributing to KiwiSaver while receiving paid parental leave is optional.
You can ask Inland Revenue to deduct KiwiSaver contributions from your parental leave payments when you apply, or later through your myIR account if you're already receiving payments.
You can stop your KiwiSaver contributions at any time through myIR.
If you're still receiving a salary or wages from your employer during parental leave (for example, using annual or employer-paid leave), they’ll continue to deduct your KiwiSaver contributions and make compulsory employer contributions, unless you’ve arranged a savings suspension.
Applying for PPL
Whether an employee or self-employed, you must apply separately to Inland Revenue for paid parental leave payments here. This doesn't happen automatically through your employer.
You must apply before the earlier of:
Your child's first birthday for birth parents, or 12 months after becoming the primary carer for adoption and permanent care arrangements
Before you return to work, except for keeping-in-touch hours
See: Applying for parental leave in New Zealand: A guide for employers and parents
Working while receiving PPL
Employees
If you're an employee and your employer agrees, you can work up to 64 hours during your 26-week PPL period without affecting your payments. These are called 'keeping in touch' hours and help you stay connected with work.
Key rules:
You cannot work within the first 28 days after birth
Maximum 64 hours total over the entire 26-week period
Both you and your employer must agree
You'll be paid your normal rate for these hours
If you work more than 64 hours or within the first 28 days of birth, you'll be considered back at work and payments will stop
See: Communicating with employees on parental leave: A guide to keeping-in-touch hours
Self-employed
If you’re self-employed, you generally need to stop working to receive paid parental leave payments. But there are a couple of important exceptions:
You can still be paid for work you completed before your leave started. If you send out an invoice or receive payment during your leave period for work you did earlier, that won’t affect your entitlement.
You can receive income for work done by others. If someone else (e.g. a contractor or employee) keeps your business running while you’re on leave, and your business continues to earn income as a result, that’s okay as long as you’re not doing the work yourself.
Keeping in touch hours don't apply, but you can do occasional oversight or administration of your business.
Special circumstances
If you have a premature baby
Additional preterm payments are available if your baby is born before 37 weeks.
See: Premature baby: Understanding your NZ entitlements
If you experience a pregnancy loss
We recognise that pregnancy loss can be an extremely difficult experience. The information below outlines statutory entitlements. We encourage you to discuss with your manager any additional support that may be available.
If you experience a miscarriage or stillbirth, you are still eligible for PPL if:
You meet the standard work requirements detailed above,
You have not transferred your PPL entitlement to your partner, and
You have not returned to work since your payment period began (which starts either when you begin parental leave or when the birth occurs, whichever is earlier).
You are also entitled to three days of paid bereavement leave after completing six months of service at your employer. Bereavement leave is in addition to any paid parental leave entitlements.
See: Miscarriage and stillbirth: a guide for NZ employers
If you have another child
For subsequent children, you must wait at least 6 months after your previous paid parental leave ends to be eligible for PPL again.
This waiting period applies to stillbirth or miscarriage. If you received PPL following a stillbirth or miscarriage, you'll need to have a 6-month gap without payments before you can start receiving parental leave payments for another child.
You must requalify again, i.e. you must have worked an average of at least 10 hours per week for any 26 of the 52 weeks immediately before your next child's expected due date or placement date.
If you have twins or multiples
Your paid parental leave payments are the same no matter how many children you are expecting.
See: Twins and multiples: A guide for NZ employers
If you’re having a child by surrogacy
In surrogacy situations, both the birth parent and the intended primary carer have separate entitlements.
The birth parent maintains full eligibility for primary carer leave and parental leave payments if they meet the work requirements. The birth parent's entitlements continue even after they hand over care of the child.
The intended primary carer who will permanently care for the child is separately eligible for primary carer leave, extended leave and payments.
See: Surrogacy: A guide for NZ employers
Where to go for more information
While we work to keep our information current, the last word lies with the relevant government agencies:
Contact Inland Revenue (IRD) for information on government-paid parental leave, including payment eligibility, application processes, rates, and transferring payments.
For everything else related to parental leave entitlements, contact the Ministry of Business, Innovation and Employment (MBIE) through Employment New Zealand.
Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 28 May 2025.
Stephanie Pow
Founder and CEO, Crayon