What is a parental leave top-up?

Government paid parental leave is capped at a maximum weekly amount, which is often less than your normal pay. Some employers voluntarily top this up, either to full pay or part way, for a period. A top-up is an employer benefit, not a legal requirement.

How much is government paid parental leave?

It pays your normal weekly pay up to a maximum weekly cap, for up to 26 weeks, funded by the government through IRD. If you earn above the cap, there is a gap between the payment and your usual income.

Yes, both the government payment and any employer top-up are taxable income through PAYE.

Maternity Pay Top-Up Calculator

This New Zealand calculator works out the gap between your normal pay and government paid parental leave, and the cost or value of an employer top-up. Paid parental leave is capped at a maximum weekly amount, so higher earners face a shortfall. You enter your normal weekly pay, the parental leave cap and the top-up share, and the tool shows the weekly gap, the top-up and the total over the leave period.

Your normal weekly pay (gross)

PPL weekly cap

Employer top-up of the gap

Top-up weeks

employer top-up per week

Weekly gap (pay minus PPL)$0

Total top-up over period$0

Combined weekly pay$0

The PPL cap is the government maximum weekly payment (check the current figure, adjusted on 1 July). The top-up is a voluntary employer benefit; figures are gross and taxable through PAYE. Estimate only.

How it works

The calculator finds the weekly gap between your normal pay and the parental leave payment (capped at the weekly maximum), then applies the employer top-up percentage to that gap. It shows the weekly top-up, your combined weekly pay during the top-up, and the total top-up cost over the chosen weeks, which helps both employees and employers plan.

Worked example

On $1,300 normal weekly pay with a $788 PPL cap, the gap is $512 a week. A 100% top-up adds $512 a week, restoring full pay, costing about $13,300 over 26 weeks. A 50% top-up would add $256 a week instead.

Related calculators

Parental Leave Payment Calculator: PPL payments.
Baby Number Two Calculator: cost of a second child.
Return to Work Worth It Calculator: returning to work.
Budget Calculator: budget on leave.

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