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 calculator works out what it costs an employer to top up a staff member's government paid parental leave (PPL), and the gap that top-up is meant to close. Paid parental leave in New Zealand pays your normal weekly pay up to a set weekly cap, so anyone earning above that cap faces a shortfall between their usual income and what the government pays while on leave. You enter your normal weekly gross pay, the current PPL weekly cap, the percentage of the gap your employer is willing to top up, and the number of weeks the top-up will run. The calculator returns the employer top-up per week, the weekly gap between your pay and the PPL payment, the total top-up cost over the whole period, and your combined weekly pay once the top-up is added to the government payment. Use it to see what a full or partial top-up would actually cost an employer, or what it would restore for an employee, before agreeing on terms. Remember that a top-up is a voluntary employer benefit rather than a legal requirement, that both the PPL payment and any top-up are taxable through PAYE, and that the PPL cap changes each year on 1 July, so check the current figure before relying on the result. Treat the numbers as an estimate for planning and negotiation, not a payroll-ready calculation.

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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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