NZ Parental Leave Payment Calculator
This calculator estimates the paid parental leave (PPL) payment you could receive from Inland Revenue while you are the primary carer of a new child, under the Parental Leave and Employment Protection Act 1987. You enter your employment type (employee, self-employed, or both), your annual gross income, whether that income is regular or variable week to week, and your average hours worked. You also enter how many of the last 52 weeks you have worked at 10 or more hours (the work test IRD uses for eligibility), how many of the 26 available weeks you plan to take as primary carer versus transfer to your partner, and whether you want to opt into KiwiSaver contributions during your leave. The calculator returns whether you meet the eligibility test, your estimated weekly payment capped at the maximum weekly rate, the total gross payment over your chosen leave period, and the income gap between this payment and your normal weekly pay. It also breaks down your ordinary weekly pay, fortnightly payment, weeks transferred to a partner, and, if you opt in, your weekly KiwiSaver contribution alongside the IRD-matched employer contribution over your full leave period. These figures are indicative estimates only; your actual entitlement is confirmed by Inland Revenue based on your verified income and work history, so use this tool to plan and budget rather than as a guarantee of payment.
1. Your Income
2. Eligibility and Options
Payment Calculation
KiwiSaver During Leave
How Paid Parental Leave Works in New Zealand
Paid parental leave (PPL) in New Zealand is a government-funded payment administered by Inland Revenue (IRD), not your employer. It provides income support to the primary carer of a new child for up to 26 continuous weeks. The payment covers biological parents, adoptive parents, whangai (informal adoption), and parents of children born through surrogacy.
Eligibility
To qualify for paid parental leave payments, you must:
- Have worked an average of at least 10 hours per week for any 26 of the 52 weeks immediately before the expected due date (or date of adoption/care)
- Be the primary carer of the child (only one person at a time)
- Be an employee, self-employed, or both
The 26-week work test can be met across multiple employers or a combination of employment and self-employment. It is separate from the 6-month and 12-month service tests that determine your entitlement to job-protected unpaid parental leave from your employer.
Payment Rates (from 1 July 2026)
| Rate | Amount | Applies To |
|---|---|---|
| Maximum weekly rate | $811.05 gross/week | Employees and self-employed earning above the cap |
| Minimum weekly rate (self-employed) | $239.50 gross/week | Self-employed parents (10 hours at minimum wage) |
| Payment duration | 26 weeks | Continuous period, paid fortnightly |
| Maximum total (at cap) | $21,087.30 gross | 26 weeks at $811.05/week |
The maximum rate is reviewed annually on 1 July to reflect changes in average weekly earnings. The minimum rate for self-employed parents is linked to the adult minimum wage (currently $23.95/hour from 1 April 2026).
How the Payment is Calculated
IRD calculates your payment as the higher of:
- Ordinary weekly pay (OWP): What you regularly earn per week, including regular allowances and productivity payments
- Average weekly income (AWI): The average of your best 26 weeks of earnings within the 52 weeks before the due date
The payment is capped at the maximum rate. If you have income from multiple employers, all income is combined. For variable earners, the "best 26 of 52 weeks" method ensures you are not disadvantaged by weeks with lower earnings.
KiwiSaver During Parental Leave
Since 1 July 2024, employees on paid parental leave can choose to continue their KiwiSaver contributions from their IRD payments. If you opt in:
- Your employee KiwiSaver contributions are deducted from your PPL payment at your chosen rate
- IRD matches the employer contribution at the current compulsory minimum rate (3.5% from 1 April 2026)
- This is a significant benefit: previously, no employer contributions were made during parental leave unless you were being paid by your employer
You can opt in or out through myIR. If your employer is topping up your pay during parental leave, they continue making employer KiwiSaver contributions on the top-up amount.
Leave Types and Duration
| Leave Type | Duration | Paid/Unpaid | Eligibility |
|---|---|---|---|
| Primary carer leave | Up to 26 weeks | Paid by IRD (if eligible) | 6 months service |
| Extended leave | Up to 52 weeks total | Unpaid (job protected) | 12 months service |
| Partner leave | 2 weeks | Unpaid | 6 months service |
| Keeping-in-touch days | Up to 64 hours | Paid by employer | Agreed by both parties |
Transferring Leave to Your Partner
The primary carer can transfer some or all of their remaining paid parental leave entitlement to an eligible spouse or partner. The partner must also meet the work test independently. Only one person can be the primary carer at any given time. The partner's payment is calculated based on their own earnings, capped at the maximum rate.
Tax and Other Considerations
- Paid parental leave is taxable income (use PPL tax code)
- If receiving employer top-up simultaneously, secondary tax code applies to the lower income source
- Annual leave continues to accrue during parental leave
- Sick leave entitlements carry over
- Your job must be kept open for the duration of your leave
- Personal grievance rights apply if the employer fails to comply
Regulatory Framework
- Parental Leave and Employment Protection Act 1987: Governs all parental leave entitlements
- Inland Revenue: Administers PPL payments (ird.govt.nz/paid-parental-leave)
- Employment New Zealand: Guidance on employer obligations (employment.govt.nz)
Related Calculators
- PAYE and Salary Calculator
- KiwiSaver Retirement Calculator
- Sick Leave Balance Calculator
- Redundancy Entitlement Calculator
- Working for Families Tax Credits Calculator
- Budget Calculator NZ
- Parental Leave Payments Guide
Sources: Parental Leave and Employment Protection Act 1987 (legislation.govt.nz). IRD Paid Parental Leave guidance (ird.govt.nz/paid-parental-leave). Employment New Zealand parental leave entitlements (employment.govt.nz). IRD paid parental leave rate change effective 1 July 2026 (ird.govt.nz).
This calculator provides indicative estimates only and does not constitute financial, employment, or legal advice. Actual paid parental leave payments are calculated by Inland Revenue based on your specific income and employment history. Payment rates are subject to annual review. Consult IRD (ird.govt.nz) or Employment New Zealand for definitive eligibility and payment information.