How much is paid parental leave in New Zealand?

Paid parental leave in NZ is paid at your ordinary weekly pay or average weekly income (whichever is higher), capped at a maximum of $788.66 gross per week from 1 July 2025. If you earn less than this, you receive your actual weekly earnings. Self-employed parents receive a minimum of $235.00 gross per week (equivalent to 10 hours at minimum wage). The payment is made fortnightly by Inland Revenue for up to 26 weeks.

Who is eligible for paid parental leave in NZ?

To qualify for paid parental leave, you must have worked for an average of at least 10 hours per week for any 26 of the 52 weeks immediately before the expected due date (or the date of adoption/care). This work history can be across multiple employers or include self-employment. You must be the primary carer of the child. Both employees and self-employed people can qualify. The 26-week work test is separate from the 6-month and 12-month tests that determine your entitlement to job-protected unpaid parental leave.

Can I contribute to KiwiSaver during parental leave?

Yes. Since 1 July 2024, employees on paid parental leave can opt to continue their KiwiSaver contributions from their IRD parental leave payments. If you opt in, IRD will also match the employer contribution at the current minimum rate (3.5% from 1 April 2026, rising to 4% from 1 April 2028). This is a significant benefit that was not previously available. You can opt in through myIR.

Can I transfer paid parental leave to my partner?

Yes. 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 (10 hours/week average for 26 of 52 weeks). Only one person can be the primary carer at any given time. The transfer must be applied for through IRD. The partner's payment is calculated based on their own earnings, not the primary carer's.

How is the paid parental leave payment calculated?

IRD calculates your payment as the higher of your ordinary weekly pay (your regular weekly earnings) and your average weekly income (the average of your best 26 weeks of earnings in the 52 weeks before the due date). The payment is then capped at the maximum rate of $788.66 per week. If you work regular hours, your entitlement is based on your weekly, fortnightly, or monthly pay. If your income varies, IRD takes the best 26 of 52 weeks. Income from multiple employers is combined.

NZ Parental Leave Payment Calculator

Estimate your paid parental leave payment under the Parental Leave and Employment Protection Act 1987. Eligible parents can receive government-funded payments for up to 26 weeks, paid fortnightly by Inland Revenue. The maximum payment is $788.66 gross per week from 1 July 2025, reviewed annually.

Since 1 July 2024, you can opt to continue KiwiSaver contributions during paid parental leave, with IRD matching the employer contribution at the current minimum rate (3.5% from 1 April 2026). This calculator shows your estimated weekly payment, total payment over 26 weeks, income gap versus your normal pay, and KiwiSaver impact.

Updated April 2026 Maximum rate $788.66/week from 1 July 2025. KiwiSaver employer match at 3.5%.

1. Your Income

Employment type

Annual gross income (before tax)

Income is (affects calculation method)

Hours worked per week (average)

hrs/wk

2. Eligibility and Options

Weeks worked (of last 52 weeks, averaging 10+ hrs/wk)

of 52

Weeks to take as primary carer

Opt in to KiwiSaver during leave?

KiwiSaver contribution rate

Your Estimated Parental Leave Payment

Eligible

Work test (26 of 52 weeks)

Weekly Payment
-
Gross, before tax

Total (26 weeks)

Gross entitlement

Income Gap

Per week vs normal pay

Payment Calculation

Your ordinary weekly pay-

Maximum weekly rate (from 1 Jul 2025)$788.66

Your weekly payment-

Fortnightly payment-

Weeks as primary carer-

Weeks transferred to partner-

Total gross payment-

Income gap vs normal (per week)-

Income gap over leave period-

KiwiSaver During Leave

KiwiSaver opt-in-

Your contribution rate-

Your weekly contribution-

IRD employer match (3.5%)-

Total weekly to KiwiSaver-

Total KiwiSaver over leave-

Government contribution50c per $1, max $260.72/yr

Keeping-in-touch hoursUp to 64 hours total

Summary: Enter your details above.

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 2025)

Rate	Amount	Applies To
Maximum weekly rate	$788.66 gross/week	Employees and self-employed earning above the cap
Minimum weekly rate (self-employed)	$235.00 gross/week	Self-employed parents (10 hours at minimum wage)
Payment duration	26 weeks	Continuous period, paid fortnightly
Maximum total (at cap)	$20,505.16 gross	26 weeks at $788.66/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 $23.50/hour from 1 April 2025).

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

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 2025 (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.