New Zealand’s parental leave scheme provides government-funded paid leave to eligible parents. The amount you receive depends on your income, with a maximum cap set by the government. This page explains the scheme and helps you calculate your expected payments.
Parental leave pay in NZ is the lesser of your average weekly income OR $712.17/week (gross, 2026 rate) for up to 26 weeks. If you earn $60,000/year (~$1,154/week), your parental leave pay is $712.17/week — the cap. If you earn $35,000/year (~$673/week), your parental leave pay is approximately $673/week — your actual weekly rate. Payments are taxable income.
Parental Leave Pay Calculator
Calculate Your Parental Leave Pay
How NZ Parental Leave Works
Duration
The primary carer (usually the birth parent or adoptive parent) can take up to 26 weeks of paid parental leave.
Partners can take 2 weeks of paid partner’s/paternity leave.
Extended unpaid leave is also available, bringing total leave entitlement to up to 52 weeks (26 paid + 26 unpaid) for eligible employees.
Eligibility
To qualify for government-funded parental leave pay:
- Employed or self-employed for at least 6 of the 12 months before the due date, working at least 10 hours/week on average
- NZ citizen or permanent resident
- Primary carer of the child
For casual or part-time workers, eligibility still applies if the 6-month/10-hour-average criteria are met.
How Pay Is Calculated
Your weekly payment = lesser of:
- Your average weekly income from work over the preceding 26 weeks
- The maximum rate: $712.17/week (2026 rate — confirmed annually by the government)
Key Numbers at Different Income Levels
| Annual Income | Weekly Income | Weekly Parental Leave Pay | 26-Week Total (Gross) |
|---|---|---|---|
| $35,000 | $673 | $673/week | $17,500 |
| $45,000 | $865 | $712/week (capped) | $18,516 |
| $60,000 | $1,154 | $712/week (capped) | $18,516 |
| $90,000 | $1,731 | $712/week (capped) | $18,516 |
| $150,000 | $2,885 | $712/week (capped) | $18,516 |
Once your income exceeds approximately $37,033/year ($712.17 × 52), you hit the cap. Everyone above this threshold receives the same maximum amount.
Tax on Parental Leave Payments
Parental leave payments are taxable income. IRD deducts PAYE at the appropriate rate. The payment is treated as regular income for the year — it’s included in your annual income for tax purposes.
If you’re on parental leave for a full year and receive no other income, your annual income may be lower, potentially resulting in a tax refund when your year-end tax assessment is completed.
KiwiSaver During Parental Leave
Your employer contributions to KiwiSaver do not automatically continue during parental leave. However:
- Your own contributions continue if you wish to make voluntary payments
- Government contributions (member tax credit) continue if you make qualifying contributions
For higher earners where the parental leave cap represents a significant income reduction, your employer may offer to continue KiwiSaver employer contributions as part of your parental leave agreement — worth negotiating.
Employer Top-Up Payments
Some NZ employers (predominantly larger corporates, the public sector, and professional services firms) offer employer-funded top-up payments that bring your parental leave pay closer to your full salary. This is not legally required but is an increasingly common part of competitive employee benefits.
When evaluating a job offer or during salary negotiations, enquire about parental leave top-up policies — the difference between a 100% top-up and no top-up can be $10,000–$30,000 for a full 26-week period.
How to Apply
Apply through Work and Income or via myMSD. Applications are ideally lodged 21 days before your leave starts but can be submitted after leave begins.