Parental Leave Payment Update

Parental Leave Payment Update

What parental leave payments are

Parental leave payments are paid to support people who are taking time off work to care for a new child. They are weekly payments that are paid for a continuous period of up to 26 weeks.

These payments are government-funded and paid by Inland Revenue (IR).

What the new rates will be

• The maximum payment rate will increase from $788.66 to $811.05 (before tax) a week.
• The minimum payment rate for self-employed parents will increase from $235 to $239.50 (before tax) a week.

The minimum amount will increase in line with the minimum wage increase on 1 April 2026. It is based on 10 hours at the adult minimum wage of $23.95 per hour.

What you are paid

If you can get parental leave payments, you'll be paid the lower of either:

• Your usual weekly earnings, or
• The maximum payment rate

If you have applied for, or are receiving payments, Inland Revenue will adjust the amount automatically.

To find out more about parental leave click here 

Need Support?

If you would like help understanding how these changes may affect your business, or preparing your systems and processes, our team can provide practical, tailored advice.

For further information, contact Michael Prisk at michaelp@businesscanterbury.co.nz or reach out to our HR Advice team at hradvice@businesscanterbury.co.nz.