New Zealand paid parental leave: payments and duration

Paid parental leave replaces qualifying income up to a published weekly cap, with a payment period separate from workplace leave rights.

Weekly maximum before tax

$811.05Inland Revenue, employee parental leave payments

Rate period

1 July 2026 to 30 June 2027Inland Revenue, employee parental leave payments

Payment duration

Up to 26 weeksInland Revenue, parental leave overview

Payment frequency

FortnightlyInland Revenue, parental leave overview

The current weekly cap

For 1 July 2026 to 30 June 2027, Inland Revenue publishes a maximum paid parental leave payment of $811.05 a week before tax. For employees, the payment is the higher of ordinary weekly pay and average weekly income, subject to that cap. The maximum is a ceiling rather than a flat payment for everyone. An employee whose qualifying weekly pay is below it receives the relevant lower amount. Inland Revenue, employee parental leave payments (opens in a new tab).

How long payments last

The ordinary payment period is up to 26 weeks. Inland Revenue pays every fortnight. Payments stop earlier if the recipient returns to work or stops being the child's primary carer. Employees and self-employed people can qualify, and stopping work is normally required, with special rules where a child comes into care at short notice. MBIE has primary responsibility for administering parental leave law; Inland Revenue handles the payments. Inland Revenue, parental leave overview (opens in a new tab).

Gross payment and the bank deposit

Paid parental leave is taxable. Inland Revenue deducts tax and applicable payments such as student loan repayments or child support before paying the net amount. It includes the payment details in the recipient's income tax assessment or IR3 return. The published weekly cap therefore describes the gross entitlement, rather than a guaranteed amount arriving in a bank account after deductions. Inland Revenue, parental leave overview (opens in a new tab).

Where Best Start fits

Qualifying Working for Families payments can continue alongside paid parental leave, except for Best Start for the new child. Best Start can begin when paid parental leave finishes. Eligible Best Start payments for previous children continue. For families receiving Working for Families as a lump sum after the tax year, Best Start is included in that lump sum. Payment timing and eligibility are separate from the parental leave cap. Inland Revenue, family payments and parental leave (opens in a new tab).

Scope of this guide

This is general information about published payments. It does not assess work-history eligibility, a self-employed person's entitlement, transfers between carers, keeping-in-touch work, preterm-baby payments or job protection. It does not calculate a household's net income during leave or establish that an employer must provide a particular period of absence. No individual entitlement or payroll deduction is calculated here.

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