Hon Michael Wood

Minister for Workplace Relations and Safety

Paid Parental leave entitlements will increase on 1 July, resulting in up to $40 extra a week for new parents, or up to an additional $1040 for those taking the full 26 weeks of parental leave, Workplace Relations and Safety Michael Wood has announced today.

“We know things are tough right now for many families as global inflation affects prices here at home, today’s announcement will help ease some of that pressure by putting an extra $40 a week in the pockets of those taking new parents,” Michael Wood said.

“Parental leave supports expectant and new parents during some of the most important months of their babies’ lives, that’s why the Government is providing kiwi families with this helping hand.

“From Friday 1 July 2022, the maximum weekly rate of paid parental leave will be increasing from $621.76 per week to $661.12 per week, a 6.3 per cent increase before tax.

“The extra $40 per week will help support our youngest New Zealanders’ first days, and make a difference to approximately 20,000 New Zealand families,” Michael Wood said.

The minimum rate for self-employed persons will also increase to $212 per week, which is equal to 10 hours of the minimum wage for an adult worker.

“As part of our Government’s promise to better support working families with new-born and young children, eligible employees can now receive parental leave payments for up to 26 weeks following changes we introduced in 2020,” Michael Wood said.

“The Government is committed to making sure that families and parents receive the support they need to give their new child the best start at life. Paid parental leave is one way that this is done,” Michael Wood said.

The Employment New Zealand website has the most up-to-date information about parental leave, including eligibility, payments and returning to work.

Notes:

Under the Parental Leave and Employment Protection Act 1987, eligible parents are entitled to payments equal to their normal pay up to the current maximum rate. The maximum rate is adjusted annually to account for any increase in average weekly earnings.

This year’s annual percentage movement is an increase of 6.33 per cent. Last year’s percentage movement was 2.523 per cent, resulting in an increase from $606.46 per week to $621.76.

The minimum parental leave payment rate for self-employed parents will increase this year to reflect the 2022 minimum wage increase.

For more information visit Employment New Zealand – Paid Parental Leave https://www.employment.govt.nz/leave-and-holidays/parental-leave/

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