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Parental leave: what you need to know



Paid Parental Leave (PPL) has come a long way baby! Back in 2002, when it was first introduced in New Zealand, parents and primary care givers received 12 weeks. However, as part of the current Government’s families’ package and 100-day plan, PPL was increased from 18 weeks to 22 weeks, with a further increase to 26 weeks from 1 July, 2020.

We’ve put together the basics to help you navigate your plans for PPL. Because everyone’s situation is different, this is just an outline to get you started. You can find more detailed info at the following links:  Employment New Zealand and Inland Revenue Department

Paid parental leave (PPL) is a government-funded entitlement paid fortnightly by the IRD to eligible mothers and other primary carers, such as adoptive parents, Home for Life parents, whāngai, grandparents with full-time care, and other permanent guardians.

These payments go towards the loss of income when they take parental leave or stop working to care for:

  • their newborn baby, or,
  • a child under the age of six who is now in their care.

You can qualify for paid parental leave if:

  • You have worked for at least an average of 10 hours per week for at least any 26 of the 52 weeks up to your due date or date the child comes into your care. This can be for one employer or a combination of employers even if there were periods where you did not work.
  • You have been self-employed for at least an average of 10 hours per week for at least any 26 of the 52 weeks up to your due date or date the child comes into your care.
  • If you resign or cease self-employment instead of taking leave, or while you’re on PPL, your entitlement won't be affected.

Find out more about eligibility here https://www.employment.govt.nz/leave-and-holidays/parental-leave/

Your PPL payments will be paid directly into your bank account each fortnight. The payments will be treated as income, just like your normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate that applies to you).

If you're an employee...

PPL payments equal your normal pay up to a current maximum of $564.38 a week before tax. You'll receive the average of your highest 26 of the last 52 weeks of earnings up to the date the child arrives in your care.

If you're self-employed...

PPL payments equal your average weekly earnings up to a current maximum of $564.38 a week before tax. The minimum payment is $165.00 each week before tax. If you earn less than this, or make a loss, this is what you'll receive. It's equivalent to 10 hours each week at the current minimum wage rate.

How long you can receive payments for:

Birth or due date

Maximum number of weeks

Baby is born and expected before 1 July 2018

Up to 18 weeks

Baby is born or expected on or after 1 July 2018, and is born and expected before 1 July 2020

Up to 22 weeks

Baby is born or expected on or after 1 July 2020

Up to 26 weeks

Information sourced from Employment New Zealand and the Inland Revenue Department, and updated 8 January 2019.

 



  




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