Parental Leave in New Zealand

Parental leave is the time an employee can take off work to care for a new child. In New Zealand, it is covered by the Parental Leave and Employment Protection Act 1987, which sets out the rules for who can take leave, how long it can last, and what financial support is available.

For employers, understanding parental leave is important because it affects workforce planning, compliance, and staff wellbeing. Many businesses in Auckland and across New Zealand face challenges when employees step away for extended leave. We’ve seen companies that prepare early manage the transition smoothly, while others scramble to adjust workloads at the last minute. Getting it right builds trust, strengthens culture, and supports long-term retention.
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In this guide you’ll learn:

• What parental leave is and who is eligible in New Zealand
• How long parental leave lasts, including paid and unpaid options
• How parental leave payments work, including after-tax amounts
• What employers need to know about applications, keeping in touch days, and legal obligations

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What is Parental Leave in New Zealand?

Parental leave is a legal entitlement for employees who are expecting or adopting a child. It allows parents time away from work without losing their job. The Parental Leave and Employment Protection Act 1987 protects employees during this time and sets clear rules for both employers and workers.

There are two main types:

• Paid parental leave supported by the government
• Unpaid parental leave where an employee keeps their job but does not receive payments

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Who is Eligible for Parental Leave in NZ?

Eligibility depends on how long someone has been working and how many hours they usually work. Generally, employees who have worked for the same employer for at least six months and averaged 10 hours per week can apply for leave.

For those employed longer than 12 months, extended options such as longer unpaid leave may be available. The government provides an online parental leave eligibility tool to help employees check their situation.

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Paid Parental Leave NZ: How It Works

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Paid parental leave in NZ is funded by the government, not directly by the employer. Payments are made by Inland Revenue (IRD). Employees need to apply for paid parental leave, and applications are available through Inland Revenue.

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How Much is Paid Parental Leave NZ?

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As of 2025, the maximum weekly payment is adjusted each year. Employees are paid the lesser of their normal pay or the set government maximum. Many employees ask, “How much is paid parental leave NZ after tax?” Payments are taxed as income, so the amount received will be lower after deductions like PAYE and student loan repayments.

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Employers should encourage employees to use the IRD parental leave calculator to estimate their after-tax payment.

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How Long is Paid Parental Leave in NZ?

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Currently, eligible employees can receive up to 26 weeks of paid parental leave. This applies to birth parents, adoptive parents, and in some cases, partners. Both mothers and fathers in NZ can take parental leave, though only one person can receive the paid portion at a time.

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Unpaid Parental Leave in NZ

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Unpaid leave may extend beyond the paid entitlement. Employees with longer service (12 months or more) may be entitled to up to 52 weeks of unpaid leave, on top of their paid parental leave. This provides flexibility for families who want more time at home with their child.

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Keeping in Touch Days and Returning to Work

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During parental leave, employees can work up to 64 hours in total without affecting their payments. These are called Keeping in Touch (KIT) days. They allow staff to attend training, important meetings, or ease back into work.

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Employers in Auckland often use KIT days for staff to stay connected with workplace changes. For example, one local business shared how they used KIT days to involve a team member in project updates, helping them return with confidence.

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Applying for Paid Parental Leave in NZ

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To apply, employees must:

1. Complete the application form from IRD.
2. Provide their employer with notice before going on leave (at least 3 months in most cases).
3. Submit supporting documents, such as proof of due date or adoption.

Employers should make sure processes are clear and supportive. Simple steps like reminding staff of deadlines can prevent delays in payments.

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Employer Obligations Under the Parental Leave and Employment Protection Act 1987

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Employers must:

• Hold the employee’s job open while they are on parental leave
• Comply with all notice and record-keeping requirements
• Avoid discrimination against employees taking leave

Non-compliance can result in legal issues. Following the law not only protects businesses but also shows care for employees.

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Key Takeaways for NZ Businesses

• Parental leave in NZ is governed by the Parental Leave and Employment Protection Act 1987
• Paid parental leave is up to 26 weeks, funded by IRD, and taxed as income
• Unpaid leave may extend entitlements to a full year
• Employees can use up to 64 hours of Keeping in Touch days while on leave
• Employers must keep jobs open and follow notice requirements

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