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Friday, October 4, 2024

Navigate parental leave payments

Parental leave payments have increased by six per cent from July 1, 2024, to reflect the rise in average weekly earnings. Photo by Colin Maynard on Unsplash

The parental leave payment is a weekly payment for one continuous period of up to 26 weeks.

These payments are to support eligible employees and self-employed people when they’re not working to take care of a new child.

This payment is made from a state-funded scheme administered by Inland Revenue. However, an employment agreement can also provide for employer-funded payments.

What you’re entitled to:

If you’ve been working for your employer for at least 10 hours a week (on average), for six months you’re entitled to take parental leave, of which there are a number of different types.

If your partner or spouse meets the requirements, you can transfer some or all of your leave time to them.

You can also apply to Inland Revenue for parental leave payments – this is separate from applying to take parental leave from your employer.

Parental leave payments have increased by six per cent from July 1, 2024, to reflect the rise in average weekly earnings.

The maximum parental leave payment rate for eligible employees and self-employed parents will increase from $712.17 to $754.87 gross per week.

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.

The minimum parental leave payment rate for self-employed parents will increase from $227.00 to $231.50 gross per week, to reflect the minimum wage increase on April 1 this year.

The minimum rate for self-employed parents is equivalent to 10 hours worked at the adult minimum wage, which is now $23.15 per hour.

  • This Solutions Column has been compiled by Vani and is a regular Times editorial from the Pakuranga Citizens Advice Bureau. Email enquiries.pakuranga@cab.org.nz or call/text WhatsApp 028 438 2188, visit us at the Library Building, Pakuranga, phone 576 8331 and at Botany Citizens Advice Bureau, rear food court entrance, Botany Town Centre, phone 271 5382 or 0800 367 222 for free, confidential and informative help.
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