Skip to main content

Queen Elizabeth II Memorial Day, Monday 26 September Our phone lines and offices are closed, but you can still get in touch with us. Find out more

Delays to response times: It's taking longer than usual to answer calls and myIR messages, including for unclaimed money. You may be able to use self-service options in myIR. You can also find information on our website by typing in what you want to do in the search bar. Thank you for your understanding. Log in to myIR

Changes to the myIR login screen are coming You will not be able to use myIR between 1pm Saturday 8 October and 8am Monday 10 October. This is so we can update our external authentication system. From Monday 10 October the myIR login page will have a new look and feel, but the login process will not change.

When
Paid each fortnight.

We’ll make paid parental leave payments to your bank account each fortnight. We’ll treat these payments like any other income and deduct tax and any other payments, for example student loan and child support. If you would like to make KiwiSaver contributions from your parental leave payments, you can.

KiwiSaver and paid parental leave

How much your parental leave payments will be

If you're an employee, your payments will match your ordinary weekly pay or your average weekly income up to a maximum:

  • $661.12 a week before tax for the 1 July 2022 to 30 June 2023 period
  • $621.76 a week before tax for the 1 July 2021 to 30 June 2022 period.

If you're self-employed, your payments will be one of the following:

  • either your average weekly self-employed income up to maximum of:
    • $661.12 a week before tax for the 1 July 2022 to 30 June 2023 period
    • $621.76 a week before tax for the 1 July 2021 to 30 June 2022 period.
  • or a minimum payment of:
    • $212 a week before tax for the 1 July 2022 to 30 June 2023 period
    • $200 a week before tax for the 1 July 2021 to 30 June 2022.

You'll receive at least the equivalent of 10 hours a week at the minimum wage.

How we work out employees' estimated income from employment

If you're an employee, we calculate your ‘ordinary weekly pay’ and ‘average weekly income’ and then use the higher of the 2 to get your estimated income. These amounts are calculated as follows.

Ordinary weekly pay

  • Depending on how often you are paid, we'll take your last 4 weeks’, 2 fortnights’, or 1 months' earnings and divide by 4.

Average weekly income

  • We take your highest 26 weeks' worth of income from the last 52 weeks before the child’s expected due date or date of birth, or date the child came into your care, and divide by 26.

You can find additional information on the Employment New Zealand website.

Amount of parental leave payment - employment.govt.nz

If you have non-standard working arrangements, such as multiple jobs and variable hours, this calculation may not be accurate. If you follow the Employment New Zealand guidance and determine that your income is different to the prepopulated estimate, you can update this figure.

How to work out your weekly income if self-employed

If you're self-employed you need to calculate your own average weekly income. You can choose whether to calculate your average weekly income over a 12-month or 6-month period. This period ends just before the child’s due date/ birthdate, or the date the employee or their partner becomes the primary carer.

  • You can work out your average weekly income over a 12-month period, by dividing your last 12 months net self-employed income by 52.
  • For your average weekly income over a 6-month period, divide your last 6 months net self-employed income by 26.

The rate applied is based on the higher of these 2 calculations. Net income is your Gross income less expenses but before tax.

Calculations for when you have more than 1 job

If you receive income from more than 1 job, you can add together the income from all your employers to work out your ordinary or weekly average pay. However, if you receive income from employment and self-employment you can not combine this income to determine your ordinary or weekly average.

Receiving other income

You cannot continue to work while receiving paid parental leave. But you can continue to get certain types of income and keep your entitlement to paid parental leave, such as:

  • top-up payments from your employer to supplement your parental leave entitlements
  • payments for Keeping In Touch (KIT) hours
  • payments for any work done before starting paid parental leave.

You need to use a secondary tax code if you receive other income at the same time as parental leave payments. Whichever payment is smaller should be taxed at the secondary rate.

Using the right tax codes will help you avoid a tax bill at the end of the year.

Tax codes and rates for individuals

Working for Families payments

You may be able to get Working for Families payments while you're on parental leave. You cannot get the Best Start payment until paid parental leave finishes.

Can I get Working for Families?

Best Start payments and Paid parental leave

Sam and Terry's baby is born on 10 July 2021. Sam applies for paid parental leave (PPL) in August 2021.

Sam receives a lump sum payment for the period from 10 July until their application is processed on 26 August. They then get fortnightly payments from 26 August until 8 January 2022 - the end of the 26 weeks PPL entitlement. (which started from 10 July).

Sam is entitled to Best Start payments from 9 January 2022.

Last updated: 26 May 2022
Jump back to the top of the page