How parental leave works in New Zealand
Parental leave can be tricky to navigate, especially when you're short on time. We've created practical resources for busy leaders to help you manage entitlements and day-to-day decisions with confidence.
Understanding statutory entitlements
Crayon helps you cut through the complexity of the Parental Leave and Employment Protection Act 1987, so you can manage parental leave in a compliant, clear, and genuinely supportive way.
FAQs
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We outline the statutory entitlements in: Your employees‘ rights and responsibilities for parental leave.
If your organisation offers additional parental leave benefits to employees, it will have its own eligibility criteria, which may be different from the government's criteria.
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They can apply as soon as they have the required information.
They must apply before the earlier of:
Their baby’s first birthday if they are giving birth or before they have had permanent primary responsibility for the child under six for 12 months, and
They return to work (other than keeping-in-touch days)
For more information: Applying for parental leave: A guide for NZ employers.
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There are two separate processes they need to complete:
Applying for leave from you, their employer, and
Applying for parental leave payments from the IRD.
For more information: Applying for parental leave: A guide for NZ employers.
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Pregnant employees are entitled to 10 days of unpaid special leave during their pregnancy. This leave can be used for pregnancy-related reasons, such as attending antenatal classes, scans or medical appointments.
Note: Some employers allow employees to work flexibly around their appointments.
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An employee can take parental leave more than once, but they need to have been back at work for 6 months to be eligible for 6 months of parental leave for each child, even if they've worked for your organisation for years (or back at work for 12 months to be eligible for 12 months of parental leave).
In addition, to receive government-paid parental leave again, they must have worked 26 weeks of the 52 weeks before their next child’s expected due date or placement date.
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If they have questions about government-paid parental leave, they will need to contact IRD.
If they have questions about your policy, they should speak to their manager or the HR team.
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The most an eligibleprimary carer can receive in paid parental leave at the time of writing (May 2025) is 26 weeks at $754.87 per week gross (i.e. before tax, KiwiSaver and other deductions). This equates to $19,627 gross.
The maximum rate is adjusted annually, effective from 1 July, to account for any increase in average weekly earnings.
For more information: Your employees’ rights and responsibilities for parental leave.
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No. The New Zealand government offers no paid partner leave. Employers may offer additional provisions.
A primary carer can transfer all or some of their parental leave payments to their partner.For more information: Your employees’ rights and responsibilities for parental leave.
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If an employee is entitled to take parental leave (i.e. they’ve worked for you for at least 6 months before their due date or placement date), you cannot deny their request.
If they are not entitled to parental leave and request negotiated leave, you can deny their request but only on the following grounds:You can’t reorganise their work by giving it to colleagues or by recruiting extra staff
Their absence reduces quality, performance or ability to meet customer demand
You are planning to make changes to their area
There will be too many extra costs
You must provide a written explanation for the reason(s) why you declined their request.
Annual leave after parental leave
Taking parental leave can reduce the value of an employee’s annual leave — a curveball many parents don’t see coming. By understanding how it works, you can help your employees plan ahead and better manager frustrating (and avoidable) surprises.
FAQs
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Yes, an employee can request to use their annual leave and other paid leave (e.g., time off in lieu) before starting parental leave, even if this means the start date of their paid parental leave period is after their child’s arrival.
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Yes, parental leave is considered continuous employment, so employees continue to accrue annual leave while on parental leave.
There is no cap on the number of annual leave days an employee can accrue.
The rate at which it is paid is affected by parental leave. See: How does parental leave affect your peoples’ annual leave.
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Yes, parental leave is considered continuous employment so employees continue to accrue sick leave while on parental leave.
Under the Holidays Act 2003, an employer can cap the maximum amount of sick leave at 20 days. You can allow employees to accumulate more than 20 days of sick leave through your employment agreement or workplace policies.
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No. If an employee is on parental leave and a public holiday falls within that period, you don’t need to pay for the public holiday because the employee would not have normally worked on that day.
Public holidays also have no impact on government-paid parental leave.
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It’s common for parents, particularly mothers, to return to work part-time after parental leave to balance career and family responsibilities.
When an employee’s work hours change, their leave balance in hours is recalculated to ensure they still receive the same number of weeks off.
For more information: How annual leave works when an employee returns part-time after parental leave.
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If the employee decides not to return after parental leave, their last day of work for the purposes of calculating annual leave payout is considered the day before they started parental leave. They wouldn't be entitled to be paid for any annual leave accrued while on parental leave.
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If an employee returns to work before resigning, the annual leave they accrued on parental leave is included in their final pay calculations.
However, the rate at which this is paid depends on when they became entitled to leave and how much leave they have accrued.
For more information: How to calculate annual leave for final pay when an employee resigns after parental leave.
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Primary carers
If employees take annual leave at the same time as government-paid parental leave, then secondary tax rates may apply (see here).
It is also possible for an employee to take annual leave during unpaid parental leave at the employer's discretion. Technically, the employee would return to work during the period that they are taking annual leave and would then take another period of extended unpaid parental leave.
If the employee decides not to return after parental leave, their last day of work for the purposes of calculating annual leave payout is considered the day before they started parental leave. They wouldn't be entitled to be paid for any annual leave accrued while on parental leave. Therefore, an employer runs the risk that the employee takes the annual leave they accrue on parental leave but then doesn't return. In this case, you will have technically paid for annual leave you didn't owe them. You might choose to take this risk in the spirit of being a good employer, particularly if they have indicated a strong willingness to return.
Partners
Since partners are not entitled to government-paid parental leave, many use annual or another paid leave (such as time in lieu) instead.
The impact of parental leave on KiwiSaver
In New Zealand, there’s a 25% KiwiSaver gender gap — and time out for parental leave is a major contributor. Find out how leading employers are tackling this head-on.
FAQs
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If you provide employer-paid leave during parental leave, then KiwiSaver employer contributions apply as per regular income.
Employers are not required to make any other KiwiSaver contributions during parental leave. Some make voluntary contributions
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By default, KiwiSaver contributions are not deducted from government-paid parental leave. However, an employee can elect to make KiwiSaver contributions from their parental leave payments. From the 1 July 2024, the government started making the equivalent of matching 'employer' contributions at 3%.
Special circumstances
Not every parental leave journey fits the standard mould. From early arrivals to health complications, we’ve created guidance to help you navigate complex situations
Return to work
Explore practical strategies and policies that help employees navigate one of the most challenging phases - and stay for the long term
Keeping in touch
Learn how to use KIT hours well — from consultation meetings to reboarding — in a way that works for both employee and employer
From scratch to upgrading
Teams all over New Zealand are asking the same questions when it comes to their parental leave policies, and we can help you answer those questions.
Need more guidance?
Our parental leave experts can help you design a policy tailored to your organisation’s unique needs or answer a curly question about parental leave.
What are employees entitled to during parental leave in New Zealand? Get clear on pay, job protection, KIT hours, and more.