Premature baby parental leave: Understanding your NZ entitlements
In New Zealand, 1 in 10 babies are born prematurely.
For parents, this journey can come with unique challenges. If your baby is born early, you may be eligible for additional financial support through preterm baby payments.
This guide breaks down what you need to know about these entitlements and how to access them.
What is a premature baby?
A baby is considered premature if born earlier than 37 weeks' gestation.
Preterm baby payments
If you qualify for government-paid parental leave, you can receive additional preterm baby payments if your baby arrives early. These payments are:
Paid at the same rate as your regular parental leave payments
Available for a continuous period of up to 13 weeks
Start from the day your baby is born
End on the date that would have been the end of 36 weeks' gestation (or earlier if you return to work)
Note: To qualify for government-paid parental leave, you need to have worked for an average of 10 hours a week for any 26 weeks over the previous 52 weeks immediately before your expected due date. As a recent case shows, this date is not brought forward if your child is born prematurely.
How preterm payments work with regular parental leave
There are two main scenarios:
If your baby is born prematurely before you start receiving parental leave payments:
Your preterm baby payments will begin first
Your regular parental leave payments will start after the preterm payment period ends
You can return to work between the end of your preterm payments and the start of your regular parental leave payments if you wish
If you're already receiving parental leave payments when your baby arrives prematurely:
You can apply to the IRD to pause your parental leave payments and start your preterm payments
You can resume your parental leave payments once the preterm payment period has finished
Applying for preterm payments
To apply, send proof of your baby’s date of birth and the expected due date (if not already provided) to the IRD.
You can do this via myIR:
When you apply for paid parental leave
Attached to a web message
In the section titled ‘Manage my Entitlement’
You must apply before the baby’s first birthday or before you’ve had permanent primary responsibility for the child under six for 12 months.
Keeping in touch (KIT) hours during preterm payments
Keeping in touch hours allow you to work occasionally without losing your entitlement to government-paid parental leave or preterm payments. If you receive preterm baby payments, you have additional KIT hours specifically for this period:
The total number of allowable KIT hours during the preterm baby payment period is equal to 3 hours multiplied by the number of weeks you receive the preterm payment
Working more than this allowance means you're treated as having returned to work the day after exceeding this threshold, and any preterm baby payments received after this date are considered overpayments.
This does not affect your ability to receive regular parental leave payments or use standard KIT hours during your parental leave.
Example
Mia is entitled to receive parental leave payments, and her baby arrives at 32 weeks' gestation. She is entitled to:
Receive up to 5 weeks of preterm baby payments (from 32 weeks to 37 weeks)
Work up to 15 KIT hours during this period (5 weeks × 3 hours per week)
Begin her regular parental leave payments after the preterm payment period ends
For further enquiries
While we work to keep our information current, the last word lies with the relevant government agencies:
Contact Inland Revenue (IRD) about government-paid parental leave and preterm payments.
For everything else related to parental leave entitlements, contact the Ministry of Business, Innovation and Employment (MBIE) through Employment New Zealand.
Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 1 May 2025.
Stephanie Pow
Founder and CEO, Crayon