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Oct 10
Paid parental leave in NZ

Paid Parental Leave in New Zealand

Welcoming a new baby or child is an exciting (and often overwhelming) time. Whether you’re employed or self-employed, New Zealand law gives you access to Paid Parental Leave (PPL) financial support from the government to help you take time off work and bond with your new child.

In this guide, we’ll cover:

What is Paid Parental Leave?

Paid Parental Leave (PPL) is a government payment for parents taking time off work to care for a newborn or a child they’ve recently adopted or taken into permanent care.

PPL replaces some of your income while you’re not working. It’s paid by Inland Revenue (IRD), not your employer, and is funded through the government rather than your company or business.

You can receive PPL for up to 26 weeks (about six months), and one person usually claims it — either the birth mother, the primary caregiver, or their partner (if transferred).

Who can get Paid Parental Leave?

To qualify, you must have worked regularly before your baby’s due date (or the date the child came into your care). You must also take time off from work to care for your child or not be working for the period you receive the payments.

You’re eligible if you:

  • Have worked for an average of at least 10 hours a week for any 26 weeks over the last 12 months.

You can meet this test through employment or self-employment. However, if you work as both an employee and self-employed, you cannot combine the hours worked in each capacity to meet the work requirements. For example, if you only worked an average of 5 hours a week as an employee and 5 hours a week as a self-employed person, you will not qualify.

Paid Parental Leave for employees

If you’re employed, your eligibility is based on your recent work history.

Key points:

  • You must have worked at least 10 hours a week for 26 of the 52 weeks before the baby is born (or adopted).
  • You can still qualify if you’ve changed jobs during that period, as long as you didn’t take long breaks between roles.
  • You can combine the hours worked across multiple employee jobs to meet the requirements.
  • You can start your parental leave up to 6 weeks before your due date (or earlier if your baby arrives early or there are health reasons).

How much you get:

Employees are paid the lesser of:

  • Your average weekly income from your highest paid 26 weeks of the last 52 weeks before taking leave, or
  • The current maximum weekly payment rate, which is $788.66 (before tax) (as of 1 July 2025 — adjusted annually).

Your payments are taxed like regular income (PAYE). IRD pays you weekly or fortnightly directly into your bank account.

Example: You earn $1,000 a week before tax. PPL is capped at $788.66, so that’s the amount you’ll receive while on leave. If you earn $700 a week, you’ll receive your full $700 because it’s under the cap.

Paid Parental Leave for self-employed people

If you’re self-employed, you can still get PPL, even if you’re a sole trader, freelancer, or contractor.

You’re eligible if you:

  • Have been self-employed for at least 6 months,
  • Have worked an average of at least 10 hours a week, and
  • Have earned income from your self-employment during that period.

It doesn’t matter if your income fluctuates, as long as you’ve been actively running your business.

How much you get:

You’ll receive either:

  • Your average weekly net income over either the last 6 months or 12 months, or
  • The current maximum weekly payment ($788.66 before tax), whichever is lower.

Your net income is your gross income (turnover) less expenses but before tax.

There’s also a minimum payment for self-employed people who’ve earned very little, it’s $235 per week before tax (as of 1 July 2025 — adjusted annually). That means even if your business hasn’t earned much, you can still get some support.

Example: You’re self-employed and earn around $600 a week from your business. You’d receive $600 per week (because it’s below the cap). If your average income was $1,200 a week, you’d receive the capped rate of $788.66.

Transferring Paid Parental Leave to your partner

If you qualify for PPL, you can transfer some or all of it to your partner, even if they don’t meet the work requirements themselves.

Your partner can be:

  • Your spouse,
  • De facto partner, or
  • Civil union partner.

They’ll then receive the payments directly, and their name will appear on the application.

You can also split leave. For example, you take the first 20 weeks, and your partner takes the remaining 6.

How to apply for Paid Parental Leave

You can apply for PPL directly from within your myIR account.

  1. Log in to myIR to complete your PPL application.
  2. Select the ‘I want to…’ tab.
  3. Select ‘Register for Paid Parental Leave’.

Register for Paid Parental Leave

It’s best to apply before your baby is born, IRD recommends doing so at least 12 weeks before your due date.

Can you get other income while on Paid Parental Leave?

You can’t get both Paid Parental Leave and other taxable income from work at the same time — unless you’re using ‘Keeping in Touch’ hours (up to 64 hours total).

For self-employed people, you can do minimal business activity to keep things running (like replying to emails or invoicing), but you can’t earn substantial income during your paid leave.

If you receive other government payments (e.g. Working for Families or ACC), check with IRD to see how they interact with PPL.

How Solo helps self-employed parents

If you’re self-employed, managing your taxes and proving income for PPL can feel stressful, especially right before having a baby.

With Solo, your business income, tax, and ACC details are automatically tracked and calculated, making it easy to:

  • Prove your income for your PPL application,
  • Generate accurate summaries from your tax data,
  • File GST returns or income tax returns while you’re away, and
  • Keep your business running smoothly during leave.

That means less paperwork, less stress, and more time with your new arrival. Try Solo for free today.