Your employees’ parental leave entitlements
In New Zealand, parental leave entitlements are governed by the Parental Leave and Employment Protection Act 1987. As an employer, understanding these regulations is crucial for compliance and for providing appropriate support to your employees.
Baseline eligibility requirements
The legislation applies to employees who are:
Giving birth to a child, or the partner of someone who is giving birth
Taking permanent responsibility for a child under the age of six (e.g., adoption)
It differentiates between two key roles:
Primary carer: By default, the person who is pregnant, or in adoption cases, the nominated caregiver
Partner: Sometimes referred to as the secondary carer
Understanding this distinction is essential, as different entitlements apply to each role. As far as the legislation is concerned, there can only be one Primary Carer at any given time during parental leave.
Fewer than 5% of men have historically become the primary carer in New Zealand, highlighting an opportunity for employers to promote more equitable parental leave practices through organisational policy and culture.
To qualify for parental leave, employees must meet three basic conditions:
Work for a New Zealand employer
Pay tax in New Zealand
Have employment that is subject to New Zealand law
Beyond these fundamentals, eligibility criteria depend on the employee's work history, calculated from their child’s expected due date or placement date.
Employment New Zealand has created this table to help people determine who is entitled to what. We’ve provided a summary below.
Primary carer entitlements
For employees with 12+ months' service (averaging at least 10 hours weekly):
10 days of unpaid special leave for pregnancy-related reasons, such as doctor appointments and scans
52 weeks of extended parental leave, including 26 weeks of primary carer leave
26 weeks of government parental leave payments (up to $754.87 weekly before tax as of July 2025)
For employees with 6-12 months' service (averaging at least 10 hours weekly):
10 days of unpaid special leave for pregnancy-related reasons
26 weeks of primary carer leave
26 weeks of government parental leave payments
For employees with less than 6 months' service or who’ve been back at work for less than 6 months since their last parental leave:
They must apply for negotiated carer leave because they are not entitled to any time off from their current employer.
Important note for subsequent children: An employee can take parental leave for each child they have, but they need to have been back at work for 6 months to be eligible for 6 months of parental leave for each child (and 12 months for 12 months of parental leave) - even if they’ve worked for the same employer for years.
Partner entitlements
For employees with 12+ months' service (averaging at least 10 hours weekly):
2 weeks of unpaid partner leave
Ability to share the primary carer leave and extended leave up to a total of 52 weeks
For employees with 6-12 months' service (averaging at least 10 hours weekly):
1 week of unpaid partner leave
Ability to share the primary carer leave and extended leave up to a total of 26 weeks
For employees with less than 6 months' service
They are not entitled to any leave.
However, if they have worked as an employee for an average of at least 10 hours a week for any 26 of the 52 weeks before their child arrives (reminder: this can be across more than one employer), they are eligible to receive up to 26 weeks of parental leave payments if:
The primary carer transfers some or all of the entitlement to them, and
They successfully apply for negotiated carer leave.
Government-paid parental leave (PPL)
Eligibility
Government-funded parental leave payments (PPL) are designed to replace the employee's normal pay up to a cap These payments are administered by Inland Revenue rather than through the employer for one continuous period of up to 26 weeks.
To qualify for PPL, primary carers must have worked an average of at least ten (10) hours a week for any 26 of the 52 weeks immediately before their child’s expected due date or placement date.
Multiple employers: It does not matter how many employers a primary carer has had during this period. They can combine the hours from multiple employers. This can also include periods when they did not work.
Self-employment: If a primary carer is both an employee and a self-employed person, they must meet this rule in either self-employment or employment. They cannot combine the hours (or weeks) they worked as an employee with the hours (or weeks) they worked as a self-employed person to reach the work requirements.
Changing employers: Even if an employee doesn't qualify for leave from your organisation, they may still be eligible for PPL if they have worked as an employee for an average of at least 10 hours a week for any 26 of the 52 weeks before their child arrives.
In these cases, employees would need to apply for negotiated carer leave, as they may not be entitled to time off from your organisation.
Payment rate
As at 1 July 2024, payments are capped at $754.87 per week gross, i.e. before any deductions such as income tax, KiwiSaver or student loan repayments. The maximum rate is adjusted annually, effective from 1 July, to account for any increase in average weekly earnings. The IRD makes payments to a nominated bank account every two (2) weeks.
More information about how the IRD calculates parental leave payments is available here.
For employers offering enhanced parental leave benefits above the statutory minimum, it's important to clearly document how your organisation's additional benefits interact with government entitlements.
Transferring PPL
A primary carer can transfer part or all of their statutory parental leave payments to their partner if:
The primary carer meets the parental leave work requirements detailed above,
The partner also meets the parental leave work requirements detailed above,
The partner stops work to become the primary carer, and
The primary carer applies to the IRD to transfer parental leave payments.
Please be aware that:
Parental leave payments can only be transferred once.
A partner’s paid parental leave period must start the day after the primary carer’s paid parental leave period ends.
Each parent's parental leave payment amount is based on their respective incomes. This means the amount a partner is entitled to could differ from the amount the primary carer is entitled to.
If the primary carer has already started receiving payments and then transfers these to their partner, the payments cannot be transferred back to them. If their partner needs to return to work early, the parental leave payments will end.
However, if the primary carer transfers their payments before they start receiving them, the payments can be transferred back to them. That means if their partner needs to return to work early, the payments can be transferred back to the primary carer before their partner returns.
Managing special circumstances
Family formation
The path to parenthood can take many forms. We have detailed employees' statutory entitlements under special circumstances and provided practical steps for supporting your team during these high-stress moments: “Parental leave in special circumstances: A guide for NZ employers.”
Job changes and protections
Employees on parental leave have significant legal protections related to their employment. These include:
Special considerations during redundancy and restructuring processes
Protection from discrimination based on pregnancy or parental status
Employers must be particularly vigilant about these protections to avoid potential legal issues and reputational damage.
Keeping in Touch (KIT) hours
In New Zealand, employees can work "Keeping In Touch" (KIT) hours while receiving government-paid parental leave. The key rules governing KIT hours:
Both the employee and employer must agree to any KIT hours worked - either one can refuse
Maximum 64 hours over the 26-week paid parental leave period
The employee may work full days, part days, or a few hours at a time
Employees are paid their normal working wage for time worked
KIT hours cannot be used within the first 28 days after the child's arrival
Exceeding 64 hours or working within the first 28 days will be considered a return to work by IRD, potentially requiring repayment of parental leave payments
If you want to give your employee this option, then it’s recommended you jointly agree on how those hours can be used, ideally before they go on parental leave.
Formal process for parental leave requests
Notification
Employees must inform employers in writing about their intention to take parental leave:
At least 3 months before their due date (for births)
At least 14 days before (for adoption or permanent responsibility of a child)
The request should specify:
The type of leave they're applying for
The intended start and end dates
Whether they intend to return to work
If they're the primary carer, whether they intend to transfer any entitlements to their partner
Large employers should consider implementing standardised forms or digital processes through HRIS systems to streamline these requests.
Employer response timeline
As an employer, you have 42 days to respond to a parental leave request, structured as follows:
7 days to ask your employee for more information (if needed)
14 days for your employee to provide the requested information
21 days to provide your formal response confirming:
Their eligibility for parental leave
Whether they can return to the same position after leave
Any relevant organisational policies or enhanced benefits
Employment NZ provides guidance here for employees and employers. For larger employers, having a documented workflow for this process ensures consistent and timely responses across the organisation.
Applying for government-paid parental leave
Employees need to apply for paid parental leave via the IRD separately.
The earliest the employee can apply is when they have the paperwork showing they’re expecting a child, such as a letter from their midwife or obstetrician or a court order.
The employee 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 a child under six for twelve months, and
Their return to work (other than KIT hours).
Return to work considerations
Employees returning from parental leave are entitled to return to the same or similar position with the same or no less favourable terms and conditions. Larger employers should consider:
Establishing a formal return-to-work process
Creating transition plans for employees returning from extended leave
Considering flexible work arrangements where operationally feasible
Providing clear guidance to line managers on supporting returning parents
For more detailed information, explore our guide for NZ employers on Managing returns from parental leave.
Avoiding common mistakes
As this comprehensive guide demonstrates, parental leave legislation in New Zealand involves numerous considerations, eligibility requirements, and procedural nuances.
To help your organisation deliver a better, more compliant parental leave experience for your employees, we recommend reading our companion article: "Common Mistakes NZ Employers Make with Parental Leave (and How to Avoid Them)."
Want to ensure your policy is clear, compliant, and competitive?
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Now for the important legal part: This guide was last updated on 11 April 2025. While we strive to provide accurate information, parental leave legislation may change. Consult with an employment law specialist for specific advice related to your organisation.
Stephanie Pow
Founder & CEO of Crayon
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