Premature births: A guide for NZ employers
The arrival of a premature baby brings a unique set of challenges for new parents. Between hospital stays, medical concerns, and adjusting to parenthood earlier than anticipated, your employees need additional support and understanding during this stressful time.
In New Zealand, approximately 10% of all births - around 6,000 babies - are premature each year. Of these, about 1% are born very premature (before 32 weeks), often requiring extended neonatal intensive care unit (NICU) stays and specialised medical attention.
Statutory entitlements
A baby is considered premature if born earlier than 37 weeks gestation. For employees experiencing premature births, New Zealand law provides specific entitlements to support them during this challenging time.
Preterm baby payments
Employees who qualify for government-paid parental leave (PPL) are eligible for preterm baby payments at the same rate as their PPL. The rate is currently capped at $754.87 gross weekly (as of 1 July 2024).
Key details about preterm baby payments:
Payments start immediately from the date of birth.
Available for a continuous period of up to 13 weeks.
Payments end on the date that would have been the end of 36 weeks gestation or earlier if the employee returns to work.
If an employee is already receiving PPL and has a premature baby, they can:
Pause their regular parental leave payments.
Start receiving preterm baby payments instead.
Resume their regular parental leave payments once the preterm payments end.
Employees must contact IRD directly to arrange this transition.
It's important to note that employees can return to work between the end of preterm payments and the start of regular parental leave payments if they choose to do so.
Additional keeping-in-touch (KIT) hours
Employees receiving preterm baby payments have access to additional KIT hours during the preterm baby payment period:
The total extra KIT hours = 3 hours per week multiplied by the number of weeks they receive preterm baby payments.
If an employee exceeds this limit, they are considered to have returned to work, and any further payments may need to be repaid.
These additional KIT hours do not affect the employee's ability to receive regular parental leave payments or use standard KIT hours during their parental leave.
Financial support options
Beyond the preterm baby payments, parents of premature babies may be eligible for additional support:
Travel Assistance from the Ministry of Health: Many NICU parents are entitled to Travel Assistance, a payment that helps to cover the costs of mileage, public transport, taxis, etc. The form needs to be signed by a nurse every time the parent visits the hospital, so advise employees to see the support worker as soon as possible to get the paperwork.
Accommodation assistance: Some hospitals provide accommodation for parents of babies in NICU, particularly when they live far from the hospital.
Example scenario
Situation: Emma's baby was due on May 1, but was born prematurely on February 15 at 32 weeks gestation.
Preterm payment period: February 15 to March 29 (6 weeks, which is the period from birth until what would have been the end of 36 weeks gestation)
Additional KIT hours: Emma is entitled to 18 extra KIT hours (6 weeks × 3 hours)
Regular parental leave: After March 29, Emma's regular 26 weeks of paid parental leave begins
Best practices for supporting employees
Supporting both primary carers and partners with premature babies requires special consideration:
Flexible communication: Establish how and when the employee would like to be contacted
Gradual return plan: Work with the employee to create a phased return to work
Workspace accommodations: If employees return to work while their child is still in hospital, offer private spaces for expressing breast milk or taking calls with healthcare providers
Resource connections: Provide information about support organisations for parents of premature babies, such as the list detailed on the Small Babies website.
Creating a supportive policy
Consider offering additional paid or unpaid leave beyond statutory requirements.
Primary carers: Some employers offer to top-up the preterm payments in addition to any employer-paid primary carer leave.
Partners: Unlike primary carers, partners have no statutory entitlements to additional leave, paid or unpaid, for preterm babies. While we know many employers provide support on a case-by-case basis, consider formalising this in your parental leave policy.
Want to model the investment needed to provide paid leave to parents of preterm babies at your organisation?
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 7 April 2025.
Stephanie Pow
Founder & CEO of Crayon
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