Parental Leave: Payments to increase from 1 July 2025 NZ

Published 28 Jun 2025 | 2 min read

When a team member goes on parental leave, employers face immediate disruption. Adjusting rosters, planning workload coverage, and understanding leave rules can stretch already limited resources.

From 1 July 2025, new legal changes will raise payment rates and redefine eligibility under the Parental Leave and Employment Protection Act. Employers who aren't ready could face confusion, delays, or non-compliance.

What's the need for the changes?

Parental leave obligations already challenge many businesses, especially when employees are self-employed, adoptive parents, or carers in non-traditional arrangements. Unclear rules have left employers second-guessing how and when staff qualify.

Some have miscounted entitlement weeks or overlooked payment rules, despite good intentions. These situations can damage workplace trust and expose the business to risk.

The upcoming law changes aim to remove confusion, but they also place more responsibility on employers to get it right.

For example, time away from work due to ACC or unpaid absences may now still count toward qualifying for leave payments.

Preterm births will trigger new rules around how and when payments begin. Employers must update internal processes to reflect these details.

The legislation changes NZ employers need to be aware of 

From 1 July 2025:

• The maximum weekly parental leave payment increases to $788.66 gross.
• The minimum weekly payment for self-employed parents increases to $235.00 gross.
• Certain absences from work now count as hours worked when assessing eligibility.
• Preterm baby payment weeks no longer reduce the standard 26-week parental leave entitlement.
• Primary carers, including adoptive or whāngai parents, may now qualify for payments if they stop work within a reasonable timeframe.
• Start dates for payments are clarified for preterm births and for carers who are not the birth parent.

Each of these changes affects how leave is processed and communicated. HR teams must adjust eligibility checks and documentation to avoid gaps.

These changes do not alter who pays for parental leave, but they do raise the standard for employer understanding and record-keeping.

Take time now to review your parental leave policies, manager training, and leave management systems.

Getting this right proves your business values whānau while meeting legal expectations.

Use Employment New Zealand’s official resources to ensure your processes are fully up to date.