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Parental leave payments to increase from 1 July

The Government announced today that parental leave payments will increase from 1 July 2016 to reflect the 2.1 per cent rise in the average weekly earnings.

The maximum weekly rate for eligible employees and self-employed parents will increase from $516.85 to $527.72 gross per week.

This reflects a 2.1 per cent rise in the average weekly earnings over the year to March 2016, as reported by Statistics New Zealand.

Under the Parental Leave and Employment Protection Act 1987, eligible parents are entitled to payments equal to their normal pay up to the current maximum. The maximum rate is adjusted annually to account for any increase in average weekly earnings.

The minimum parental leave payment rate for self-employed parents will increase this year from $147.50 to $152.50 a week.

Read the Prime Minister’s press release (external link) .

Read more about parental leave on MBIE's Employment New Zealand website.