Parental leave New Zealand: what employers must provide

Published Saturday 15 August 2026

Table of contents

• What is parental leave in New Zealand?
• Types of parental leave employers need to know about
• Who's eligible for parental leave?
• Paid parental leave: what employers need to know
• Your obligations as an employer
• Keeping in touch days
• What changed from 1 July 2025?
• Common parental leave mistakes employers make
• Supporting employees returning to work
• Simplify parental leave management with Xero
• FAQs on parental leave in New Zealand

Key takeaways

• You don't pay parental leave from your own pocket; The government funds paid parental leave through Inland Revenue (IRD), not employers.
• Eligible employees can receive up to 26 weeks of government-funded payments at a maximum rate of $788.66 per week (gross), from 1 July 2025 to 30 June 2026.
• Your main obligation is to protect the employee's job; You must hold their position open for the full duration of their leave and respond to their request within set timeframes.
• Keeping in touch days allow employees on parental leave to work up to 64 hours by mutual agreement, helping them stay connected while on leave.

What is parental leave in New Zealand?

Parental leave in New Zealand gives employees time away from work to care for a new child. It covers births, adoptions, surrogacy arrangements, and whāngai care. The rules sit within the Parental Leave and Employment Protection Act 1987.

There are four main types of leave available: primary carer leave, extended leave, partner's leave, and special leave. A fifth option, negotiated carer leave, exists for employees who don't meet standard eligibility criteria.

Parental leave payments come from IRD, not from you as the employer. Your role is to manage the leave process, protect the employee's job, and meet your legal timeframes.

The Parental Leave and Employment Protection Act 1987

This Act is the foundation of parental leave rights in New Zealand. It sets out who qualifies, how long they can take, and what you must do as an employer.

The Act has been updated several times. The most recent amendments took effect from 1 July 2025, expanding eligibility for non-biological carers, recognising more types of absences toward work history requirements, and clarifying payment start dates for preterm births.

Types of parental leave employers need to know about

New Zealand law provides several types of parental leave, each with different eligibility rules, durations, and conditions. Types of parental leave include:

Primary carer leave

Primary carer leave gives the primary carer up to 26 weeks of job-protected leave to care for a new child. This leave can start up to six weeks before the expected due date or date of assumption of care.The employee must give you at least three months' written notice for a birth, or 14 days for other situations such as adoption.

Partner's leave

Partner's leave gives the non-primary carer time off around the birth or arrival of a child. Employees who meet the six-month employment test get one week. Those who meet the 12-month test get two weeks. This leave can be taken any time from 21 days before the expected due date to 21 days after the birth or assumption of care. Partner's leave is unpaid.

Extended leave

Extended leave is the bridge that allows an employee to take up to a full year away from work. It provides an additional 26 weeks of leave to supplement the initial 26 weeks of primary carer leave, increasing the total possible time off to 52 weeks.This extended leave period is unpaid, but the employee's job remains protected. The primary carer and their partner can share this extended leave between them if they both qualify.

Negotiated carer leave

Negotiated carer leave is available for employees who don't meet the standard eligibility criteria. For example, an employee who has worked for you for less than six months could request this type of leave. You and the employee negotiate the terms, including the length of leave and any conditions. As an employer, you can decline a request for negotiated carer leave, but you should consider each request fairly and in good faith and respond to the request within one month.

Special leave

Special leave provides up to 10 days of unpaid leave for pregnancy-related appointments or activity, including medical appointments, midwife visits, and antenatal classes.The employee must have worked for you for at least six months and be working at least 10 hours per week. These 10 days don't need to be taken all at once; the employee can use them as needed throughout the pregnancy.

Who’s eligible for parental leave?

Eligibility for parental leave depends on how long an employee has worked for you and how many hours they work each week. There are two main tests, plus rules for employees returning from previous parental leave.

The 6-month employment test

An employee meets the six-month test if they've worked for you for at least six months and averaged at least 10 hours per week during that time.Employees who pass this test can access the following entitlements:

• up to 26 weeks of primary carer leave, but no extended leave
• one week of partner's leave
• up to 10 days of special leave for pregnancy-related appointments

The 12-month employment test

An employee meets the 12-month test if they've worked for you for at least 12 months and averaged at least 10 hours per week during that time.Meeting this test unlocks additional entitlements:

• up to 52 weeks of total leave (26 weeks primary carer leave plus 26 weeks extended leave)
• two weeks of partner's leave
• up to 10 days of special leave for pregnancy-related appointments

Eligibility after previous parental leave

If an employee has taken parental leave before and is requesting it again, they must have returned to work and completed the full qualifying period since their last leave ended. This means six or 12 continuous months of employment, depending on which entitlements they're seeking.

Paid parental leave: what employers need to know

You don't fund parental leave payments. Government-funded parental leave payments go directly to eligible employees through IRD.

How paid parental leave works

Eligible employees receive up to 26 continuous weeks of paid parental leave from IRD. From 1 July 2025 to 30 June 2026, the maximum payment rate is $788.66 per week (gross).The maximum payment rate for the next year is usually announced in mid-to-late June to begin in July. The payment amount is based on the employee's average weekly earnings, up to the maximum rate. Payments are taxed as regular income.

Who qualifies for paid parental leave payments?

Payment eligibility is different from leave eligibility. To qualify for parental leave payments, an employee must have worked at least 10 hours per week for any 26 of the 52 weeks before the due date or date of assumption of care.

This work history can span multiple employers. Even if an employee hasn't been with you for the full qualifying period, they may still qualify for payments based on work with previous employers.

Transferring paid parental leave

The primary carer can transfer some or all of their paid parental leave weeks to their partner. The partner must also meet the payment eligibility criteria.

This transfer is a decision between the employee and their partner. You don't need to approve the transfer, but you should be aware it can happen so you understand when the employee's payments may end or shift.

Your obligations as an employer

Your main responsibilities as an employer managing parental leave centre on responding promptly, protecting the employee's position, and supporting them when they return. Here’s a more detailed rundown of how that looks:

Responding to a parental leave request

When an employee gives you written notice of their intention to take parental leave, you must respond in writing within seven days. Your response should confirm receipt and outline next steps.

You then have 21 days to formally approve the leave request and confirm the details in writing. This includes the type of leave, start and end dates, and any conditions.

Keeping the employee's position open

You must keep the employee's position open for the full duration of their parental leave. This is one of your most significant obligations.

There are limited exceptions. If the position is a key position and you can demonstrate it's not reasonably practicable to hold it open, or if a genuine redundancy situation arises, you may not need to hold the role. Even then, you must give the employee a 26-week preference period for any similar vacancy that comes up.

Providing breastfeeding facilities

When an employee returns from parental leave and requests breastfeeding facilities, you're required to provide them where it's reasonable and practicable. This could include a private space and reasonable break times.

Considering flexible work requests

Employees returning from parental leave may request flexible working arrangements. You must genuinely consider these requests and respond in writing. You can only decline if you have valid business grounds, and you need to explain those grounds in your response.

Keeping in touch days

Keeping in touch days let employees do some work during parental leave without formally ending their leave. Up to 64 hours of work is allowed over the leave period by mutual agreement.

How keeping in touch days work

An employee can work up to 64 hours total during their parental leave as keeping in touch days. These hours must not fall within the first 28 days of leave.

Both you and the employee must agree to any keeping in touch days. Neither side can require them. You pay the employee for the hours they work, and these payments don't affect their parental leave payments from IRD.

Making the most of keeping in touch days

Keeping in touch days work best when you plan them together with your employee. Consider using them for team meetings, training sessions, or project updates that help the employee stay connected.

Keep the arrangement flexible. Some employees may want regular short sessions, while others prefer a few longer days closer to their return date. Put any agreements in writing so both sides are clear on expectations.

What changed from 1 July 2025?

Several amendments to the Parental Leave and Employment Protection Act took effect from 1 July 2025. These changes expand access and clarify rules that were previously unclear. Here are some of the key changes:

Expanded eligibility for non-biological carers

The 2025 amendments extend parental leave entitlements to a wider range of non-biological carers. This includes people becoming parents through adoption, surrogacy, and situations in which the wider family raises a child, such as whāngai. These carers now have clearer pathways to access primary carer leave and paid parental leave on the same basis as biological parents.

Work hours recognition

The amendments clarify that certain absences count toward the work history needed for eligibility. Time away from work due to illness, injury, or other approved reasons can now be recognised when calculating whether an employee meets the 10-hour weekly average.

This change helps employees who had breaks in their work pattern keep their eligibility for parental leave.

Preterm baby payment clarifications

For parents of preterm babies, the amendments confirm that additional preterm baby payments sit on top of the standard 26 weeks of paid parental leave. Parents of babies born early can receive extra financial support without it reducing their core entitlement.

Payment start date changes

The amendments also clarify when parental leave payments begin for preterm births and for non-biological carers. In both cases, the payment start date now aligns more closely with when the carer actually begins looking after the child.

Common parental leave mistakes employers make

Even well-intentioned employers can get parental leave wrong. Here are the most common mistakes and how to avoid them:

Confusing leave eligibility with payment eligibility

Leave eligibility and payment eligibility are two separate things. An employee might qualify for unpaid parental leave but not for government-funded payments, or the other way around. Always assess each situation separately using the correct criteria.

Not responding within required timeframes

You have seven days to acknowledge a parental leave request and 21 days to formally approve it. Missing these deadlines can create unnecessary stress for the employee and may put you in breach of your legal obligations.

Failing to keep the position open

Some employers assume they can fill a role permanently while an employee is on leave. Unless you meet one of the narrow exceptions, you must keep the position open. Treating the role as permanently vacant can lead to a personal grievance claim.

Overlooking annual leave calculations on return

Employees continue to accrue annual leave entitlements during the first 12 months of parental leave. When they return, the annual leave calculation uses the Average Weekly Earnings (AWE) method rather than the standard approach. Getting this wrong can lead to underpayment of leave entitlements.

Supporting employees returning to work

A smooth return benefits both you and the employee. Here are some ways to plan ahead and make the transition easier for everyone:

Notice requirements

The employee must give you at least 21 days' written notice before their intended return date. If they want to come back earlier than originally planned, or extend their leave, they should let you know as soon as possible.

Flexible work arrangements

Many employees returning from parental leave value flexibility. This could mean adjusted hours, working from home, or a phased return. You're required to genuinely consider any formal flexible work request and can only decline on valid business grounds.

Creating a supportive return

Small steps can make a big difference. Consider a brief catch-up before the employee's first day back to update them on any changes. Ease them back into their workload rather than expecting full capacity on day one.

Check in regularly during the first few weeks. Ask how they're settling in and whether they need any adjustments. A supportive return builds loyalty and helps you retain experienced team members.

Simplify parental leave management with Xero

Managing parental leave alongside your regular payroll doesn't have to be complicated. Xero's payroll software helps you track employee leave balances, process pay runs accurately, and stay on top of your employer obligations.

With built-in leave management, you can record parental leave periods, monitor keeping in touch day payments, and ensure annual leave accruals are calculated correctly when your employee returns.

Ready to simplify your payroll? Get one month free

FAQs on parental leave in New Zealand

Here are answers to some of the most common questions employers have about parental leave in New Zealand:

Can both parents take parental leave at the same time?

Both parents can be on leave at the same time, but only for a limited overlap. The partner can take their one or two weeks of partner's leave during the primary carer's leave period. Beyond that, extended leave can be shared but must be taken in one continuous block per parent.

What happens if you make an employee's role redundant during parental leave?

You can make a role redundant during parental leave only if it's a genuine redundancy that would have happened regardless of the leave. You must follow a fair process and give the employee a 26-week preference period for any similar roles that become available.

What if an employee doesn't return after parental leave?

If an employee decides not to return, they should give you notice as outlined in their employment agreement. Their parental leave payments from IRD aren't affected, as those payments are separate from their employment with you.