Maternity and paternity leave in New Zealand: What EOR employers must know

PLEPA creates a two-tier eligibility structure based on continuous employment with the same employer immediately before the expected due date or assumption of care.

The 6 and 12-month tests govern the right to leave. The PPL payment eligibility test is separate: the employee must have worked an average of 10 hours per week in any 26 of the 52 weeks before the due date, which can be across multiple employers or include self-employment.

A recently-hired employee may therefore qualify for IRD payments even if she does not yet meet the 6-month leave threshold with the EOR.

PPL is funded entirely by the New Zealand government, paid by Inland Revenue directly to the employee. The employer does not bear any financial liability for PPL itself unless it has separately contracted to top up.

• The payment rate equals the greater of the employee’s ordinary weekly pay or average weekly income (calculated using the best 26 weeks of earnings within the 52 weeks before the due date), capped at the statutory weekly maximum.
• For the period 1 July 2025 to 30 June 2026 the cap is NZ$788.66 gross per week, up from NZ$754.87 in 2024-25. Maximum total PPL payments at the cap are NZ$20,505.16 across 26 weeks. The cap is reviewed annually and indexed to average weekly earnings, with adjustments effective each 1 July.
• For self-employed primary carers, eligibility uses the same 26-out-of-52-weeks at 10 hours per week test. Payment is calculated from self-employment income subject to the same cap, with a minimum of NZ$235.00 per week from 1 July 2025 (aligned with the minimum wage).
• PPL payments are taxable income and subject to PAYE; IRD deducts PAYE before payment. From 1 July 2024, employees who elect to have KiwiSaver deducted from their PPL also receive an IRD employer contribution of 3%, rising to 3.5% from 1 April 2026.

Where a stillbirth occurs at or after 20 weeks of gestation, the birth parent retains full entitlement to PPL payments. Bereavement leave for miscarriage or stillbirth was added to the Holidays Act 2003 by the Holidays (Bereavement Leave for Miscarriage) Amendment Bill (No 2), which entered into force on 31 March 2021 and entitles the person who experienced the loss, their partner or spouse (including same-sex couples), and parents intending to become parents through adoption or surrogacy each to 3 days of paid bereavement leave regardless of pregnancy stage.

The pre-term baby payment is a separate, additional payment for babies born before the end of 36 weeks of gestation. It is paid at the same weekly cap as PPL and runs for one extra week per week the baby is born early, up to a maximum of 13 extra weeks for babies born at or before 24 weeks. From 1 July 2025, the Amendment Bill (No 3) clarified that these weeks are explicitly additional to and do not reduce the standard 26-week PPL entitlement. An employer may therefore need to accommodate up to 39 weeks of PPL-supported leave (13 pre-term + 26 standard) plus any extended unpaid leave.

• Section 41 PLEPA gives employees the right to return to the same role after parental leave, or to a similar role on no less favourable terms if the original position no longer exists.
• Section 42 PLEPA creates a narrow “key position” exception. An employer may permanently fill the role only where the position is critical to business operations and temporary replacement arrangements are genuinely impracticable.
• Even where the key position exception applies, the employee retains a 26-week preferential re-employment period after leave ends. During that period, any substantially similar vacancy must first be offered to the returning employee.
• For employees taking four weeks of leave or fewer, the key position exception does not apply. The original role must be kept open.
• Section 49 PLEPA prohibits dismissal because of pregnancy, the intention to take parental leave, or the taking of parental leave. These protections operate alongside the Employment Relations Act 2000.
• Section 15 PLEPA provides up to 10 days of unpaid special leave during pregnancy for antenatal appointments, scans, midwife visits, and antenatal classes. The entitlement is separate from paid parental leave, sick leave, and annual leave.
• New Zealand law does not provide a separate statutory entitlement to paid time off for antenatal appointments outside the unpaid Section 15 framework.

Statutory partner’s leave is unpaid. An employee cannot receive PPL payments from IRD while on partner’s leave. New Zealand is one of only three developed OECD countries without paid statutory partner or paternity leave.

Partners wanting compensated time off must rely on employer-provided paid leave (a contractual matter), use accrued annual leave, or have the primary carer transfer some PPL to them.

New Zealand does not have a formally designated “shared parental leave” scheme, but the PPL transfer mechanism delivers a similar practical result. A primary carer can transfer all or part of their 26-week PPL entitlement to their spouse or partner, provided both independently meet the PPL work test (10 hours per week for any 26 of the 52 weeks before the due date).

The partner must stop working and assume primary responsibility for the child’s day-to-day care. The combined family entitlement remains capped at 26 weeks. PPL can only be transferred once; if the primary carer has already started receiving payments, a reverse transfer is not possible. Payment for the transferee partner is calculated independently based on the partner’s own income.

Uptake is strikingly low. Research indicates fewer than 1% of fathers and partners actually receive transferred PPL payments in New Zealand, and only around 4% utilise even the statutory unpaid partner’s leave. Beyond the statutory minimum, employer-provided paid partner leave is increasingly common: among registered NZ employers, the average partner-leave offering in 2024 was approximately 4 weeks paid.

Extended parental leave under Sections 7, 8, and 23 of PLEPA is available only to employees who satisfy the 12-month employment test. Eligible primary carers can access 26 weeks of primary carer leave plus a further 26 weeks of extended unpaid leave, creating a maximum combined entitlement of 52 weeks.

The 52-week limit applies across both parents collectively. Where both parents satisfy the 12-month test, the entitlement can be shared between them up to that combined ceiling. Where only the primary carer satisfies the 12-month threshold and the partner satisfies only the 6-month test, the partner’s portion of extended leave cannot exceed 26 weeks. Partner’s leave, being the separate 1 or 2-week entitlement, does not reduce the extended leave pool.

• Section 32 PLEPA governs notice obligations. For pregnancy-based leave, the primary carer must generally provide at least 3 months’ written notice before the expected due date. Where leave arises through assumption of care, notice must be given as soon as reasonably practicable and at least 14 days before leave begins.
• The employer must respond in writing, confirming leave arrangements and any applicable preference period protections. Employers may also request supporting documentation, including medical certificates or assumption-of-care evidence.
• Failure to provide adequate notice does not automatically remove entitlement. Inland Revenue retains discretion to accept late paid parental leave applications where reasonable grounds exist.

Adoptive parents are expressly included within the definition of a primary carer. The same 6-month and 12-month employment tests apply, alongside the standard 26-week paid parental leave (PPL) entitlement, provided the child is under 6 years old at the time care is assumed. Amendments effective from 1 July 2025 clarified that adoptive and other non-birth primary carers qualify for PPL where they stop working within a reasonable timeframe after taking primary responsibility for the child.

Whāngai carers receive equivalent treatment. Inland Revenue specifically recognises matua whāngai as qualifying non-birth primary carers where permanent primary responsibility is assumed. The framework also extends to intended parents through surrogacy, grandparents with permanent full-time care responsibilities, and permanent guardians of children under 6.

New Zealand law does not provide additional PPL entitlement for multiple births. The 26-week maximum applies regardless of the number of children born at the same time.

Section 71CB PLEPA allows employees receiving government-funded PPL to perform up to 64 hours of paid work for their employer without losing entitlement to PPL payments. KIT arrangements are voluntary and must be agreed between both parties in advance.

KIT hours cannot be worked within the first 28 days after birth unless the baby was born before the end of 36 weeks of gestation. Hours worked must be paid at the employee’s ordinary wage rate.

Exceeding the 64-hour cap, or working during the restricted 28-day period, causes the employee to be treated as having returned to work. Any subsequent PPL payments may then become repayable overpayments to Inland Revenue. KIT hours apply only during government-funded PPL and are not available during unpaid extended leave.

Many New Zealand public sector employers provide enhanced parental leave terms through collective agreements negotiated with unions including the Public Service Association, NZ Nurses Organisation, and E tū. Common enhancements include employer-funded salary top-ups during PPL, additional paid partner leave, phased return-to-work arrangements, and return-to-work lump sum payments.

The Fair Pay Agreements Act 2022 was repealed on 20 December 2023 before any sector-wide agreements were finalised. Collective bargaining therefore continues primarily at employer level rather than through industry-wide frameworks.

Sections 41 and 42 PLEPA create strong return-to-work protections for employees taking parental leave. New Zealand courts and the Employment Relations Authority interpret the “key position” exception narrowly. Permanently filling a role during parental leave and later claiming the position qualified as a key role creates significant ERA exposure for both the EOR and the client company.

Even where the exception legitimately applies, the employer must provide a 26-week period of preference for substantially similar vacancies. Employees on leave must also be included in restructuring and consultation processes to the same extent as employees actively at work.

Section 49 PLEPA, read alongside the Employment Relations Act 2000, prohibits dismissal because of pregnancy, the intention to take parental leave, or the taking of parental leave itself.

Any termination that coincides with a disclosed pregnancy or parental leave request is likely to attract heightened scrutiny from the Employment Relations Authority. Trial periods and probationary arrangements do not displace these protections. Pregnancy or parental status cannot lawfully form the basis for termination or failed probation decisions.

Under an EOR arrangement, the EOR remains the legal employer and holds the written employment agreement required under Section 65 of the Employment Relations Act 2000.

Employees apply directly to Inland Revenue for paid parental leave payments. The EOR’s obligations include confirming employment dates and average weekly hours when requested, responding promptly to IRD information requests, and maintaining accurate payroll records throughout the leave period.

Parental leave remains continuous employment and must not be processed as a termination. The EOR continues payday filing and PAYE registration obligations even where unpaid leave periods result in no salary payments. Where the EOR contractually provides salary top-ups, the EOR remains responsible for PAYE and KiwiSaver administration on the top-up portion.