Paid Parental Leave
Paid parental leave (PPL) is a government-funded entitlement paid to eligible primary carers and adoptive parents when they take parental leave from their job(s) to care for their new-born or adopted child under the age of six.
These payments go towards the loss of income that primary carers and adoptive parents experience when they take this parental leave.
How much are PPL payments:
For employees, PPL payments equal your normal pay up to a current maximum of $712.17 a week before tax.
For self-employed persons, PPL payments equal your average weekly earnings up to a current maximum of $712.17 a week before tax. If the self-employed person makes a loss or earns less than the minimum wage, for at least 10 hours work a week, the payment is $227.00 each week before tax. This is equivalent to 10 hours each week at the current minimum wage rate.
How long can the employee receive PPL payments for:
If the eligible employee has a baby or adopts a child under the age of six, then the employee can receive PPL payments for a maximum of 26 weeks.
How PPL is paid:
Inland Revenue will pay PPL payments directly into the employee’s bank account each fortnight. The payments will be treated as income, just like normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate that applies to the employee). It will not have earners’ levy deducted from it.
Employees can work limited Keeping in Touch (KIT) hours during their PPL without losing their entitlement. Employees can work up to 64 hours over the parental leave term, as long as it is not within the first 28 days after the child is born.