Paid parental leave will increase in July

The government will increase paid parental leave entitlements from the beginning of July.

Effective July 1, the maximum weekly paid parental leave rate will increase from $621.76 per week to $661.12 – a 6.3% pre-tax increase.

That equates to an approximate add-on of up to $1,040 for people taking their full 26-week leave entitlement, or about $40 more each week.

It comes as families continue to struggle with rising costs of living and food. Inflation jumped to 6.9% in the year to the March quarter of 2022.

Workplace Relations and Safety Minister Michael Wood said the changes reflected the fact that “things are difficult at the moment for many families” amid the rising cost of living.

“The extra $40 a week will help support the early days of our youngest New Zealanders and make a difference for around 20,000 New Zealand families.”

Wood said the minimum rate for the self-employed would also increase from $200 to $212 a week, or about 10 hours of minimum wage for an adult worker.

The maximum rate of paid parental leave entitlements is adjusted each year to take account of increases in average weekly earnings.

In the year to the March 2022 quarter, average weekly earnings increased 5.7% to $1,406.12 for full-time employees, including overtime.

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