Paid Parental Leave Payments to Rise from 1 July to Support New Families

From 1 July 2025, new parents in New Zealand will receive increased financial support while on paid parental leave, with the Government raising the maximum weekly payment from $754.87 to $788.66. The adjustment reflects cost-of-living pressures and underscores the Government’s commitment to ensuring families can spend vital time with their newborns without financial strain, Workplace Relations and Safety Minister Brooke van Velden announced today.

Supporting Parents at a Critical Time

“Having those first weeks together is critical,” said Minister van Velden. “It is important to me that families receive the support they need to give their child the best start in life.”

The increase in paid parental leave (PPL) applies to parents eligible under the Parental Leave and Employment Protection Act, and the payments are available for up to 26 weeks. These leave entitlements are accessible not only to biological parents, but also to those who have become parents through adoption or surrogacy.

Boost for Self-Employed Parents

Alongside the increase for employed parents, the minimum payment rate for self-employed parents will also rise — from $231.50 to $235 gross per week. This is linked to the increase in New Zealand’s minimum wage which took effect in April, ensuring self-employed caregivers receive equitable support.

For many self-employed individuals—freelancers, sole traders, and gig workers—this minimum payment provides essential income continuity during a period when stepping away from business operations is necessary to care for a child.

Inclusive Support for All Family Journeys

The scheme acknowledges the many paths to parenthood and is designed to be inclusive of diverse family circumstances. Whether a parent has welcomed a child through childbirth, adoption, or surrogacy, they are eligible for paid parental leave.

Minister van Velden also highlighted that parents who experience miscarriage or stillbirth, and women who act as surrogates, are eligible for support.

“Women in those situations can access paid parental leave to take time away from work to recover. These experiences can be both emotionally and physically difficult, and the Government wants to ensure people are supported during that time.”

Easing Cost of Living Pressure

With many families facing financial strain amid rising living costs, the increase in paid parental leave comes as a relief for households needing stability during parental leave.

“I acknowledge it continues to be tough for families right now,” van Velden added. “Paid parental leave is one way the Government can help ease the pressure of cost of living for families when they are away from work caring for children.”

The increase will help offset living expenses during the critical first months of a child’s life, allowing parents to focus on bonding and recovery without being forced to return to work prematurely due to financial necessity.

Where to Find More Information

New and expecting parents are encouraged to visit the Employment New Zealand website, which contains the most current and comprehensive information about:

• Eligibility criteria

• How to apply for parental leave

• Payment calculations

• Returning to work options

• Employer obligations

This platform is especially helpful for those unsure about how different employment statuses (casual, part-time, or self-employed) may affect their entitlements.

Looking Ahead

While the paid parental leave scheme continues to be reviewed and adjusted annually, advocates for family wellbeing have praised the increase as a step toward better work-life balance and early childhood health outcomes. Calls continue for further expansion of parental leave duration and flexibility, especially for second caregivers and non-traditional family structures.

For now, however, the 2025 increase signals a renewed focus on family support, equity for working parents, and child wellbeing—an encouraging development for Kiwis embarking on the transformative journey of parenthood.