A Guide to Maternity Leave and Pay in NZ for Employers
In New Zealand the whole topic of maternity leave and pay can feel a bit tangled, but it really comes down to two separate things. First, there’s your employee’s legal right to take job-protected, unpaid leave. Second, there’s the government-funded payment they get via Inland Revenue Department (IRD) while they’re off.
As an employer, your main job is simply to approve the leave and help confirm their employment details so they can get their payments sorted.
Your essential guide to maternity leave and pay in New Zealand
When an employee shares their exciting news, it’s a great moment. But for a busy business owner, it can also set off a flurry of questions about your legal responsibilities. What exactly do you need to do? What are they entitled to? And who pays for what?
Navigating maternity leave — which is officially part of the broader ‘parental leave’ category in NZ — doesn’t have to be a maze of paperwork and stress. This guide gives you clear, straightforward answers, stripping out the jargon so you can get on with running your business.
Understanding the basics
Let’s start with a classic scenario. One of your best team members tells you they’re expecting and asks about maternity leave. This is where many Kiwi employers feel a bit stuck, worried about getting the details wrong.
The good news? The system is more straightforward than you might think. Everything is governed by the Parental Leave and Employment Protection Act 1987 (PLEPA). You don’t need to read the whole thing cover-to-cover, but knowing its core principles is vital.
At its heart, the law establishes two main things for eligible employees:
Job-protected leave: Their job, or a very similar one, has to be held open for them to come back to (unless very specific exceptions apply).
Government-funded payments: Weekly payments from IRD to support the employee financially while on leave. Crucially, this is not paid by you, the employer.
Think of it this way: your responsibility is the leave, and the government’s responsibility is the pay. This simple distinction is the key to managing the process correctly.
Your primary duties are to approve the leave for an eligible employee, hold their position (or follow the legal process if not), and provide the correct information for their payment application. The financial side is handled by the government.
By the end of this guide you’ll have a solid grasp of how maternity leave and pay works in NZ. We’ll break down who is eligible, what they get, and your specific obligations at each stage. It’s all about helping you feel confident that you can support your employee while staying compliant and protecting your business.
Understanding what your employee is entitled to
Getting parental leave entitlements right from the very beginning is a massive part of being a good employer. It’s not just about ticking a compliance box; it shows your team you’ve got their back during one of the biggest moments of their lives.
So when an employee asks about maternity leave, what they’re really asking about are the various pieces that make up New Zealand’s parental-leave package. Let’s break it all down in plain English.
In NZ, an employee’s access to both job-protected leave and government-funded payments comes down to how long they’ve been working for you (or their work record). There are two key milestones to keep in mind.
The two main eligibility tests
The parental leave system is built around two tests based on an employee’s work history with their employer up to their baby’s due date (or the date they’ll become primary carer).
The 6-month test: The employee has worked for an average of at least 10 hours a week for the 6 months immediately before the expected birth or placement date.
The 12-month test: They have worked for an average of at least 10 hours a week for the 12 months immediately before the expected birth or placement date.
Passing one of these is the first step. It’s a clear system designed to remove guesswork.
What leave do they actually get?
Once you know which test your employee meets, figuring out what they’re entitled to becomes much clearer. The system has a few different types of leave, and the official names can be a bit confusing.
Primary carer leave is what we mostly think of as ‘maternity leave’. It’s the main chunk of time off for the person who will be the main caregiver for the new child. Eligible parents can take up to 26 weeks of this leave.
Extended leave is an extra period of unpaid leave that can be taken (or shared) by one or both parents if the 12-month test is met — giving families more flexibility for a longer bonding period.
Partner’s leave is a shorter period of unpaid leave for the other parent (for example the father or partner of the primary carer). This gives them time off around the birth or early arrival of the child.
It’s worth remembering that the law uses the term “primary carer leave” rather than “maternity leave” — this is deliberately more inclusive to cover situations like adoption, whāngai and other formal care arrangements.
The amount of leave an employee gets is tied directly to whether they meet the 6-month or 12-month criteria. To simplify things, here’s a quick snapshot of how it works:
| Entitlement criteria | Eligibility requirement (same employer) | What the employee gets |
|---|---|---|
| Primary carer leave (6-month test) | Worked an average of 10+ hours/week for 6 months | Up to 26 weeks job-protected unpaid leave. |
| Full entitlement (12-month test) | Worked an average of 10+ hours/week for 12 months | Up to 52 weeks unpaid leave (26 weeks primary carer + up to 26 weeks extended leave) + entitlement to 26 weeks government-paid parental leave payments. |
As you can see, the 12-month test unlocks the full package, including that valuable extended leave.
It’s also a good moment to consider the bigger picture: as an employer, you may want to look at the employee’s total compensation package (salary, KiwiSaver, benefits) when planning for their leave and return.
Navigating these rules might seem tricky at first, but it really does come down to checking the key dates. If you find yourself with a unique situation and you’re unsure, getting expert advice can save you a world of hassle.
How parental leave payments work (and your role in it)
One of the biggest sighs of relief for employers is discovering a simple fact: you don’t pay for the core parental leave payments. They come directly from the government via IRD — not from your business.
Your role is surprisingly simple but absolutely essential. You’re the gatekeeper of information. Without your confirmation, your employee’s application can get stuck, causing unnecessary stress.
Think of yourself as the friendly official who stamps the passport — a vital step that lets the journey begin.
Your part in the payment process
When your employee applies for paid parental leave, IRD will contact you. They’ll send you a form (usually online) asking you to confirm a few details about your employee’s work situation.
Your main tasks are to:
Confirm their employment status (that they are indeed your employee).
Verify their work hours to check if they meet the eligibility test.
Confirm their earnings: you’ll need to provide information on their average weekly earnings, as this is used to calculate their payment rate.
Getting this form completed and sent back to IRD quickly is the most helpful thing you can do. It ensures your employee’s application is processed smoothly and they receive their payments on time.
How are the payments calculated?
The government calculates the payment based on the employee’s average weekly earnings, up to a cap. According to current figures (as at 1 July 2024), the maximum weekly payment for eligible parents is $754.87 (gross).
To get into the nitty-gritty of how the entitlement is worked out, you can check details on the IRD website.
Should you “top up” your employee’s pay?
You might be wondering if you can or should offer your own payment on top of the government scheme. This is known as “topping-up”.
There is no legal requirement for an employer to top up an employee’s government-funded parental leave payments. It is entirely a business decision.
However, offering an employer-funded top-up can be a powerful tool for retaining your best people. It sends a strong message that you value them and are invested in their return to work. For senior staff or those in hard-to-fill roles, this kind of support can make all the difference.
If you do decide to offer a top-up:
Create a clear policy: Who is eligible? How much will you pay, and for how long?
Be consistent: Apply the policy fairly to all eligible employees to avoid discrimination risks.
Manage the payroll: That payment will come from your business, so you’ll need to process it through your normal payroll system (including PAYE and other deductions).
Offering a top-up turns a standard legal entitlement into a valuable employee benefit, helping you stand out as an employer of choice.
Deciding on policies like top-ups and navigating the payment process may feel complex. For clear, expert advice tailored to your business, get in touch with the team at Konnect Koncepts.
A step-by-step guide to managing the leave process
A smooth parental-leave process starts the moment your employee shares their exciting news. How you handle this stage isn’t just about ticking legal boxes; it sets the tone for their entire leave and their return to the team.
Here’s a practical timeline, walking you through everything from that first chat to their first day back.
The process starts when the employee notifies you they intend to take parental leave. They must give you written notice at least three months before the expected birth date (for birth) or placement date (for adoption/permanent care).
Once you receive their notice, you now have a formal legal obligation to respond. You must respond in writing within 21 days. This response must clearly state whether they’re eligible, that their job will (or will not) be kept open, the start and end dates of their leave, and that they can ask to come back early in some circumstances
Arranging cover for their role
With the paperwork sorted, your next big job is figuring out how to cover their role. For many small- to medium-businesses that’s often the biggest headache. Planning ahead is key.
You’ve got two main options:
Hire a temporary replacement on a fixed-term contract. Just be crystal clear in the agreement that the role is temporary to cover parental leave.
Redistribute their tasks across your existing team. If this is your approach, keep a close eye on workloads to avoid burnout. You might also consider offering a temporary allowance to recognise the extra duties.
Whichever way you go, start early. The more time you have to find the right person or train your current team, the smoother the handover will be when your employee goes on leave.
Staying in touch during their leave
Maintaining connection with your employee while they’re on leave is really important for their engagement and return. It’s a delicate balance, though. The aim is to help them feel included without pressuring them to work.
A great tool for this is using ‘keeping-in-touch’ days. Under NZ law an employee can do some paid work during their unpaid or paid parental leave, only if both parties agree.
The rules: they can work up to 64 hours during their paid parental-leave period without it affecting their government payments.
Planning for their return starts long before their first day back. A quick chat a few weeks before they return is a good way to talk about their re-onboarding, fill them in on any changes, and get a feel for their expectations.
Managing the return to work and avoiding common mistakes
Bringing an employee back after parental leave is a huge moment, not just for them but for your business. Get it right and you can lock in loyalty from a talented, experienced team member. A clunky, unsupported return, however, can create serious friction and might even lead to them leaving.
The good news is that a smooth transition mostly comes down to good communication and knowing your legal obligations.
The job-protection guarantee
Your biggest legal duty is the presumption that their job is kept open for them. This is the cornerstone of parental leave legislation in NZ. You must hold their exact position (or a very similar one) for them to return to unless there’s a genuine, provable redundancy situation.
If a role is made redundant while someone is on parental leave, you must show that:
There has been a genuine, major change in business operations.
The position is genuinely no longer needed.
The decision would have been made regardless of the employee being on leave.
In short, this is a high bar to clear. Getting it wrong can result in a personal grievance claim for unjustified dismissal. It’s always best to assume the job is safe unless an undeniable, major business change occurs.
Planning a smooth re-integration
A great return-to-work experience starts weeks, or even months, before their first day back. A friendly check-in call can make all the difference, helping them feel connected and valued long before they walk back through the door.
A common topic that comes up is flexible work. Your employee has a legal right to request changes to their hours, days or place of work, and you have a legal duty to consider it seriously. (You can only refuse the request on specific business grounds).
Don’t just see this as a legal hurdle; view it as an opportunity. Offering flexibility is one of the most powerful tools you have to retain skilled parents. It builds incredible goodwill and loyalty.
As an employer, understanding what your employee is experiencing can be invaluable. You might offer helpful resources like a gentle guide for the postpartum transition or returning to work to show you’re thinking about their side of the transition too.
Common mistakes to sidestep
Even with the best intentions it’s easy to make assumptions that undermine a successful return. Watch out for these slip-ups:
Assuming they want “less”: Never assume a returning parent wants fewer hours, less responsibility or is not interested in that promotion. Always ask them directly about their career goals and keep them in the loop for growth opportunities.
Overlooking re-onboarding: Don’t just throw them in on day one. Plan their first week back. Schedule catch-ups, update them on key team and system changes, and assign a buddy if possible.
Forgetting the social side: They’ve been out of the loop for months. Make a real effort to re-introduce them, especially if there are new faces. A simple team lunch or coffee goes a long way to help them feel part of the culture again.
Ultimately, a thoughtful return reinforces that you’re an employer who supports your people through major life events. That small investment of time and empathy pays huge dividends in engagement and retention.
Frequently Asked Questions
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This is a classic question, especially for businesses that scale up and down with projects. Good news: if your employee on a fixed-term contract meets the 6- or 12-month eligibility criteria for parental leave, they absolutely get it.
The key difference, however, is that their job protection only lasts until their contract's original end date.
You're not required to extend their fixed-term agreement just because they’re on parental leave. Their employment will simply end on the agreed date, just as it would have if they’d been working the whole time.
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Yes, absolutely - and it's a very common request. An employee can ask to take annual leave either directly before their parental leave starts or right after it finishes. For example, they might want to use two weeks of paid annual leave leading up to their primary carer leave to get organised.
You just need to consider this request the same way you would any other application for annual leave. It’s a great way for employees to extend their paid time at home, and for you, it’s simply business as usual for managing holiday entitlements.
New Zealand has long been a leader with its supportive parental leave policies. With 26 weeks of paid leave, we are among the countries with the longest paid leave durations in the world, well ahead of many other developed nations. This really reflects our culture of prioritising family wellbeing and contributes to our reputation for great work-life balance.
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Partners play a vital role, and the law recognises this with specific leave just for them. Just like with the primary carer, a partner's eligibility is based on how long they've worked for you.
Here’s a quick breakdown:
6-month eligibility: An employee who has worked for you for at least six months is entitled to one week of unpaid partner's leave.
12-month eligibility: If they’ve been with you for 12 months or more, that entitlement bumps up to two weeks of unpaid partner's leave.
This leave can be taken any time in the period starting 21 days before the due date and ending 21 days after the baby arrives, giving them flexibility to be there when it counts.
Need an expert hand with parental leave?
Getting parental leave right is about more than just compliance. It’s about looking after your team during a huge life moment and making sure your business is protected. If you're feeling tangled up in the rules around maternity leave and pay, or just want to be sure your process is solid, you don’t have to go it alone.
That’s what we’re here for at Konnect Koncepts. We specialise in helping Kiwi businesses like yours get on top of employment law with zero stress. Think of us as your on-call HR department, ready with clear advice for your specific situation, a sharp eye to review your policies, and the know-how to make sure you're doing right by your people.
If you have any questions or need support with your parental leave processes, please get in touch with Konnect Koncepts.
Helpful links for NZ employers
This article reflects employment law and best practice in New Zealand as at October 2025. It is intended as general guidance only and does not replace professional legal advice tailored to your situation.
