Paid parental leave entitlements to go up in July

The maximum rate for paid parental leave in New Zealand will go up to $754.87 per week starting in July, the government announced this week.

This is a six per cent increase from the current $712.17 gross per week, according to Workplace Relations and Safety Minister Brooke van Velden.

Self-employed parents will also see an increase from $227 to $231.50 gross per week.

Van Velden said the hike will put "more money in the pockets of Kiwi parents" and give them extra support as they bond with their newborns.

"We know families are doing it hard right now. This Coalition-Government is committed to making sure that families and parents receive the support they need to give their new child the best start to life. Paid parental leave is one way that this is done," the minister said in a statement.

The increase is legislated under the Parental Leave and Employment Protection Act 1987, where eligible parents are mandated to receive payments equal to their normal pay, up to a set maximum rate.

This maximum rate is updated yearly based on average weekly earnings, according to the government, with eligible parents entitled to receive payments for up to 26 weeks.

"I wish to pass on my congratulations to parents and grandparents welcoming their newborns to the world. I hope the days and months ahead are filled with joy," Van Velden said. "I also wish to acknowledge that for some Kiwis accessing paid parental leave comes with heartbreak. The scheme and increase apply equally to those suffering miscarriage or stillbirth."