Paid parental leave payments to rise in July

Source: 1News

The Government will increase paid parental leave entitlements from the start of July.

Baby (file photo).

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

That equates to an approximate addition of up to $1040 for people taking their full entitlement of 26 weeks of leave, or about $40 more every week.

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

Workplace Relations and Safety Minister Michael Wood said the changes reflected the fact that "things are rough right now for many families" amid the rising costs of living.

“The extra $40 per week will help support our youngest New Zealanders’ first days, and make a difference to approximately 20,000 New Zealand families."

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

The maximum rate for paid parental leave entitlements is adjusted every year to account for increases in average weekly earnings.

In the year to the March 2022 quarter, average weekly earnings were up 5.7% to $1406.12 for full-time employees, including overtime.