From July, the maximum weekly rate of paid parental leave will increase, the Government has announced.
The rate will rise from $661.12 to $712.17 per week - a 7.7% increase before tax.
The change reflects a rise in the average wage and will go into effect on July 1.
Associate Minister for Workplace Relations and Safety Priyanca Radhakrishnan said in a media release that it was "tough for families right now".
"The extra $51 per week will help support a large number of families, with 56,200 people receiving a payment in 2022," she said.
"The change will put an additional $51 a week into the pockets of new parents or an additional $1327 for those taking the full 26 weeks of parental leave."
The minimum parental leave payment rate for self-employed parents will increase to reflect this year's minimum wage increase.
"The minimum rate for self-employed parents will increase to $227 per week, which is equal to 10 hours of the minimum wage for an adult worker."
Last year’s percentage movement was 6.3%, resulting in an increase from $621.76 per week to $661.12.
Parents from mid-2024 will also receive a 3% government contribution to their KiwiSaver while on paid parental leave, Radhakrishnan added, provided they continue their own KiwiSaver contributions.
"This initiative in Budget 2023 recognises that child carers can see their nest egg worse off while on parental leave," she said.
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