Paid Parental Leave
 

The New Zealand Scheme

  Where did we start?

1999 pre-election policies:
Labour: 6 weeks PPL funded from general taxation
Alliance: 12 weeks PPL funded from a centralised payroll levy and paid at 80 per cent of wages

What does the New Zealand scheme offer?
Parents who have been in paid employment with a single employer for 10 or more hours a week for a full year before the due birth or adoption date of a child will receive $325 gross per week (equivalent to 53% of New Zealand’s average wage or 70% of average female weekly earnings), or 100% of their previous weekly earnings, whichever is lower. Payment will be provided for 12 weeks and can be shared between eligible partners, including those in same sex relationships.

Am I eligible?
Expectant mothers who are due to give birth, or who give birth on or after July 1 2002 will qualify for Paid Parental Leave and will be able to claim payment. The Department of Labour will provide advice on how to go about this. The entitlement for unpaid parental leave will remain the same, meaning working parents meeting the criteria set out in the Parental Leave and Employment Protection Act 1987.

Will I have to return to work in 12 weeks if I take PPL?
No. Parents meeting the eligibility criteria will still be able to take extended unpaid leave of up to 52 weeks following the birth or adoption of a child. Private or voluntary arrangements between employers and employees for parental leave payments are still strongly encouraged in addition to the government scheme.

How many New Zealanders will benefit, and who gets what?
An estimated 20,000 mothers will qualify for Paid Parental Leave, about 5000 mothers who work part time and 15,000 who work full time

With the maximum payment set at $325 a week before tax, those earning up to this rate will get 100 per cent of their wages.

Women earning over this amount will receive the maximum payment.

This means up to half of women wage and salary earners will get 80 per cent of their earnings, and about 40 per cent of women will get 100 per cent.


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