Parental Leave Payment 2027 Calculator (NZ)

What is Paid Parental Leave (PPL) in 2027?

Paid Parental Leave is a New Zealand government payment for primary carers of newborn or newly-adopted children. For the 1 July 2026 – 30 June 2027 year, the maximum PPL rate is NZ$811.05 gross per week for 26 weeks. PPL is paid at 100% of your average weekly earnings up to this maximum cap. Self-employed parents have a minimum payment equivalent to 10 hours per week at minimum wage (NZ$239.50/week from 1 July 2026). PPL is administered by Inland Revenue (IRD) — applications are filed online via the PPL portal.

How PPL is taxed and what you take home

PPL is treated as ordinary taxable income — IRD applies your declared tax code (M, ME, M SL, etc.) and deducts PAYE before paying you. At the maximum NZ$811.05/week, PAYE is approximately NZ$123 (M code), giving net of around NZ$688/week. ACC earner levy (1.67%) is also deducted. Over the full 26 weeks at maximum, total gross is NZ$21,087 and net is approximately NZ$17,535 after PAYE and the ACC earner levy.

KiwiSaver employee contributions are optional during PPL — you can opt in or out via IRD. Employers do not pay the 3% employer match while you receive PPL (your employer is not paying you wages during this period). Student loan repayments apply if you elect a SL tax code.

Example: average earner on NZ$1,200 gross/week

An employee earning NZ$1,200/week ordinarily receives the maximum PPL — NZ$811.05/week (capped). Over 26 weeks of PPL, gross income = NZ$21,087. Using tax code M, weekly PAYE is ~NZ$123.09 + ACC NZ$13.54 = NZ$136.63. Net per week = NZ$674.42. Total over 26 weeks net = NZ$17,535. After PPL ends, the parent can take up to 26 weeks unpaid extended leave (52 weeks total) and the second parent can take 2 weeks paid partner's leave (unpaid by employer).

How to use this PPL calculator

Enter your gross average weekly earnings over the 26 of the 52 weeks before baby's expected due date. Choose employee or self-employed (self-employed has a minimum NZ$239.50/week floor). Number of weeks defaults to 26 (max). Tax code adjusts the PAYE deduction. The calculator caps your PPL at NZ$811.05/week and calculates total gross + net over the period.

Paid Parental Leave Rates 2027: What Changed on 1 July 2026

PPL rates lift every 1 July in line with average weekly earnings, so the figure you were quoted while pregnant is often out of date by the time your leave starts. What matters is the rate in force on the date your leave begins — that rate then applies for your whole 26 weeks, even though a new rate arrives partway through.

The 2026–27 increase is NZ$22.39 a week, or about NZ$582 across a full 26-week entitlement. Two practical points this table does not show. First, the cap bites earlier than most parents expect: NZ$811.05 gross a week is roughly NZ$42,175 annualised, so anyone earning above that already receives the maximum and a pay rise before baby arrives will not increase their PPL. Second, if your leave straddles 1 July your payments do not step up mid-entitlement — the rate is locked at the start of your leave. Current rates and the application form are published by Inland Revenue; apply two to three weeks before your due date, because payments start from your leave date rather than your application date.

Source: ird.govt.nz — Paid Parental Leave rates effective 1 July 2026 (maximum NZ$811.05/week, self-employed minimum NZ$239.50/week). Updated August 2026.