Effective 1 July 2025, New Zealand increased parental leave payment rates for both employees and self-employed parents. This update is based on the Parental Leave and Employment Protection Act 1987. It directly impacts how businesses plan, support, and manage their workforce.
For global employers hiring in New Zealand, these changes are more than just financial updates — they introduce new compliance considerations. Companies that rely on distributed teams or global hiring models need to ensure they remain aligned with local employment laws, or risk non-compliance.
New Zealand Parental Leave 2025: What’s Changed from July 1
Under the parental leave system in New Zealand, eligible employees and self-employed individuals can receive financial support for up to 26 weeks in one continuous period when caring for a new child. Payments are administered by Inland Revenue.
Effective 1 July 2025, the maximum weekly parental leave payment has risen from $754.87 to $788.66 gross per week. Eligible employees and self-employed individuals receive payments equal to their normal pay, capped at this maximum rate. The maximum payment is reviewed annually under the Parental Leave and Employment Protection Act 1987, reflecting increases in average weekly earnings.
Effective 1 July 2025, the minimum parental leave payment for self-employed parents has increased from $231.50 to $235.00 gross per week. This adjustment aligns with the minimum wage increase that took effect on 1 April 2025.These payroll updates in New Zealand directly affect cost planning for employers.
Why It Matters for Global Employers
For HR leaders, CFOs, and People Operations teams, these changes underscore the complexity of navigating compliance, when employing staff across borders:
Payroll adjustments: Employers need to understand how payments interact with company payroll systems and employee benefits.
Resource planning: Extended or better-funded parental leave can affect workforce coverage and resourcing needs.
Compliance risk: Failing to account for new entitlements could result in non-compliance with New Zealand labour law.
Employee trust: Transparent communication about entitlements helps employers strengthen retention and employer branding.
Without local expertise, global companies risk missing important updates like this.
Employer of Record in New Zealand
Working with an Employer of Record (EOR) in New Zealand is one of the most effective ways to stay compliant with evolving labour laws such as the parental leave changes.
An EOR becomes the legal employer on your behalf, handling:
Compliance with local parental leave laws.
Payroll updates in New Zealand and benefits administration.
Updates to contracts and entitlements in line with annual changes.
Reducing legal and reputational risk by ensuring employees receive the benefits they are entitled to.
For companies hiring in New Zealand, or managing employees remotely, an EOR like Atlas provides the peace of mind that every compliance detail is covered.
What Employers Should Do Next
Employers, if they haven't done so already, should review HR policies, employee handbooks, and contracts to ensure they reflect the new rates. They should communicate clearly with employees about their updated entitlements.
Alternatively, partnering with an EOR in New Zealand simplifies compliance, reduces administrative burden, and helps you to stay ahead of future changes.
Supporting Your Global Workforce
At Atlas, we help businesses remain compliant with evolving employment laws in over 160 countries, including New Zealand. Whether you're hiring your first employee in New Zealand or managing a global workforce, our direct EOR solutions ensure compliance with parental leave, payroll, and benefits obligations, so you can focus on growing your business.