Paid parental leave for 26 weeks

great -- but what about the rate at which we pay?

Abstract

This article examines the paid parental leave policy in New Zealand. It considers the various design elements of the policy and, in particular, the payment rate. Although the policy ostensibly provides wage replacement, paid parental leave is subject to a cap of approximately the minimum wage. This creates financial pressure for those previously earning a higher amount and may restrict its use by the higher earner in a two-parent family. The article highlights how the rate of payment compares poorly both internationally and against a local example of support for another temporary absence from employment (ACC).