New Zealand employers face updated parental leave and ACC rates from 1 July, alongside a fresh push on sole parent hiring
A set of workplace changes take effect across New Zealand from 1 July 2026. They touch paid parental leave administration, ACC (Accident Compensation Corporation) payments, and government support for sole parents entering the workforce.
This round is narrower than April's broader cost-of-living adjustments. Even so, it carries direct action items for HR and payroll teams managing leave, claims, or recruitment pipelines.
Paid parental leave rate increases
The maximum rate for paid parental leave payments rises from $788.66 to $811.05 a week before tax. The self-employed minimum lifts from $235 to $239.50.
The increase is legislated annually under the Parental Leave and Employment Protection Act 1987. It's tied to movements in average ordinary time weekly earnings, as set out by Employment New Zealand.
Inland Revenue administers and pays these amounts directly, so the change doesn't add a direct payroll cost. It does affect any employer with a leave top-up policy calculated against the statutory maximum.
The cap parents can claim has moved, which means top-up calculations need to move with it. Some New Zealand employers have gone further still, with telco 2degrees among those topping up statutory parental leave payments well above the legislated rate to support staff and aid retention.
Ashlea Maley, associate director at employment advisory firm Peninsula...
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