With the general election fast approaching (voting is open now!), paid parental leave has emerged as another area where New Zealand’s political parties are offering competing visions for working families.
This article focuses on National, Labour and the Green Party, which have announced the clearest proposals directly affecting paid parental leave or KiwiSaver contributions during parental leave. Other parties have emphasised broader forms of family support, rather than changes to parental leave specifically.
Taken together, the three proposals would expand parental leave entitlements or increase KiwiSaver support during parental leave, with potential implications for workforce planning, leave administration and employment costs.
So, what is being proposed, and what might the election result mean for employers?
National: More Leave and More Flexibility
National plans to progressively extend paid parental leave from 26 to 30 weeks. Under its proposal, the entitlement would increase to 27 weeks from 1 July 2027, 28 weeks from 1 July 2028, and 30 weeks from 1 July 2029. National describes this as the first step towards a longer-term goal of 40 weeks’ paid parental leave.
National’s proposal also provides scope for shared parental leave. Parents would be able to take all or some of the entitlement at the same time, including in overlapping instalments. This could mean parents taking leave together for a period, separately for another period, and then together again.
Its policy also includes a Government KiwiSaver contribution for people receiving paid parental leave, even where the person is not making their own contribution.
Labour: KiwiSaver Contribution while on parental leave
Earlier this year Labour indicated that it supported National’s proposal to extend paid parental leave to 30 weeks. However, it’s manifesto has focused on strengthening KiwiSaver, with a proposal that would make employer KiwiSaver contributions compulsory, including for people on paid parental leave.
The Green Party: 15 months of parental leave
The Greens have proposed extending paid parental leave to a total of 15 months for the primary carer at a liveable income, with flexibility for parents to take leave together during the early months of a child’s life.
What Does This Mean for Employers?
For now, employers should remember that election promises are just that. Existing parental leave obligations continue to apply unless and until legislative changes are enacted.
If National’s shared leave proposal proceeds, employers may need to prepare for employees having considerably more flexibility in how parental leave is arranged. That could have practical implications for parental leave policies, workforce planning, fixed-term cover arrangements and the administration of employees’ return to work.
There may also be KiwiSaver implications regardless of which major party leads the next Government. National proposes Government KiwiSaver contributions for people receiving paid parental leave, while Labour proposes compulsory employer contributions for people on paid parental leave from 1 July 2028.
Meanwhile, the Greens’ sweeping proposal to increase to primary carer leave to 15 months could mean that employers will be dealing with a more generous parental leave landscape in the years ahead.
With election day approaching, parental leave is therefore one area worth keeping an eye on.
If you have questions about parental leave obligations, preparing workplace policies for upcoming legislative changes, or any other employment-related matters, contact our Workplace Law team today.
