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- By Prime Minister Christopher Luxon
National has a long-term plan to fix the basics and build the future. At the heart of that plan are dedicated mums and dads, who balance long hours at work with the excitement and pressure that comes with raising young kids.
In June, we announced that a re-elected National Government will make unconditional KiwiSaver contributions for working mums and dads who choose to take paid parental leave, whether they are contributing themselves or not.
That’s because we know that many parents choose not to contribute to KiwiSaver during this often-expensive time, and we want to support them to keep building their savings, so they are more financially secure when they get to retirement.
Now we are taking the next step to modernise the paid parental leave system itself.
The arrival of a new baby should be one of the happiest times for families – but we know that it also comes with higher costs and tough choices.
Many parents are forced to juggle the financial impact of taking time away from work alongside a real desire to spend more time at home with their newborn.
A modern economy depends on parents being able to take the time they need with a new baby and then return to work with confidence.
That’s why, if re-elected, National will gradually increase paid parental leave to 30 weeks by 2029.
We will start with taking it to 27 weeks in July 2027, followed by increases in 2028 and 2029 to lift the entitlement to 30 weeks before the end of our second term.
National’s long-term vision is to extend paid parental leave to nine months, or 40 weeks.
We’re also making paid parental leave more flexible, recognising that every family’s circumstances are difference.
Right now, mums and dads can split their 26 weeks of paid parental leave, but they can’t take their parental leave at the same time.
Under our policy, parents will have the option to take all or some of their paid parental leave at the same time.
For example, instead of one parent taking 30 weeks of paid leave, both parents could take paid leave together for up to 15 weeks.
Or both parents could take paid leave together for four weeks; one parent could then take paid leave for 10 weeks, and then the other parent could take leave for 12 weeks.
National will also protect changes in the new Employment Leave Act that remove an unfair penalty on working mums and dads who take paid parental leave.
Annual leave is currently paid based on average weekly earnings over the previous 12 months.
That means a parent who takes a holiday in the months after returning to work from parental leave could see their holiday pay reduced because they had spent time at home caring for their child – a penalty that fell overwhelmingly on working mums.
National has pushed for changes to ensure working mums and dads receive their full holiday pay when they take annual leave in the months after returning to work, and we will ensure they take effect as legislated from July 1, 2027.
We’re backing families and backing skilled people to stay in the workforce.
It’s part of National’s plan to fix the basics and build the future for all New Zealanders.
