Working mums and dads will benefit from National's plan to give parents more time with their babies and more choice over how they take paid parental leave.
A re-elected National Government will gradually extend paid parental leave from 26 to 30 weeks by 2029, starting with an increase to 27 weeks in next year's Budget and followed by further increases in the next two Budgets.
National will also give parents the option of taking some or all of their paid parental leave at the same time, in any order or combination up to the full entitlement.
"This is about better supporting working mums and dads as they do the vital work of raising children," National's spokesperson for Finance Nicola Willis says.
"National wants strong families, supported to give their kids the best start in life. Our modernisation of paid parental leave will support families by giving them more financial breathing space when they take on caregiving responsibilities.
"The birth of a child is an expensive time, as families juggle the costs that come with a new baby while their household income is less than when both parents are in paid work.
"Extending paid parental leave to 30 weeks will ease that pressure and give more parents the option to stay home with their baby for longer.
"This is part of National's longer-term vision to eventually extend paid parental leave to 40 weeks, equivalent to around nine months.
"Gradually increasing paid parental leave over three Budgets means this policy can be funded responsibly, consistent with National's plan to return the books to surplus and reduce government debt," Nicola Willis says.
National will modernise paid parental leave by giving parents flexibility to divide their paid leave in the way that best suits them and their family.
"Under the current law, parents are prevented from taking paid leave at the same time or in overlapping instalments," Nicola Willis says.
"These outdated restrictions are getting in the way of families doing what they think is best for their babies. National will let parents and caregivers share their paid leave entitlement and make choices that suit their family.
"For example, instead of one parent taking 30 weeks' leave, both parents could take 15 weeks together. Or they could take four weeks together, one parent could then take 10 weeks, and then the other parent could take 12 weeks after that.
"Whether a dad wants to support mum in the first few weeks after birth, or two caregivers want to share paid leave in overlapping instalments, the choice should sit with families and not restricted by outdated government rules.
"This change recognises that every family's circumstances are different and gives parents the flexibility to make the choices that suit them best," Nicola Willis says.
National's spokesperson for Women Nicola Grigg says extending paid parental leave to 30 weeks and modernising the rules will better support mums through the often demanding postpartum period.
"Extending paid parental leave to 30 weeks gives more mums the option to stay home longer, giving them more time to recover and return to work with confidence.
"Some mums might need extra help from their partner after a difficult birth and allowing parents to take paid parental leave together means their partner can be home while they recover," Nicola Grigg says.
National will also protect changes in the new Employment Leave Act so parents receive full holiday pay when taking annual leave after returning to work.
Annual leave is currently paid based on average weekly earnings over the previous 12 months, meaning a parent who takes a holiday soon after returning to work from paid parental leave can receive reduced holiday pay.
"Working mums and dads should not be penalised for caring for their baby. This change removes that unfair penalty, which has fallen overwhelmingly on working mums," Nicola Grigg says.
This change complements National's proposed KiwiSaver changes.
"Many parents stop contributing to KiwiSaver while household income is lower and costs are higher. As a result, these parents, overwhelmingly mums, miss out on the Government's matching contribution," Nicola Willis says.
"National will fix this by making a Government contribution to a parent's KiwiSaver while they're on paid parental leave, even if the parent is not contributing," Nicola Willis says.
The contribution will be made at the default rate, applied to the paid parental leave a person receives, from 1 July 2027.
"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," Nicola Willis says.
"Supporting families and backing skilled people to stay in the workforce by improving paid parental leave settings is part of National's wider plan to fix the basics and build the future for all New Zealanders," Nicola Willis says.
