Most NZ companies 'holding firm' on parental leave policies

New report points out that New Zealand is still playing catch-up to global parental leave benchmarks

Most NZ companies 'holding firm' on parental leave policies

Most employers in New Zealand are not scaling back their parental leave policies despite economic headwinds, according to a new report, which offered encouraging findings regarding the benefit.

The New Zealand Parental Leave Register, managed by Crayon, revealed that "hundreds of employers are already doing far more" than what is legislated in New Zealand.

Eligible employees in the country are entitled to up to 26 weeks of government-funded paid parental leave, which has four main types: primary carer leave, partner's leave, extended leave, and negotiated carer leave.

Crayon's findings, based on 370 businesses that employ one in six Kiwis, show that 85% of employers have maintained their parental leave policies in the last 12 months.

Another 8 per cent improved their policies, while five per cent introduced a parental leave policy in their workplace.

According to the report, 10 employers increased weeks or improved payment timing when it comes to their primary carer leave.

Some 12 employers added two to four weeks for their paid partner leave, while nine employers added support for pregnancy loss.

Among the 92% of employers who are offering paid primary carer leave, 51% are topping up the government support, 38% are paying full salary, while three per cent offer something else.

The report stated that trends in reductions mainly related to extending qualifying time or adding bonding criteria, rather than cutting paid leave.

Only eight employers in the register tightened their policy, according to the report. In the rare case that paid leave was reduced, it was from a top-of-market starting point to mid-market, rather than being eliminated altogether.

"Despite economic headwinds, most employers are holding firm on their employee-focused policies," said Stephanie Gow, founder and CEO of Crayon, in the report.

"Employers that improved what they already offer or rolled out new policies outnumbered those that pulled back six-to-one, indicating parental leave support is here to stay."

Gaps in leave policies

Despite this progress, the report noted that New Zealand's statutory government-paid primary carer leave is at the bottom quartile among developed nations.

It also pointed out that the country does not offer statutory paid leave for partners, against the 13.4-week average for OECD nations.

The National Party has promised to gradually extend paid parental leave to 30 weeks by 2029 if it is re-elected in the November polls.

"In the 2026 election, political parties are campaigning to improve government support for parental leave, as they have in the past four elections," Gow said.

"Even with what's been proposed so far, New Zealand still has a way to go compared to our developed peers."

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