Paid parental leave (PPL) in New Zealand is paid before tax, and what you actually “get after tax” depends on your personal tax code, student loan, KiwiSaver, and any other deductions.

Current weekly amounts (before tax)

For eligible employees and self‑employed parents, Inland Revenue pays parental leave for up to 26 weeks at your usual weekly pay, capped at a maximum rate.

  • From 1 July 2025 to 30 June 2026, the maximum paid parental leave rate is $788.66 per week before tax.
  • From 1 July 2024 to 30 June 2025, the maximum was $754.87 per week before tax.
  • If your normal weekly pay is lower than the max, you get your usual weekly pay (still before tax), not the cap.

So “how much after tax” is not one fixed figure for everyone, because PAYE is applied like normal income.

How tax works on PPL (after‑tax reality)

Paid parental leave is treated as taxable income, with standard deductions:

  • PAYE income tax is taken off, based on the tax code you put on your PPL form.
  • If you have a student loan, repayments can still be taken from your PPL payments once your income crosses the usual thresholds.
  • KiwiSaver and other deductions (if you choose them) can also come out, similar to a regular wage.

People on forums report:

“The wrong tax code could mean a tax bill, so call the IRD if you're not sure.”

That’s why one person on PPL said they were “taxed heavily” because the payment ended up being taxed as secondary income when it overlapped with their last salary payment.

Rough take‑home examples (illustrative only)

These are not official calculations, just to give a feel for “after tax”:

  • If your PPL is at the current max of $788.66/week and you’re on a mid‑range tax rate with no student loan or KiwiSaver, your take‑home might land somewhere around two‑thirds to three‑quarters of that after tax.
  • If you have a student loan and KiwiSaver, the net amount will be lower again because of extra deductions.

To get a more precise estimate for your situation, you would normally:

  1. Take the gross weekly amount you expect (your usual weekly pay or the cap $788.66, whichever is lower).
  1. Run it through an NZ PAYE calculator using your expected annual income and correct tax code.
  1. Add student loan and KiwiSaver options to see how much actually hits your bank.

Key things to check before you apply

  • Your eligibility (need at least 26 weeks of work in the 52 weeks before baby, for at least 10 hours per week).
  • Whether your employer offers any extra “top‑up” to bring you closer to your usual salary on top of government PPL.
  • The tax code you should use on the PPL form, especially if you’re finishing work and starting PPL in the same tax year.

If you tell the exact weekly amount you expect and whether you have a student loan or KiwiSaver, a rough after‑tax ballpark can be walked through step by step.