Support for families with new babies is increasing with changes to parental leave payments, Labour Minister Trevor Mallard announced today.

The maximum parental leave payment will increase from $391.28 per week to $407.36 per week from 1 July this year.  The minimum parental leave payment for self-employed people also increases from $112.50 per week to $120.00 per week.

Rates are before tax and will be adjusted automatically, so that parents already receiving payments will receive a higher payment from 1 July on. They will be advised of the increase by Inland Revenue through their regular payments letter.

"Paid parental leave assists new parents at a critical time. It's important for new parents to have the time and financial support to care for a new baby, and paid parental leave allows them to do that while protecting their jobs," Trevor Mallard said.

"Over 22,400 New Zealand parents received parental leave payments for the year ended 31 March 2008, and more than 130,000 have benefited since the scheme began in 2002.

"This government supports workers with new families, and this year we have already introduced new legislation to require employers to provide appropriate facililties and breaks for employees to breastfeed where reasonable and practicable."

The maximum rate of paid parental leave is adjusted each year to reflect any increase in average weekly earnings, as determined by the Statistics New Zealand Quarterly Employment Survey.  The minimum rate is adjusted in line with changes to the minimum wage, which this government raised to $12 an hour this year.

Eligible parents, including the self-employed, are entitled to up to 14 weeks’ paid parental leave, at a rate calculated on the basis of their average weekly earnings.