Parental leave payments for eligible self-employed people

Your weekly parental leave payment as an eligible self-employed person is the greater of:

your average weekly income

the minimum parental leave payment for a self-employed person

up to a maximum of $811.05 gross a week (‘gross’ means before tax or any deductions).

The minimum parental leave payment for a self-employed person is currently $239.50 a week. This is equal to 10 hours of the minimum adult wage each week. This minimum payment is adjusted every year on 1 July to reflect the current minimum wage rate. If you’re self-employed, you’ll receive this amount if you make a loss or earn less than the minimum wage while working for at least 10 hours a week.

Minimum wage rates and types

You can choose to calculate your average weekly income (AWI) over a 6-month or 12-month period. The period ends just before:

your baby’s due date or date of birth (if you or your partner are giving birth to the baby), or

the first date you or your partner became primary carer (if you or your partner have not given birth to the baby, for example, you’re adopting a child).

Over a 12-month period, AWI is total net income from self-employment over the 12 months divided by 52.

Over a 6-month period, AWI is total net income from self-employment over the 6 months divided by 26.

Net income is total (gross) income, less expenses, but before tax.

Self-employed people: how to work out your paid parental leave entitlement – Inland Revenue (external link)

You do not have to include any weeks you did not work during the 6 or 12-month period in your AWI calculation if you were:

getting weekly ACC compensation

on parental leave before the baby’s due date, or

unable to work for any other reason that is considered by a Labour Inspector to not disrupt your normal pattern of self-employment.