How much is the payment, and how do I calculate it?
The payment will equal your average weekly earnings over the last six or 12 months, up to the maximum of $391.28 before tax. This is the maximum paid to employees eligible for paid parental leave.
Those who make a loss, or earn less than the minimum wage for at least 10 hours work a week, are entitled to the equivalent of 10 hours a week at the highest rate of the minimum wage under the Minimum Wage Act 1983. Currently this works out at $112.50 a week before tax.
Note: Calculate your six or 12 months average earnings from the expected delivery date of your child, or the date you assume care of a child you intend to adopt.
How to calculate your Average Weekly Earnings:
For people calculating their average weekly earnings over 12 months (52 weeks) – Take your total net income over the 12 months and divide it by 52.
For people calculating their average weekly earnings over six months (26 weeks) - Take your total net income over the six months and divide it by 26.
The number of weeks you use when dividing your total net income will be reduced by the number of complete weeks you have been on parental leave, receiving ACC compensation, or unable to work due to any other relevant circumstances (as determined by a Labour Inspector).
How do I know whether to use 26 or 52 weeks to calculate my entitlement?
If you have been self-employed for less than 12 months before your expected delivery date or the date you assume care of a child you intend to adopt, then use 26 weeks to calculate your entitlement. You will need to have worked an average of at least 10 hours during the six months.
If you have been self-employed for 12 or more months before your expected delivery date or the date you assume care of a child you intend to adopt, then you have the choice of whether you use 26 or 52 weeks. Your individual circumstances will help determine the best option for you.
This page was last updated on:
02-Jul-2007
and is current. |
