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Parental Leave and Employment Protection Act 1987

Payment for parental leave - Interpretation

71CAA: Calculation of employee’s average weekly income from work

You could also call this:

“How to work out your weekly pay before having a baby or looking after a child”

When you need to figure out your average weekly income from work, you look at your pay for the last year. You find the 26 weeks where you earned the most money from all your jobs. You add up all the money you made in those 26 weeks, then divide that total by 26. This gives you your average weekly income.

The ‘last year’ means the 52 weeks right before an important date. If you’re having a baby, it’s the date your baby is due. If you’re adopting or becoming a primary carer for a child, it’s the first day you or your partner start taking care of the child.

This way of working out your average weekly income helps make sure you get a fair amount if you need to take time off work to care for a child.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6810670.

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71CA: Definition of eligible employee, or

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“Who can get parental leave if they work for themselves”

Part 7A Payment for parental leave
Interpretation

71CAACalculation of employee’s average weekly income from work

  1. An employee’s average weekly income from work must be determined by—

  2. calculating the sum of the employee’s gross weekly earnings, from all employments, for the 26 weeks out of the relevant 52-week period in respect of which the highest amounts were earned by the employee (whether or not those weeks were consecutive); and
    1. dividing the amount calculated in accordance with paragraph (a) by 26.

      1. In subsection (1), relevant 52-week period, in respect of an eligible employee, means the 52 weeks immediately preceding—

      2. the expected date of delivery of the child (in the case of a child to be born to the employee or to the employee’s spouse or partner); or
        1. the first date on which either the employee or the employee’s spouse or partner becomes the primary carer in respect of the child (in any other case).

          Notes
          • Section 71CAA: inserted, on , by section 53 of the Parental Leave and Employment Protection Amendment Act 2016 (2016 No 8).