Payments for paid parental leave will rise from a maximum of about $504 a week to nearly $517 before tax from July 1.
The payments are adjusted each year according to changes in the average weekly wage.
Workplace Relations and Safety Minister Michael Woodhouse said this adjustment was in line with a 2.5 percent increase in average weekly earnings over the past year.
Eligible parents are paid a rate calculated on the basis of their weekly earnings, up to the maximum payment.
New figures show that Less than half of all new parents have applied for paid parental leave from the government, a trend that has been consistent over the past 10 years.
An employment lawyer wants a promise to return to a job dropped from paid parental leave rules, saying it can force employees to mislead their employers. Audio
Labour leader David Cunliffe says his party is unashamedly asking the wealthy few to contribute to giving all New Zealand children the best start possible. Audio
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