Quick Summary
Generally, you cannot work or earn other income during your paid parental leave period in NZ without potentially losing your entitlement. However, there are exceptions, such as 'keeping in touch' days, which allow for limited work without affecting your payments, subject to specific rules.
Details
Earning Other Income While on Paid Parental Leave in New Zealand
The primary purpose of paid parental leave (PPL) in NZ is to replace your income while you are not working to care for your new child. Therefore, there are strict rules around earning other income during this period.
General Rule:
- If you work for an employer, or are self-employed, during your paid parental leave period, it could affect your entitlement and lead to payments being stopped or clawed back by the IRD.
'Keeping in Touch' (KIT) Days:
- The scheme allows for a limited number of 'keeping in touch' days (currently up to 64 hours, though always check the latest IRD guidance) where you can work for your employer without your PPL payments being affected. These hours are designed to help you stay connected with your workplace and ease your return to work.
- These hours must be agreed upon with your employer and cannot be taken within the first 28 days after birth.
Other Income:
- Income from investments, or other passive income, generally does not affect your PPL entitlement, as long as it does not involve active work. It's crucial to distinguish between active earnings and passive income.
Always disclose any income you might earn to the IRD, or check their guidelines carefully, to avoid any issues with your paid parental leave payments.
Source: https://www.ird.govt.nz/paid-parental-leave