Does Paid Parental Leave Affect Working for Families in NZ?

Paid Parental Leave and Working for Families in New Zealand

Both paid parental leave (PPL) and Working for Families (WfF) payments are support systems for New Zealand families, and they can interact significantly.

How PPL Affects WfF:

• Income Consideration: Your paid parental leave payments are considered taxable income and are included when the IRD calculates your family's total income for Working for Families purposes.
• Potential for Dual Eligibility: Many families who qualify for PPL will also be eligible for WfF payments, as the income during parental leave may fall within the WfF thresholds.
• Adjustments: If your income significantly changes due to PPL (e.g., moving from a higher salary to the PPL cap), your WfF entitlement might be adjusted accordingly. It's important to update your estimated income with the IRD if your financial situation changes to ensure correct WfF payments and avoid overpayments or underpayments.

The IRD aims to provide comprehensive support, and these two programmes are often designed to work together to assist new parents and families with children.