Department of Labour Annual Report 2006

Case Study 3 - Paid parental leave benefits real New Zealanders

Easing the financial pressure to return to the paid  workforce and recognising the value and needs of  parents in paid work.

Wellingtonian Rachel Clements is one of the first people in New Zealand to benefit from the extension of paid parental leave to self-employed people.

The taxpayer-funded scheme was introduced for employees in 2002 and was extended to the self-employed from July 2006.

Rachel and her husband Ian celebrated the birth of their first child, Gabriella, in August this year. Rachel is self-employed in the public health consultancy field, including project management and policy development.

“Obviously I’m thrilled about my new baby. I’m also pleased that paid parental leave is available to self-employed people, now that we are on only one income. Like any new parents, we have a lot of expenses coming in for the baby.”

“Paid parental leave gives me the chance to spend more time with Gabriella, and the extra income means that there is less pressure for me to return to work straight away.”

The scheme is designed to make it easier for mothers and their partners to look after their newborns or newly adopted babies. It gives families choices and helps prevent them feeling financially pressured to go back to work too soon. A mother who is eligible for paid parental leave can transfer her entitlement to her partner if she chooses, as long as the partner is also eligible.

Since paid parental leave was introduced, more than 77,500 employees have benefited from the scheme.

“I’m also pleased that paid parental leave is available to self-employed people, now that we are on only one income.” RACHEL CLEMENTS  

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