Parental leave of up to $325/week from next July

New mothers will be eligible for 12 weeks' paid leave from next July 1, the Government announced today.

However, the amount they receive will be considerably less than the Alliance, which has pushed for paid parental leave, wanted.

Women's Affairs Minister Laila Harre and Labour Minister Margaret Wilson said women would receive a maximum payment of $325 a week before tax.

That works out to between $198.25 and $256.75 a week, depending on the tax rate.

Papers Ms Harre released in May showed various costings, most of which were based on 12 weeks' leave for mothers or two weeks for fathers when the mother is ineligible, earning up to 80 per cent of the maximum average male weekly wage of $755.40.

On that basis, the scheme would have cost between $90 million and $120 million a year.

However, the lower level announced today would cost $42 million, with other benefits already in place, such as the parental tax credit for those on low incomes, pushing the total cost to the Government to $57 million a year.

- NZPA