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You should use a secondary tax code if you receive other income at the same time as paid parental leave. You should use this for the smaller payment. This will help you avoid a tax bill at the end of the year.

Keeping in touch hours

If your employer agrees, you can use 'keeping in touch' hours while you're on paid parental leave. 

Birth date or due date (whichever is later) or date the child comes in to your care Maximum keeping in touch hours
1 July 2018 to 30 June 2020 52 hours over the 22-week paid parental leave period
On or after 1 July 2020 64 hours over the 26-week paid parental leave period

Keeping in touch hours cannot be used within the first 4 weeks after giving birth.

If you are self-employed, you can do occasional oversight or administration of your business without losing your entitlement.

For more information about what keeping in touch hours are, contact the Ministry of Business, Innovation & Employment.

Tax credits

You may be able to receive Working for Families payments while you're on parental leave.