Parental leave payments will be increased from July 1, Labour Minister Trevor Mallard says.
Maximum parental leave payments would increase from $391.28 per week to $407.36 and the minimum for self-employed people would increase from $112.50 to $120 per week.
About 22,400 parents receive parental leave.
"Paid parental leave assists new parents at a critical time. It's important for new parents to have the time and financial support to care for a new baby, and paid parental leave allows them to do that while protecting their jobs."
The maximum rate is adjusted yearly to reflect changes in average weekly earnings and the minimum rate was linked to the minimum wage.
Eligible parents can get 14 weeks paid parental leave.
