Paid parental leave will be extended by two weeks as part of a raft of law changes which come into effect today.

Along with increasing parental leave to 18 weeks in total, it will also be extended to non-standard workers like casual and seasonal employees, and to people who've recently changed jobs.

Finance Minister Bill English. Photo: File

The increase will be the second boost to paid parental leave after it was raised from 14 to 16 weeks on April 1, 2015.

Primary carers other than biological or adoptive parents can also apply for parental leave and payments now, which includes Home for Life carers, whāngai, and grandparents raising a child in place of the child's parents.

Eligible parents of pre-term babies are also set to receive additional payments for each week their baby was born prior to the 37 week gestation period, up to a maximum of 13 weeks.

Finance Minister Bill English says these changes show all Kiwis continue to benefit from the strong, growing economy and the National-led Government's responsible policy programme.

'The April 1 measures demonstrate the Government's focus on ensuring everyone shares in the gains from a growing economy.

'Many of these changes are part of the Budget 2015 package to reduce hardship among children in New Zealand's poorest families.”

The changes also includes increasing benefit rates for families with children by $25 a week after tax which will benefit some 100,000 families with 180,000 children.

Childcare subsidy rates for 40,000 low income families will also rise from $4 to $5 an hour for up to 50 hours of childcare a week per child to reduce barriers to moving off welfare and into work

But the Government will also place stronger work expectations for beneficiary parents, explains Bill.

'From April 1 we are strengthening work requirements for parents on a benefit, requiring them to be available for work when their youngest child turns three, rather than five now.

'They will also be expected to find work for 20 hours a week rather than 15. The best thing we can do for these children is to get their parents into work.”

Also set to rise will be adult minimum wage, which goes up from $14.55 to $15.25, an increase of 3.4 per cent. This will directly benefit 152,700 workers and increase wages throughout the economy by $75 million per year.

The starting out and training hourly wage will also go up to $12.20 an hour. This is set at 80 per cent of the adult minimum wage.

'The Government's economic programme is supporting more jobs and higher incomes for New Zealand families. The average annual wage increased by 3.1 per cent in the last year to almost $58,000 and 175,000 jobs have been created in the last three years.”

From today, ACC levies will be reduced by $171 million and the earners levy, which is paid by all workers, will also drop by $61 million. On July 1, there will also be $218 million of cuts to motor vehicle levies.

Superannuation and veteran's pension payments will also increase by 2.7 per cent.

COMING INTO EFFECT ON APRIL 1:

• Benefit rates will rise by $25 a week after tax for 100,000 families.
• Working for Families payments go up to $12.50 a week for low income working families, and $24.50 for very low income working families.
• Paid parental leave will increase to 18 weeks and be extended to more workers and primary caregivers.
• Childcare assistance for 40,000 low-income families will increase
• ACC levies will fall by $232 million, with a further $218 million reduction on July 1.
• New Zealand Superannuation will increase by 2.7 per cent.
• The adult minimum wage will rise from $14.75 an hour to $15.25 an hour.