What is the motherhood wage penalty in New Zealand?

New Zealand research shows that mothers who take any career break face an average wage penalty of 4.4% on return. Those who are out of paid work for more than a year face a penalty of around 8.3%. This means their hourly rate on return is lower than it would have been had they stayed in the workforce, and this gap compounds over the rest of their career.

How much does a career break cost in New Zealand?

The total cost of a career break in New Zealand depends on your salary, age, how long you take off, and your KiwiSaver settings. It usually includes the income you miss while you are off, a lower pay rate when you return, slower salary growth, and a KiwiSaver shortfall. For someone earning $80,000 and taking two years off at age 30, a rough estimate in today's dollars is often around $200,000 to $350,000.

Career Break Cost Calculator NZ 2026 | Opportunity Cost

Your details

Used to calculate salary progression, KiwiSaver growth and remaining working years

Current annual salary

Before tax (gross)

Your age

We assume work until 65

KiwiSaver contribution

Your current rate. Employer contributions are included in the calculation

Not enrolled

3%

4%

6%

8%

Expected pay rise rate

How fast does your salary typically grow each year?

Some careers move faster than others. In NZ, 3-4% is a reasonable middle-ground assumption for many professional roles.

How we calculate this: We use NZ-specific research from Motu Research and Stats NZ. The wage penalty on return (4.4% for any break, 8.3% for breaks over a year) comes from NZ labour market data. Future figures are converted back to today's dollars using 2.5% annual inflation, so the number is easier to compare to life right now.

Enter your salary and age to continue.

Your career break

Tell us about the break you are planning, or just thinking through

How long are you considering?

The break length drives most of the calculation

Return work pattern

How you plan to return affects the wage penalty

Income during your break

This reduces your direct income gap. Pick the option that feels closest to your situation

Fully paid by employer

Govt PPL only ($788/wk cap)

No income (self-employed / not eligible)

Some employers top up to full salary for the whole break. If that is you, your direct income gap is $0, although the longer-term pay and KiwiSaver impacts can still be there.

What each year out actually costs: Year one is mostly about the income you miss while you are off. After that, the longer-run cost usually comes more from slower pay growth and missed KiwiSaver than from the time off itself.

Your career break opportunity cost

All figures are in today's dollars, inflation-adjusted at 2.5%/yr

Total opportunity cost
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In today's dollars over your career

Direct income gap

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Lost earnings during leave (after PPL)

Wage penalty on return

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Lower salary on return, compounded

KiwiSaver shortfall

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Missed contributions + growth to age 65

Where the cost comes from

Direct income loss

Wage penalty on return

Missed progression

KiwiSaver shortfall

Compare break lengths in today's dollars

Putting this in perspective

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See full cost breakdown ▼

Cost component	How it's calculated	Amount (today's $)

Rough guide only, not financial advice. Wage penalty figures are based on NZ labour market research using Motu Research Institute and Stats NZ data. Real outcomes vary by industry, employer, and career path. Figures are shown in today's dollars using 2.5% annual inflation, and KiwiSaver is projected at a 5% real return. Please get proper advice before making big financial decisions.