This policy report examines the provision for parental leave for employees in New Zealand as covered by the Parental Leave and Employment Protection Act 1987 (PLEP) and proposes that the current paid parental leave (PPL) period be extended. This report addresses the current problem of the inadequate length of PPL provided in New Zealand, especially in comparison to other OECD countries. Global research suggests that PPL legislation will continue to be extended, and it appears to be acknowledged as most effective as a human resources tool supported by a much wider package of family-friendly, flexible working and work/life balance measures. It is an important issue for all stakeholders in it – employees who have children, or intending on having them; employers, and government. I am analyzing the implementation of PPL policy in a socio-economic analysis framework, analyzing the social and economic impacts (benefits and costs) that will arise from extending the current PPL scheme. My research shows that extending the current PPL scheme will produce social and economic benefits that will outweigh the minor costs. As such, I conclude that the PPL scheme in New Zealand should be extended.