The Cook Islands government yesterday unveiled the 2025-2026 national budget, featuring expanded social support through increased welfare, extended parental leave, higher new-born and destitute allowances, a new minimum wage, growing child benefits and a first-home builder programme.

However, some of these social benefits will take effect in July of next year.

Prime Minister Mark Brown presented the $336,135,968 National Budget in Parliament yesterday afternoon. The budget has been referred to the Public Accounts Committee for review and report.

Highlighting the theme of the 2025/26 Budget, Brown, who is also the Minister for Finance, said it was about “investing in our people, about closing their cost of living gap and supporting our people”.

He said from July 1, 2026, maternity leave will be extended from six to eight weeks for both the public and private sectors with paid leave. It will then extend to 10 weeks by July 1, 2027, 12 weeks by July 1, 2028 and 14 weeks from July 1, 2029. Brown said this is in line with international standards.

From 1 July 2025, paternity leave will also be introduced at two weeks, paid at the minimum wage. And to further ease the financial pressure on new families, Brown said the new-born allowance will increase from $1000 to $1500, also beginning 1 July 2025.

“We recognise how important it is for parents to have time with their new-borns, especially in those crucial early weeks. To support this, from 1 July 2026, paid maternity leave will gradually increase – rising by two weeks each year until it reaches 14 weeks.”

Speaking in Parliament yesterday, Brown said inflation has put real pressure on households in recent years, much of it driven by external factors beyond the country’s control.

He said last year, the Cabinet endorsed the Social Assistance Policy 2024, which has provided a roadmap for increasing support to those most in need.

“Child benefits are being extended to 17-year-old children from 1 July 2026, then up to 18-year-olds from 1 July 2027.”

The child benefit will also increase by $25 per month from July 1, 2026 and again each year for three more years until it reaches $200 per month – doubling the current rate, he said.

From 1 July 2025, destitute payments will increase from $400 per month to $500 per month “to assist those who are unable to provide for themselves financially”.

The first-home build initiative was also announced by Brown to support young people to move out of rental accommodations and move into their own home.

This is an initiative the government is developing and working on with the banks intending to help subsidise the interest rates on the home loans.

According to Brown, the “First- Home Builders Grant” is an initiative that locks in $630,000 over four years to provide targeted assistance to first homebuyers who otherwise would be unable to build their first home.

He reiterated that there is criteria to follow, as it is not designed to build mansions or to put into an Airbnb. This will begin on July 1, 2025.

According to the Ministry of Finance and Economic Management (MFEM), this initiative will include a cash grant of $13,800, paid into the loan facility of the grant recipients.

“It will be paid in five equal annual amounts ($2,760 a year for five years).” MFEM expects to open the first funding round from July this year.

The minimum wage will increase from $9.50 to $10 per hour, effective July 1, 2025. According to Brown, this change will result in an additional $900 per year for a worker employed 35 hours per week.

“This year’s Budget is not just a financial plan, it is an expression of our values. With the theme being Investing in Our People, we are continuing an important commitment to the vision that the future of our nation lies in the wellbeing and potential of our citizens.”

The national budget is slightly larger than the initial $328 million passed for the current 2024/25 financial year in June 2024, which then increased to over $396 million in the supplementary budget passed in February this year.

Also read: What is in the 2025-2026 budget?

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