New Zealand
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
New Zealand
Everything you need to know about payroll, benefits & hiring top talent in New Zealand
Currency
New Zealand Dollar (NZD)
Salary payment frequency
Determined by the parties
Capital
Wellington
Time Zone
GMT +13:00
Official Languages
Māori, English, New Zealand Sign Language
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- New Zealand is an island country in the southwestern Pacific Ocean, and approximately 2,000 kilometres (1,200 mi) east of Australia across the Tasman Sea
- It has a highly developed free-market economy which ranks 52nd by nominal GDP (2020) and 63rd by PPP
- New Zealand is a developed country, which ranks highly in terms of quality of life, education, protection of civil liberties and economic freedom
- It ranks 14th on the HDI
Why Employ In New Zealand?
- The main exports from New Zealand are dairy products, meat, forest products, fruit and vegetables, and wine
- 12.92 % of the population is between the ages of 15 and 24 years, with 39.98% of the population being between the ages of 25 and 54. New Zealand has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview of the Labour Law
- The main sources of employment law in New Zealand are the Employment Relations Act, the Holidays Act, the Wages Protection Act, the Minimum Wage Act, the Parental Leave and Employment Protection Act and the Health and Safety at Work Act
- The labour regulations covers matters such as employment relationships, collective bargaining, minimum wage, working hours and leave entitlements
- Under New Zealand’s employment regulations, both employers and employees have rights and responsibilities
Fun Country Facts
- The name of the longest place in the world, found in New Zealand is Taumatawhakatangihangakoauauotamateapokaiwhenuakitanatahu
- New Zealand was the first modern-day country ever to appoint an Official National Wizard
- There are two national anthems for New Zealand
Why Use Playroll Services For New Zealand?
- Employing in New Zealand requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in New Zealand
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
KiwiSaver
Employees are automatically enrolled for the KiwiSaver scheme and may choose to opt out of the program. Calculated on gross monthly pay. The minimum contribution is 3.00%
3.00%
Employee Supperannuation Contribution Tax (ESCT)
Calculated on cash contributions to an employee’s super scheme
Salary bracket plus superannuation contributions
0.00 – 16,800.00
10.50%
16,801.00 – 57,600.00
17.50%
57,601.00 – 84,000.00
30.00%
84,001.00 – 216,000.00
33.00%
216,001 or more
30.00%
Accident Compensation Corporation (ACC)
Calculated on the gross liable earnings paid by the employer, including holiday and overtime pay
Work Levy
Varies by industry
Working Safer Levy
NZD 0.08 per NZD 100.00
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
KiwiSaver
Optional for the employee. Calculated on gross monthly pay. The default rate is 3.00% and employees may elect to contribute a higher premium up to a maximum of 10.00% of their gross monthly pay
3.00% – 10.00%
Accident Compensation Corporation (ACC)
Earner’s Levy
Calculated on gross taxable income. Calculated on a maximum salary of NZD 130,911.00
NZD 1.39 PER NZD 100.00
Personal Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
0.00 – 14,000.00
10.50%
14,001.00 – 48,000.00
17.50%
48,001.00 – 70,000.00
30.00%
70,001.00 – 180,000.00
33.00%
180,001.00 or more
39.00%
Employment Terms
General
Minimum Wage
- NZD 20.00 per hour
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Minimum of two 10 minute rest breaks and one 30 minute meal interval if working the typical working hours
- Typical working hours start at 08h30 and end at 17h00, Monday to Friday
Overtime
- There is no statutory maximum overtime hours
- The parties must determine the maximum overtime hours and the overtime pay
Notice Period
- There is no statutory notice period
- Fair and reasonable notice must be given, taking into account the length of the employment period and type of job
- 2 – 4 weeks is seen as fair and reasonable
Severance Pay
- There is no statutory severance pay
- Severance pay must be determined by the parties
Probation Period
- There is no statutory probation period
- The probation period must be determined by the parties
Bonus
- There is no statutory bonus
- Performance bonuses or incentives may be paid
Public Holidays
- January 1st – 4th – New Year’s Day
- April 15th – Good Friday
- April 18th – Easter Monday
- April 25th – Anzac Day
- June 6th – Queen’s Birthday
- June 24th – Matariki
- October 24th – Labour Day
- December 25th – Christmas Day
- December 26th – Boxing Day
- December 27th – Christmas Holiday
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid employer
- 4 weeks per year, after 12 months of continuous employment
Sick Leave
- Paid leave
- Paid by employer
- 10 days per year, after 6 months of employment
Maternity Leave
- Part of parental leave
Paternity Leave
- Part of parental leave
Parental Leave
- Paid leave
- Paid by Social Security
- 26 weeks
Bereavement Leave
- Paid leave
- Paid employer
- After being employed for 6 months
- If employee’s partner, parent, child, sibling, grandparent, grandchild, or their partner’s parent dies, miscarriage or stillbirth- 3 days per year
- If someone else has a miscarriage or stillbirth and the employee is the partner, would have been a biological parent, had agreed to be the primary carer, are the partner of a person who had agreed to be the primary carer- 3 days per year
- Death of a person outside immediate family- 1 day
Domestic Violence Leave
- Paid leave
- Paid by employer
- 10 days per year, after 6 months of continuous employment
Start hiring in New Zealand today!