Employment in New Zealand is governed by the Employment Relations Act 2000, the Holidays Act 2003 and the Minimum Wage Act 1983. Every employee must have a written employment agreement, and minimum rights apply even if the agreement does not mention them. Here is what employers need to know.
Minimum leave is set by the Holidays Act 2003 and the Parental Leave and Employment Protection Act 1987. The new Employment Leave Act will replace the Holidays Act from 6 August 2028; until then the current rules below apply.
Paid annual holidays once the employee has completed 12 months of continuous employment.
Paid, each year after 6 months' employment. Unused days carry over up to a maximum of 20 days.
After an average of 10 hours a week for 6 months. Eligible employees can get government-funded parental leave payments through Inland Revenue.
Paid leave each year for employees affected by family violence, plus the right to request short-term flexible working.
After 6 months' employment, employees get at least 3 days of paid bereavement leave for the death of an immediate family member or for a miscarriage or stillbirth, and at least 1 day for the death of another person where the employer accepts they have suffered a bereavement.
Set up each New Zealand leave type in IceHrm with its own accrual, carry forward and approval rules, such as the 20 day sick leave cap, including pro-rata entitlements. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Minimum wage rates apply to employees aged 16 and over. They are set by the government, reviewed every year, and usually change on 1 April.
From 1 April 2026, or NZ$958 for a 40 hour week, before tax.
Per hour from 1 April 2026, for eligible young workers entering the workforce and adults in recognised industry training.
Hours of work, and any overtime rate, are set by the employment agreement. There is no statutory overtime premium, but pay for all hours worked must not fall below the minimum wage.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so agreed overtime rates and minimum wage checks are based on what was actually worked. Time & attendance →
New Zealand taxes personal income at progressive rates. Employers deduct PAYE from each pay, along with ACC earners' levy and any KiwiSaver and student loan deductions, and report them to Inland Revenue through payday filing.
| Taxable income | Rate |
|---|---|
| NZ$0 – NZ$15,600 | 10.5% |
| NZ$15,601 – NZ$53,500 | 17.5% |
| NZ$53,501 – NZ$78,100 | 30% |
| NZ$78,101 – NZ$180,000 | 33% |
| NZ$180,001 and over | 39% |
New Zealand has no general payroll tax or social security contribution. The main employer costs on top of wages are KiwiSaver contributions and ACC levies.
Minimum compulsory contribution on gross pay for KiwiSaver members aged 16 to 64. Employers may match a temporary employee rate reduction at 3%.
Accident compensation levies depend on the industry risk classification and total earnings.
Employer superannuation contribution tax is deducted from employer KiwiSaver contributions at a rate based on the employee's earnings.
Non-cash benefits provided to employees, such as a company car available for private use, attract fringe benefit tax (FBT), payable by the employer.
Build New Zealand pay the way you already structure it, with your own salary components, deductions and formula columns, such as KiwiSaver employer and employee columns. Want to know how well IceHrm handles payroll calculations for New Zealand? Contact us or see Payroll →
Employment in New Zealand is not "at will". A dismissal must be for a good reason and follow a fair process, and employers and employees must deal with each other in good faith. An unjustified dismissal can lead to a personal grievance.
There is no statutory minimum notice period. Notice should be set out in the employment agreement; if it is not, reasonable notice must be given. Employers can agree to pay in lieu of notice or place the employee on leave during the notice period.
Final pay must include all outstanding wages and holiday pay, including any unused annual holidays.
New Zealand has 12 national public holidays, plus a regional anniversary day that depends on where the employee works. Some holidays that fall on a weekend are observed on the following Monday.
Waitangi Day and Anzac Day move to the following Monday if they fall on a weekend day the employee would not normally work. Christmas, Boxing Day and the New Year holidays follow similar rules.
Leave groups give each office its own holiday calendar, so staff in Auckland, Wellington and Canterbury get the right regional anniversary day automatically. Holiday calendars →
Every employee must have a written employment agreement, and the employer must give them the chance to seek independent advice before signing. Employees can be permanent, fixed-term or casual.
New employees complete a tax code declaration (IR330). Employers must enrol eligible new employees in KiwiSaver unless they opt out within the allowed period.
Send employment agreements for e-signing, store them on the employee's record, and track onboarding and trial period end dates with task lists so nothing is missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for New Zealand, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for New Zealand? Talk to us.
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