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New Zeland Dollar (NZD)
EOR IN New Zealand
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A guide to employing and growing your team in New Zealand
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New Zealand offers a stable, transparent, and highly developed economy with a strong focus on tourism, agriculture, and a burgeoning technology sector. The labor market is governed primarily by the Employment Relations Act 2000 and the Holidays Act 2003, emphasizing “good faith” relationships between employers and employees. New Zealand is known for its high quality of life and progressive work-life balance policies. As of April 1, 2026, the national adult minimum wage in New Zealand is $23.95 per hour.
Employer Contributions
KiwiSaver (retirement savings): 3% (minimum, if employee is enrolled)
Accident Compensation Corporation (ACC levy): ~1% to 3% (varies by industry risk)
Total Employer Contribution: ~4% to 6%
Employee Payroll Taxes
KiwiSaver: 3% (minimum) (can opt for higher rates like 4%, 6%, 8%, 10%)
Total Employee Contribution: 3% (minimum, if enrolled)
Employee Income Tax Rates
$0 – $15,600: 10.5%
$15,601 – $53,500: 17.5%
$53,501 – $78,100: 30%
$78,101 – $180,000: 33%
$180,000+: 39%
Statutory Leave
In New Zealand, employees are entitled to a minimum of 20 days (4 weeks) of annual leave after 12 months of continuous employment. There are 11 public holidays per year, and if an employee works on a public holiday, they are entitled to time-and-a-half pay and a day in lieu. Unused leave can generally be carried forward, subject to agreement.
Pregnancy and Maternity Leave
In New Zealand, employees are entitled to up to 52 weeks of unpaid parental leave, with government-funded payments available for up to 26 weeks for eligible primary carers.
Paternity Leave
In New Zealand, fathers or partners are entitled to up to 2 weeks of unpaid paternity leave, with certain eligibility requirements.
Work-Related Injury Leave
In New Zealand, other types of leave include:
Sick Leave: Employees are entitled to 10 days of paid sick leave per year after 6 months of continuous employment. This leave can accumulate up to 20 days.
Bereavement Leave: Employees are entitled to 3 days of paid bereavement leave on the death of a close family member. Additional leave may be granted at the employer’s discretion.
Work Injury Leave: Employees injured at work are covered by the Accident Compensation Corporation (ACC) for compensation, which includes wage replacement and medical costs.
Public Holiday Leave: Employees are entitled to 11 public holidays each year. If employees work on a public holiday, they are entitled to time-and-a-half pay and a day in lieu.
Special Leave: This includes leave for personal circumstances such as jury duty or voting. Employers are generally required to grant leave in these situations, but it may be unpaid depending on the situation and employer policies.
Termination Process
Termination must be fair, follow a process of “good faith,” and be supported by a valid reason (e.g., redundancy, misconduct, or performance). Employers must investigate the matter, provide the employee with the information being considered, and allow the employee a reasonable opportunity to comment before any decision is made. A written notice periodwhich must be “reasonable”is typically defined in the employment agreement (often 4 weeks). Summary dismissal without notice is only permissible in cases of serious misconduct.
Notice Period
Notice periods are typically determined by the employment agreement. While there is no fixed statutory minimum notice period for all roles, a period of 2 to 4 weeks is commonly considered fair and reasonable in the New Zealand labor market. Both the employer and the employee must adhere to the notice period specified in their written contract.
Probation Period
There is no statutory probation period The probation period must be determined by the partiesProbationary periods are not mandatory but are frequently used. They are not strictly limited by statute, meaning the duration can be set as agreed upon by the employer and employee, provided it is reasonable given the role’s circumstances. Terms must be clearly documented in the employment agreement. Note: New Zealand also distinguishes “trial periods” (up to 90 days), which have different dismissal rules compared to standard probationary periods.