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In New Zealand, the minimum wage is generally NZD 22.70 per hour. In special cases for training and early employment the minimum wage is NZD 18.16 per hour. 

Effective April 1, 2024, these rates will increase to NZD 23.15 per hour and NZD 18.52 per hour respectively.

The individual income tax ranges from 10.5% to 39%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated at 3.21% of the employee salary.
- Employer KiwiSaver / ESCT - 3%
- Employer ACC Levy - 0.21% up to a maximum monthly salary for the contribution of NZD 11,856.9167

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Employees are entitled to between 1 and 2 weeks of unpaid paternity leave. The leave can be taken from 21 days before birth and 21 days after. Leave varies depending on the length of services:

• 1 week - if they’ve worked for 6 months for at least an average of 10 hours a week
• 2 weeks - if they’ve worked for 12 months for at least an average of 10 hours a week

• They have six months’ current continuous employment with the same employer
• They have worked for the employer for six months for an average of 10 hours per week, and at least one hour in every week or 40 hours every month

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in New Zealand can be complex. There is no at-will termination in New Zealand for employers and termination must be done for just cause. 
Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• By the expiration of the contract
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job

Both full-time and part-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.67 days per month. Employees are eligible for annual leave after 1 year of work.

New Zealand celebrates 12 national and 12 regional holidays based on the location of the employee. 

National public holidays include: 

1. New Year’s Day
2. Day after New Year’s Day
3. Waitangi Day
4. Good Friday
5. Easter Monday 
6. Anzac Day
7. Kings’s Birthday
8. Matariki Day 
9. Labor Day
10. Christmas Day
11. Boxing Day

• The names of the employer and the employee
• A description of the work to be performed
• An indication of the place of work
• The agreed hours or an indication of the hours that the employee will work, this includes agreement on any or all of the following:
  • The number of hours
  • The start and finish times
  • The days of the week the employee will work
• The wage rate or salary payable (must be equal or greater than the relevant minimum wage) and how it will be paid (if the employee won’t be paid in cash, this should be in the employment agreement or must be agreed upon in writing somewhere else)
• An explanation of how to help resolve employment relationship problems, including advice that personal grievances must be raised within 90 days
• A statement that the employee will get (at least) time-and-a-half payment for working on a public holiday
• For relevant employees, and employment protection provision to apply if the employer’s business is sold or transferred, or if the employee’s work is contracted out.

Any other matters agreed on, such as trial periods, probationary arrangements, or availability provisions.

The nature of the employment if the employment is fixed-term.

It is possible to backdate in New Zealand for a short period of time.