🇳🇿 Cost of employing in New Zealand
Employer on-costs in New Zealand are relatively light: KiwiSaver employer contributions and the ACC Work levy are the main statutory items. There is no payroll tax.
Status key: Verified read on the official source page · Pending re-check from an official source, figure not yet re-read on the page · Coming soon not shown until verified. Every figure links to its source and shows the date we last checked it.
Employer on-costs and statutory contributions
| Item | Rate | Base / cap | Effective | Source · checked | Status |
|---|---|---|---|---|---|
| KiwiSaver compulsory employer contribution (CEC) Paid by: employer Employer may match 3% if employee has temporary rate reduction. Legislated rise to 4% from 2028-04-01 (source). | 3.5% of gross salary/wages | Gross pay incl. bonuses, commission, overtime; employees aged 16-64 in KiwiSaver/complying fund | 2026-04-01 | ird.govt.nz ↗ 22 Oct 2026 | Verified |
| Employer superannuation contribution tax (ESCT) Paid by: employer (deducted from contribution) Band thresholds/rates NOT yet captured - gap. | Rate depends on employee earnings (bands) | Applied to employer KiwiSaver contributions | current | ird.govt.nz ↗ 21 Oct 2026 | Pending re-check |
| ACC Work levy Paid by: employer Per-industry rates: ACC Levy Guidebook 2026-27 source . Average for 2027/28 set at $0.72 per $100. | Average $0.69 per $100 liable earnings excl GST (2026/27); actual rate by ACC classification unit | Liable earnings: min $50,501, max $156,641 (2026/27) | 2026-04-01 | acc.co.nz ↗ 22 Oct 2026 | Verified |
| ACC Earners' levy Paid by: employee (via PAYE) Employee cost - include for net-pay context only. 2027/28: $1.83 incl GST (IRD). | $1.52 per $100 excl GST ($1.75 incl GST) 2026/27 | Liable earnings up to $156,641 (max levy $2,741.22 incl GST) | 2026-04-01 | ird.govt.nz ↗ 22 Oct 2026 | Verified |
Leave and termination rules
| Rule | Detail | Source | Checked | Status |
|---|---|---|---|---|
| Annual holidays | Minimum 4 weeks paid after 12 months continuous employment | employment.govt.nz ↗ | 22 Oct 2026 | Verified |
| Sick leave | 10 days paid per year after 6 months; carry over up to 20 days | employment.govt.nz ↗ | 22 Oct 2026 | Verified |
| Family violence leave | 10 days paid per year (eligibility as for sick leave) | employment.govt.nz ↗ | 22 Oct 2026 | Verified |
| Law change flagged | Employment Leave Act changes take effect from August 2028 (details not yet captured) | employment.govt.nz ↗ | 22 Oct 2026 | Verified |
| Public holidays | 12 per year, paid if otherwise working day | employment.govt.nz ↗ | 21 Oct 2026 | Pending re-check |
Coming soon – not yet verified against an official source, so no figures are shown.
- Notice / redundancy pay
Estimate a total cost: use the calculator to add these on-costs and an EOR fee to a salary in New Zealand.
General information only – not legal or tax advice. Rules change and individual circumstances differ; confirm with the official source or a qualified adviser. See our disclaimer.