New Zealand offers a skilled, English-speaking workforce and light employer on-costs, with a distinctive trial-period option. All-in employer cost runs around 1.04x the gross salary. Here is what to know before your first New Zealand hire.
Employment runs under the Employment Relations Act and the Holidays Act, with mandatory written agreements, good-faith obligations, and KiwiSaver enrolment. A short trial period is available to smaller employers.
The adult minimum wage is about NZD 23.15 per hour in 2024*, reviewed annually.
Weekly, fortnightly, or monthly. There is no statutory 13th salary; bonuses are contractual.
There are 11 public holidays a year, with a paid day in lieu or time-and-a-half if worked.
A written agreement is required by law. Employers with fewer than 20 staff may use a 90-day trial period; others use probation with fair process.
Employer on-costs are light, mainly the KiwiSaver employer contribution and the ACC levy that funds accident cover.
New Zealand funds most social support from general taxation, so employer payroll on-costs are limited to KiwiSaver and ACC.
Employees pay income tax under the PAYE system plus their KiwiSaver and ACC share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
Four weeks of paid annual leave a year under the Holidays Act, plus the public holidays.
Up to 26 weeks of government-paid parental leave, with extended unpaid leave available.
Ten paid sick days a year after six months, able to accumulate to a cap.
Bereavement and family-violence leave are provided by statute.
Notice is set by the agreement, and dismissal must be both substantively justified and procedurally fair, or it can be a personal grievance.
There is no statutory redundancy pay; any redundancy compensation comes from the agreement.
Employers with under 20 staff may use a 90-day trial period; larger employers use probation with full fair-process rules.
A contractor working like an employee can be reclassified by the Employment Court, with back leave and entitlements.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant New Zealand employment agreement, payroll, and KiwiSaver, handled. One invoice, flat $499 per month.