Country Guides

New Zealand

Quick Find

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Capital

Wellington

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Language

English & Māori

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Remote workers

260,000

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Currency

NZ$ New Zealand Dollar

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Working hours

40 hours per week

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Public holidays

11 days per year

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Minimum hourly salary

NZ$23.50

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Tax year

Jan 1 - Dec 31

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Date format

DD/MM/YYYY

Misclassification penalties

Misclassification fines include back-payments for PAYE, minimum wage, holiday and leave entitlements plus penalties starting at NZ$ 30,000. Directors and managers may be personally fined if involved.

Fun fact

New Zealand was the first country to give women the right to vote and to introduce pensions for the elderly.

Employer contributions

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    Employer tax: 3%+
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    KiwiSaver scheme: 3%
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    Accident compensation levy: depends on industry
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    Fringe benefits tax: 11.73% - 63.93% (only if offering fringe benefits)

Employee contributions

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    Employee tax: 11.89% - 50.39%
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    KiwiSaver: minimum 3% if participating
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    Accident compensation levy: 1.46%

Income tax

Gross income: Up to $15,600

Tax rate: 10.50%

Gross income: $15,600 - $53,500

Tax rate: 17.50%

Gross income: $53,501 - $78,100

Tax rate: 30%

Gross income: $78,101 - $180,000

Tax rate: 33%

Gross income: Over $180,000

Tax rate: 39%

Looking for a quick cost estimate?

Use our calculator to understand what are all the employment costs you have to consider in New Zealand .

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Employer of Record in New Zealand

What is an EOR?

An Employer of Record is the legal employer of a worker in New Zealand. As such, the Employer of Record takes care of all New Zealand compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in New Zealand

  • KiwiSaver

    KiwiSaver is a voluntary savings scheme available to every new employee between the ages of 18 and 65. Its purpose is to help set employees up for retirement.

  • Accident Compensation Corporation

    Employers must cover all employees with accident insurance in the workplace for all work and non work-related injuries. Coverage is around 0.72-1% of the employer’s monthly payroll.

Common non-mandatory benefits in New Zealand

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    Flexible working
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    Employee assistance program
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    Career development
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    Wellness programs
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    Hardware
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    Health insurance
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    Additional parental leave
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    Charity work leave
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    Additional holiday
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Written employment agreement

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Payslip

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Flexible working

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Health & Safety

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Protection from discrimination

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Pay and employment equity protection

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Unemployment funds

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Personal information protection

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Work unions

Paid time off

20 days + public holidays

Sick leave

10 days

Maternity leave

In New Zealand, it's known as primary carer leave. 26 weeks of paid primary carer leave and 4-26 weeks of unpaid leave

Paternity leave

In New Zealand, it's known as a partner's leave and is available to the partner of the mother regardless of their gender. 1-2 weeks of unpaid leave determined by length of employment

Bereavement leave

3 days of paid bereavement leave upon a close family member's death

Probation

In New Zealand, the standard length of probation periods is around 3 to 6 months, but there is no legal limitation. They must be recorded in the employee's employment agreement.

Deductions

Employers are only allowed to make deductions on employee's salaries required by law for income tax, ACC, KiwiSaver, child support and student loan repayment.

Payment frequency

Generally, it is fortnightly, but it can also be monthly.

Payday

Depends on the company, but commonly on the 28th of every month.

Before terminating a New Zealand employee (except in cases of gross misconduct and redundancy), employers must have a good reason and are required to follow a fair grievance procedure.

Employees are protected from being terminated for whistleblowing, being pregnant or part of a union and taking or requesting parental leave. Furthermore, employers must act in good faith, have a good reason, follow a fair process and be open-minded when dealing with problems to ensure outcomes are not pre-determined.

Protected employees unfairly dismissed can take personal grievance claim against the employer.

Employers cannot make someone redundant without going through the workplace change process first. Redundancy pay is not mandatory in New Zealand, and employees are only entitled if it’s mentioned in their employment agreement.

FAQs

When hiring in New Zealand, four options are available. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each path involves different compliance and operational effort. An EOR allows compliant New Zealand employment without establishing a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in New Zealand, employment is the right structure under New Zealand law, covering entitlements like paid annual leave, sick leave, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in New Zealand.

HR compliance in New Zealand means your policies and procedures respect all applicable New Zealand employment laws and regulations. When you hire in New Zealand, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave (10 days), annual leave (20 days), minimum wage (NZ$23.50/hour), tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

An Employer of Record is the legal employer of the individual in New Zealand for government, tax, and employment purposes. It provides a locally compliant employment agreement, runs payroll, files employment taxes, and manages statutory benefits such as 26 weeks of paid primary carer leave and 20 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including New Zealand. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

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