Updated on: October 1, 2025
Currency
New Zealand Dollar (NZD)
Employer Taxes
Employer contributions for KiwiSaver are generally around 3% of gross salaries.
Payroll Frequency
Monthly, fortnightly or weekly
Employee Taxes
N/A
Language
English, Maori
Date Format
DD/MM/YYYY
New Zealand by the Numbers
5.1 million
Population
NZD 300 billion
GDP
11 national public holidays
National Holidays
N/A
Hiring Difficulty Score
Weekly Working Hours
National Holidays
New Year’s Day
Day after New Year’s Day
Waitangi Day
Good Friday
Easter Monday
ANZAC Day
King’s Birthday
Matariki
Labour Day
Christmas Day
Boxing Day
Leave
Annual Leaves: All employees are entitled to 4 weeks’ paid annual leave at the end of each 12 months of continuous employment. If an employee has a fixed-term agreement of less than 12 months or works irregularly, they may agree to receive 8% of their gross earnings as leave pay with regular pay instead of the standard 4 weeks of annual leave. ICs are not entitled to annual leaves.
Primary career leave: Allowed up to 26 weeks for primary career of the child for both adopted children below age 6 and biological children, subject to 6-month or 12-month employment test.
Sick leave: Eligible employees are entitled to 10 days of paid sick leave each year so they can care for themselves, their partners or their dependents.
Bereavement leave: 3 days per bereavement
Family Violence leave: Eligible employees are entitled to up to 10 days of paid leave each year if they, or a child who lives with them, experience family violence.
Paid Parental Leave $754.87/week (from 1 July 2025).
Employment Contracts
Yes. Employment contracts must be in writing and mention the specific details required by the law.
Types of Employment
Employees and Independent Contractors
Employment Costs
IC Class Factors
Multi factor test encompassing factors such as IC discretion ( control vs independence), economic reality, employment relationship, integration and intention. The Parliament of New Zealand is currently proposing a “gateway Test” for determining whether a worker is a contractor or an employee. This will be enforced by end of 2025 or 2026.
Labor Leasing
Labor hire license is not required. Unless, the labour hire company is planning to work in the construction sector. However, for migrant recruitment an entity must have Triangular Accreditation for AEWV.
Minimum Wage Requirements
The adult minimum wage rate for employees aged 16 years or older is $23.50 NZD per hour before tax.
Medical Benefits
None
Probationary Periods
There is no legally mandated probation period. It is left to the Employer’s Discretion. Employers can also choose to include a 90 day trial period in the employment contract.
Termination Notice
The notice period is typically outlined in the employment agreement, depending on the role 2 to 4 weeks’ notice is often fair and reasonable, though it can vary by industry and position. Employers may pay in lieu of notice or place the employee on garden leave, if allowed by the employment agreement.
Severance
Whether employees receive redundancy payments is dependent on the applicable employment agreements and is a matter for negotiation between the parties. However, all employees whose employment is ending due to redundancy must be given notice in accordance with their employment agreement.
Pre-hire Checks
Immigration checks may be required to prove the right to work in New Zealand and are permitted with the applicant’s consent.
Criminal record and background checks may be required, depending on the industry and the job role and are permitted with applicant’s consent and subject to relevant discrimination laws. Credit checks can be done when there is significant financial risk associated with job.
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Legal Disclaimer
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