New Zealand is known as the “Land of the Long White Cloud”
Payroll and Benefits Guide - New Zealand
Fun Facts
The iconic film trilogy “The Lord of the Rings” was filmed entirely in New Zealand, taking advantage of its diverse and picturesque scenery.
New Zealand is composed of two main islands, the North Island and the South Island.
Rugby is considered the national sport of New Zealand
New Zealand has a reputation for adventure sports, such as bungee jumping, skydiving, and whitewater rafting.
The first person to reach the summit of Mount Everest, Sir Edmund Hillary, was a New Zealander.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Accident Compensation Corporation | 1.39% |
| KiwiSaver (Pension) | Optional Contribution |
Employer Payroll Tax
| Contribution Type | Rate |
| KiwiSaver (Pension) | 3% |
| Accident Compensation Corporation | 1% of gross salary +KiwiSaver Contribution |
Payroll
Payroll Cycle
Payroll frequency is the employer’s choice; however, common frequencies are monthly or bi-weekly (every two weeks).
13th Salary
Payroll frequency is the employer’s choice; however, common frequencies are monthly or bi-weekly (every two weeks).
Work Hours and Week
New Zealand does not have a minimum requirement. Common full-time hours are 7.5 hours to 8.0 hours per day. The number of hours worked by an employee, whether more or less than 40 hours a week, must be included in the employment contract. Monday-Friday
Overtime
Payment for overtime must be stipulated in the employment contract, or it may be prescribed in company policy.
Leave
Paid Time Off
Employees are entitled to a paid annual leave entitlement of four weeks following a year of service. Unused leave will be compensated in the case of an employee’s termination.
Public Holidays
There are 12 public holidays.
Sick Days
Employee sick leave entitlement from five to 10 days per annum, after six months of continuous employment with their employer.
Maternity Leave
Female employees who are having a baby, their spouse or partner, and employees who are going to have the primary responsibility for the care, development, and upbringing of a child under six years permanently.
Paternity Leave
Paternity leave is known as partners leave in New Zealand and entitles partners to leave starting 21 days before the due date of the baby, or the date employee’s partner or spouse becomes the primary carer for a child under six years and ending 21 days after the baby is born.
Parental Leave
There is a range of Parental leave options in New Zealand for:
- Special leave — unpaid leave for pregnancy-related appointments
- Primary carer leave
- Extended leave
- Spouse or partner’s leave
- Negotiated carer leave — if you’re not eligible for work leave
Termination
Termination Process
The termination process varies according to the terms of the employment agreement and collective agreement in place and will depend upon the type of contract and reason for termination.
Notice Period
The termination process varies according to the terms of the employment agreement and collective agreement in place and will depend upon the type of contract and reason for termination.
Severance Pay
Generally, severance pay is not required unless it is a redundancy scenario.
Probation Period
Probation Period
The statutory (trial period) probation period in New Zealand begins on the first day at work and can be for up to 180 days.
VISA
VISA
A foreigner can apply for a work visa when there is:
- A job offer from a New Zealand employer
- A specific work-related purpose or event
- A country that has a particular work scheme
- A person has been studying in New Zealand
VAT
The standard rate of GST in New Zealand is 15.00%.