Payroll and Benefits Guide - New Zealand

New Zealand
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Currency

New Zealand Dollar (NZD)
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Capital

Wellington
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Employer Taxes

4%

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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

New Zealand is known as the “Land of the Long White Cloud”

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.

New-Zealand

Contributions

Employee Payroll Tax

Contribution TypeRate
Accident Compensation Corporation1.39%
KiwiSaver (Pension)Optional Contribution

Employer Payroll Tax

Contribution TypeRate
KiwiSaver (Pension)3%
Accident Compensation Corporation1% 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.
New-Zealand

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%.