Payroll Cycle
Minumum Wage
  • ~Adult: $21.20
  • ~Starting: $21.20
  • ~Training: $21.20

These minimum wage rates are covered by the Minimum Wage Act 1983. However, there are employee categories that are exempted from this act:

  • ~Employees 15 below.
  • ~Apprentices.
  • ~Inmates in charitable institutions.
  • ~Prisoners.
  • ~Employees travelling between clients.
Overtime Pay
Visa Immigration
Types of Visa Duration Note
APEC Business Travel Card Up to 3 months Requires Passport and APEC Business Travel Card to travel A work visa is needed if you’re planning to stay longer than 3 months
Business Visitor Visa Up to 3 months You must hold NZeTA before traveling to New Zealand
Global Impact Work Visa 36 months Apply for permanent residence after 30 months on the Edmund Hillary Fellowship
Entrepreneur Work Visa Up to 3 years You can set up your business in New Zealand Work up to three years on your business You can include your partner and dependents or children under 19 years old First 12 months, start-up stage of visa, then another 24 months to show business set-up
Entrepreneur Resident Visa Indefinite Partners and any dependents 24 and under may be included You must have applied less than 2 years of being self-employed, have at least NZ$ 500,000.00 in invested capital, and created 3 jobs for the application to succeed

Talent Wiki - New Zealand

Your quick guide on talent and labor compliance norms in New Zealand
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Capital
Wellington
Currency
New Zealand Dollar (NZD)
Languages
English (Official), Māori (Official), New Zealand Sign Language (Official)
Payroll Frequency
Weekly, Bi-Monthly, Monthly
GDP per Capita
$38,800
Employer Tax
3%

Supplementary Guide for Employment and Expansion in New Zealand

Talent Overview

New Zealand is the 52nd largest economy in the world. The country is known to have a very active start-up community which has increased by 30% from 2020 to 2021 alone. Its rapid increase in developing its information sector has investors flocking to the country. New Zealand also has a sizable service industry making up 63% of its economy. 

Major Economic Hubs:

Wellington, Auckland, Christchurch

Skills in Demand:

Information and Communications Technology Professionals, Trade Professionals, Engineering Professionals, Health and Social Services Professionals

Local Universities

Some top local universities in New Zealand and their rankings are as follows:

University of Auckland

RANKING

New Zealand : 1

World : 165

University of Otago

RANKING

New Zealand : 2

World : 368

University of Canterbury

RANKING

New Zealand : 3

World : 429

Victoria University of Wellington

RANKING

New Zealand : 4

World : 478

Massey University

RANKING

New Zealand : 5

World : 520

Salary Data

No. Job Title Average Salary (NZD) Average Salary (USD)
1 Network Engineer 80,700.00 51,147.66
2 Database Administrator 91,500.00 57,922.70
3 Developer / Programmer 95,000.00 60,211.00
4 Project Manager 106,000.00 67,182.80
5 Information Technology Manager 165,000.00 104,570.00
6 General Manager 169,000.00 107,184.02

Talent Sourcing Tips

Employing in New Zealand

Employers looking into expanding in New Zealand requires a strong grasp of the country’s employment laws, benefits, payroll, and taxes. Below are the basics to assist you when onboarding talents from New Zealand.

Employee Contract

In New Zealand, it is required for you to provide your employee with a copy of their individual employment agreement. However, employment contracts can be written or oral whichever parties recognize as their agreement. English, being the dominant language in the country, is often used for these contracts.

Probation Period

The probationary period for employees starts at a minimum of 1 month to a maximum of 3 months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
2 Jan Day after New Year's Day National holiday
3 Jan Day off for New Year's Day National holiday
4 Jan Day off for Day after New Year's Day National holiday
6 Feb Waitangi Day National holiday
7 Feb Day off for Waitangi Day National holiday
15 Apr Good Friday National holiday
18 Apr Easter Monday National holiday
25 Apr ANZAC Day National holiday
6 Jun Queen's Birthday National holiday
24 Jun Matariki National holiday
24 Oct Labour Day National holiday
25 Dec Christmas Day National holiday
26 Dec Boxing Day National holiday
27 Dec Day off for Christmas Day National holiday

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave 20 days Yes
Sick Leave 10 days Yes
Maternity Leave 26 weeks Yes

Payroll

Payroll Cycle

Employees are usually paid weekly, bi-monthly or monthly

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Minimum Wage

The minimum wage in New Zealand depends on what type of category employees fit in. Adults (16+) and regular employees have a higher minimum wage rate than those who are starting or in training as you can see in the link below.

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Overtime pay

There is no legal restriction regarding overtime pay. However, most employees are paid 1.5 times or 2 times their hourly wage depending on the agreement between the employer and employees. This payment is also called a penal rate, which is payment given aside from the standard rate.

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Health Examination Clause

Bonus

13th month salary

A 13th-month bonus is not mandatory in New Zealand.

Employee Benefits

The New Zealand government has set a robust social welfare system, which provides benefits among their citizens and residents. Below are some of the benefits they offer to their employees: 

  • ~Unemployment benefit (Jobseeker support)
  • ~Domestic Purposes Benefit (Sole Parent Support)
  • ~Health benefits (Sickness Benefit and Invalid's Benefit)
  • ~Pension Scheme (KiwiSaver)
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Taxes

Employer Payroll Tax

Tax Rate Contribution
3% Social Security

Employee Payroll Tax

Tax Rate Contribution
3% (4%, 6%, 8%, 10%) Social Security

Employee Income Tax

Income tax is levied at a progressive rate on all annual income as follows:

Income Group Income Rate
≤ 1,166.67 10.5%
1,166.67 – 4,000.00 17.5%
4,001.00 – 5,833.33 30%
5,833.33 - 15,000.00 33%
>15,000.00 39%

VAT

The standard VAT rate in New Zealand is 15% and 9% for the reduced VAT rate.

Offboarding & Termination

Termination Process

The termination process in New Zealand is simple. It can be done through resignation, retirement, dismissal, or redundancy.

Notice Period

The notice period for employees during the probationary period is from one to two weeks, while for permanent employees, it ranges from two to four weeks.

Severance Pay

Employees will be paid for any unused annual leave or days in lieu as severance pay.

Severance Pay Rate

Employment Period Severance Pay Rate
< 12 months 8% of normal pay
≥ 12 months 100% of normal pay

Visa and Immigration

Foreigners have work visa options based on the purpose of their stay in the country. Click below to get more details:

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