Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Welcome to the world of EOR in New Zealand, where foreign employers can unlock a wealth of knowledge and assistance in navigating the intricacies of hiring and managing employees in this beautiful country. From employment regulations and compliance to payroll obligations, work visas, and employee benefits, our comprehensive resources provide you with the essential information you need to ensure a successful employment journey in New Zealand. With our expertise and guidance, you can confidently expand your business, tap into the local talent pool, and create a strong foundation for your workforce in this dynamic and diverse nation. Explore the possibilities and let us support you every step of the way as you embark on your EOR journey in New Zealand.
| Overview | |
| Continent | Oceania |
| Country | New Zealand |
| Capital | Wellington |
| Time zone | UTC−11:00 — Niue |
| Total Time zones | 5 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 7th July |
| Financial Year | 1 April – 31 March |
| Date format | dd/mm/yyyy |
| Currency | New Zealand dollar ($) |
| VAT | the standard rate is 15% |
Employer Payroll Contributions in New Zealand
| Employers | % of Gross Salary |
| Minimum Employer Contribution (Kiwisaver) | 3% |
| Total Employment Cost | 3% |
Employee Payroll Contributions in New Zealand
| Employees | % of Gross Salary |
| Minimum 3% Kiwisaver | 3 to 10% |
| Total Employee Cost | 3 to 10% |
Minimum Wages in New Zealand
| Minimum Wage | |
| Minimum Wage | The minimum wage in New Zealand is 20 NZD per hour. |
Payroll Cycle in New Zealand
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
Personal Income Tax in New Zealand
| Income Tax | |
| 0 - 14,000 NZD | 10.5% |
| 14,001 NZD - 48,000 NZD | 17.5% |
| 48,001 NZD - 70,000 NZD | 30% |
| 70,001 NZD - 180,000 NZD | 33% |
| Over 180,000 NZD | 39% |
Employment Contracts in New Zealand
In New Zealand, it is a legal requirement for an employment agreement to be in writing and include specific minimum terms. These terms encompass important details such as the names of the parties involved, a description of the work to be performed, the agreed hours of work, the wage rate or salary, payment methods, dispute resolution processes, the timeframe for raising personal grievances (within 90 days), employment protection provisions, entitlements for working on public holidays (including time-and-a-half payment and potential days in lieu), and other agreed-upon matters. For fixed-term employment, the nature of the employment should also be mentioned. Additionally, the employment agreement must refer employees to the Ministry of Business, Innovation, and Employment for further information on their entitlements under the Holidays Act 2003.
Probationary Periods
Under specific conditions, a trial period of up to 90 days is allowed for employers with fewer than 20 employees. During this trial period, if an employee's employment is terminated, they cannot raise a personal grievance in relation to their dismissal.
Apart from trial periods, employers have the option to include probationary periods in employment agreements. However, even during a probationary period, employers must adhere to a fair process when dismissing an employee, and employees still retain the right to raise a personal grievance regarding their dismissal.
Policies
While not mandatory, certain policies are strongly recommended, particularly those concerning anti-discrimination, harassment, bullying, and health and safety. Having these policies in place is crucial, as their absence may be considered relevant in the event of a dispute.
Third-Party Approval
There is no requirement to submit employment contracts or policies to a third party for approval or lodgment. Employers are not obligated to seek external approval for their employment arrangements.