* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

New Zealand Dollar ($)


NZST (GMT +12)

Employment Cost


Annual Leave

4 weeks

In-demand Specialties*
Nursing, Teaching, It

The Ultimate Guide to Hiring Employees in New Zealand

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-New Zealand-guide

Key Considerations Before Hiring In New Zealand

Employing in New Zealand requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in New Zealand with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in New Zealand quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

New Zealand has a growing acceptance of remote work, especially considering the country's geography.

The Kiwi culture places a strong emphasis on work-life balance. Promoting a healthy work-life balance and flexibility in working hours could be attractive to potential workers.

New Zealand has strict employment laws that protect both employers and employees, compliance with which is essential.

KiwiSaver is a voluntary savings scheme in New Zealand designed to help people save for their retirement. While it's not compulsory for everyone, most employees are automatically enrolled, and contributions are deducted from their wages.


Fundamental Aspects of Employment in New Zealand

New Zealand places a strong emphasis on fair employment practices and has established a robust legal framework to govern the employer-employee relationship. When hiring in this territory, employers are expected to adhere to Employee Relations Act 2000 to ensure a smooth and lawful recruitment process. Key aspects of employment in New Zealand include:

  • A written employment agreement
  • Clearly defined renumeration and benefits
  • Working hours and designated breaks
  • KiwiSaver (employers need to inform employees about the KiwiSaver retirement savings scheme and their right to choose whether to participate)

Probationary Period in New Zealand

In New Zealand, both probationary periods and statutory trial periods are distinct employment practices. These are described in detail below:

  • Statutory trial periods, applicable to employers with fewer than 20 employees, have a mandatory maximum duration of 90 days. During this period, termination can occur without specifying a reason.
  • Though optional for bigger employers, probationary periods of between 3 to 6 months are common practice in New Zealand.

Working hours in New Zealand

There is no stipulated minimum work hour requirement. Typically, full-time hours range from 7.5 to 8 hours per day. It is essential for the employment contract to specify the weekly hours, whether exceeding or falling below the standard 40 hours.

Overtime in New Zealand

Employers are not obliged by legal mandates to offer overtime pay, but it is expeected for salaried employees to receive compensation for overtime work at elevated rates, a stipulation that is typically outlined in their employment contracts. Alternatively, companies have the option to incorporate overtime pay regulations directly into their corporate policies.

Navigating Key Aspects of Payroll in New Zealand

New Zealand has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 April - 31 March

Fiscal Year in New Zealand

1 April - 31 March is the 12-month accounting period that businesses in New Zealand use for financial and tax reporting purposes.
bi-monthly or monthly

Payroll Cycle in New Zealand

The payroll cycle in New Zealand is usually bi-monthly or monthly, with employees being paid as stipulated in the employment agreement.
22.70 NZD p/h

Minimum Wage in New Zealand

The minimum wage for employees in New Zealand is typically 22.70 NZD per hour, amounting to ~3,718.83 NZD per month for a typical 30-40 hour work week.

Minimum wages and salaries in New Zealand

New Zealand's minimum wage is 22.70 NZD an hour.

Bonus Payments in New Zealand

While legal regulations do not mandate a 13th month salary, it is a customary practice to provide employees with performance-based bonuses.

Comprehensive Overview of Employment Taxes in New Zealand

Understanding the tax obligations for both employers and employees is crucial when operating in New Zealand's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in New Zealand.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 4.00% on top of the employee salary in New Zealand.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In New Zealand, the typical estimation for employee payroll contributions cost is around 1.39%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

New Zealand has a progressive pay-as-you-earn (PAYE) tax system for individual income. The tax rates are generally based on different income brackets, and the rates may vary for different types of income. The individual income tax ranges from 10.5% to 39%.

Tax Rate Income Bracket

Pension in New Zealand

In New Zealand, there is no mandatory pension system, but employees can voluntarily join KiwiSaver, where employers must make compulsory contributions. Employees can choose a contribution rate of 3%, 4%, 6%, 8%, or 10% of their salary and have the option to opt out within the first eight weeks of enrollment. Additionally, New Zealand offers NZ Super, a non-contributory public pension for residents aged 65 and older.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in New Zealand tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in New Zealand

When it comes to terminating employment in New Zealand, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In New Zealand, the termination process depends on factors like the contract type, grounds for termination, and agreements in place, including employment and collective agreements.

  • Gross misconduct
  • Performance deficiencies
  • Incompatibility
  • Medical Issues

Notice Period

In New Zealand, employers usually follow notice periods of 2 to 4 weeks as stated in employment contracts. When no notice period is specified, a reasonable one is determined based on factors like service length and industry norms.

Severance Pay

Severance payout is only obligatory if an agreement between the employer and employee has been reached. Consequently, an employee's final pay encompasses compensation solely for hours worked and any accrued and unused annual leave days, unless otherwise stipulated through a mutual severance arrangement.

Annual Leave Entitlements and Company Policies in New Zealand

The annual leave entitlement in New Zealand is 4 weeks for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in New Zealand

Public holidays in New Zealand are widely recognized, with potential variations in dates each year. While these holidays are observed nationwide, their occurrence might differ annually, and in the event of a holiday falling on a Sunday, the succeeding Monday is typically designated as the day off. These public holidays include:

Holiday Date

Paid Time Off in New Zealand

Maternity Leave in New Zealand

Paternity Leave in New Zealand

Sick Leave in New Zealand

Special Leave

Bereavement Leave

Parental Leave In New Zealand

New Zealand's Benefits Built Into Playroll

Competitive benefits package in New Zealand

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in New Zealand's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In New Zealand

Make your benefits package in New Zealand a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in New Zealand

Playroll allows you to provide localized benefits for employees in New Zealand within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in New Zealand create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for New Zealand

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in New Zealand.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!