New Zealand

What to know about hiring and paying in New Zealand

With Vensure Global you can expand your global workforce to New Zealand with ease. We help you find, hire, and pay employees accurately and compliantly, ensuring full alignment with local labor laws, payroll regulations, and employer requirements.

Quick Facts

Currency

New Zealand Dollar (NZD)

Capital

Wellington

Primary Language(s)

English, Maori

Payroll Cycle

Monthly and Bi-Weekly

Population

5.21 Million

Value Added Tax (VAT)

21%

Expanding into New Zealand

Thinking about hiring in New Zealand? This guide covers the key employment laws, payroll rules, required benefits, and compliance considerations for employers. Explore everything you need to hire and manage talent in New Zealand with confidence.

Payroll & Working Hours

Minimum Wage Requirements

Minimum wage is currently set at NZD 22.70 ($13.57 USD) per hour.

Working Hours

Primary Time Zone: New Zealand Standard Time (NZST) – UTC +12.

Working Hours: Monday to Friday, 8:00 AM to 5:00 PM, totaling 40 hours per week.

  • Staff may have different start and finish times based on their employment contract. Any variances must be documented and agreed upon by both the employee and the employer.

Overtime Pay

Overtime payment must be specified in the employment contract or outlined in the company’s policy.

Maximum Hours

40hrs/week before it´s considered overtime.

Break Requirements

Employees are entitled to paid breaks and unpaid meal breaks. The minimum length of breaks required by law is:

  • Rest breaks: At least 10 minutes.
  • Meal breaks: At least 30 minutes

Hiring and Onboarding Information​

Background Checks

  • Employers can request criminal record checks from the New Zealand Police or the Ministry of Justice, but they must obtain the applicant’s written consent. Applicants may not need to disclose certain convictions under the Criminal Records (Clean Slate) Act 2004.
  • Employers can ask for previous name details if needed for a proper purpose, such as a criminal record check
  • Credit Checks can be requested if the job involves significant financial risk, such as roles in accounting or banking.
  • Reference Checks gathered must be relevant to the job and handled in compliance with the Privacy Act 2020.

Verification and New Hire Reporting

Employers must verify that the employee has the legal right to work in New Zealand. This is typically done by checking passports, visas, or other relevant documents

Onboarding Process & Documentation

Collecting Required Documentation

  • The Tax Code Declaration (IR330) form must be completed by the employee to determine their tax code.
  • For payroll purposes, employees must provide their bank account information.
  • Proof of Identity and Right to Work this includes a passport, visa, or other documentation proving the employee’s legal right to work in New Zealand.
  • Details of who to contact in case of an emergency

Benefits Packages​

Healthcare

Healthcare is governed by several laws, including the Health Act 1956. The Ministry of Health oversees the regulation of health services and ensures that providers meet safety and quality standards. Public health services are funded by the government, providing free or subsidized care to residents

Retirement

There isn’t an official retirement age, but many people retire around 65 when they become eligible for NZ Superannuation. This is a universal pension for citizens and residents aged 65 and older. Additionally, the KiwiSaver scheme allows individuals to save for retirement, with contributions from both employees and employers.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Information​

Employment Contract Details

All employees must have a written employment contract that outlines the terms and conditions of the employment relationship.

Key Components:

  • Identify Contract Type: Determine if the employment is permanent, fixed-term, part-time, or casual.
  • Include Mandatory Clauses: Ensure the contract contains essential terms, such as job description, hours of work, wage or salary, leave entitlements, and dispute resolution.

Probation Period

Probationary periods typically last up to 180 days. The actual timeframe will be agreed in the employment contract and is only applicable to employees who have not worked for the employer before. Three to six months is a common period to use as probation.

Visas

Visa-Free Stay: Up to 90 days for many nationalities

Visa Types:

  • Tourist Visa: For leisure/business visits
  • Business Visa: For meetings, trade
  • Residency Visa: For long-term stay or employment
  • Dependent Visa: For family members
  • Transit Visa: For airport transfers

Application Process:

  • Submit documents to consulate
  • Pay fees, attend interview if needed
  • Processing time: 10–15 business days

Extensions & Appeals: Available through immigration offices.

Independent Contractors

Independent contractors are not covered by the same employment laws as employees.

  • Independent contractors work under specific contracts that outline the terms of their engagement.
  • Contractors provide their own tools and equipment, manage their own taxes, and are responsible for their own health and safety.
  • To determine if a worker is an independent contractor or an employee, New Zealand uses tests such as the intention test, control vs. independence test, integration test, and economic reality test.

Time Off Policies​

Paid Time Off

Employees are entitled to four weeks of paid annual leave after completing one year of service. If an employee’s employment is terminated, any unused leave will be compensated.

Unused leave is carried over to the following year. Fixed-term workers with contracts of less than 12 months receive 8% holiday pay instead of four weeks of leave.

Public Holidays

Holidays falling on weekends are moved to the next business day as a day off in lieu.

  • New Year’s Day
  • Day after New Year’s Day
  • Waitangi Day
  • Good Friday
  • Easter Sunday
  • Easter Monday
  • ANZAC Day
  • King’s Birthday
  • Matariki
  • Labor Day
  • Christmas Day
  • Boxing Day

Bereavement

Employees are entitled to 3 days per bereavement leave in the event of the death of an immediate family member. Bereavement leave can be taken at any time and does not have to be taken consecutively

Leave Policies​

Maternity Leave

Known as Primary Caregiver Leave and is available to:

  • Female employees who are having a baby.
  • Spouses or partners of pregnant employees.
  • Employees who will have the primary responsibility for the care, development, and upbringing of a child under six years permanently (e.g., through adoption, but not including foster care or other temporary care arrangements).

If the employee has a spouse or partner, they can choose who will be the primary carer.

Entitlements:

  • Duration: Pregnant employees are entitled to 26 weeks of primary caregiver leave.
  • Payment: Employees are paid their regular weekly salary up to a maximum of NZD 712.17 ($425.67 USD).

Start of Leave:

  • For Pregnant Employees: Primary carer leave starts on the due date or the child’s birth.
  • For Other Primary Caregiver: Leave starts when the employee becomes the primary carer of the child.

Employees can start their primary carer leave up to six weeks before the baby’s due date, or earlier with the employer’s consent, or when they will become the child’s primary caregiver.

Paternity Leave

Known as Partners Leave.

  • Leave can begin 21 days before the baby’s due date, or the date the employee’s partner or spouse becomes the primary carer for a child under six years. › Leave ends 21 days after the baby is born.

Exceptions:

  • If the baby is discharged from the hospital more than 21 days after birth, the leave timeframe ends on the day the child is discharged.
  • If the employee’s partner or spouse becomes the primary carer for the child, the leave timeframe ends on that date.

Parental Leave

A variety of parental leave options are offered to accommodate different circumstances:

  • Special Leave: Unpaid leave for pregnancy-related appointments, such as medical check-ups, antenatal classes, and scans. Pregnant employees can take up to 10 days of special leave
  • Primary Carer Leave: Available to employees who are pregnant, their spouse or partner, or those who will have primary responsibility for a child under six years (e.g., through adoption). This leave entitles them to 26 weeks of paid leave
  • Extended Leave: Unpaid leave that can be taken after primary carer leave ends. Employees who have worked for their employer for 12 months or more can take up to 52 weeks of extended leave, minus the number of weeks of primary carer leave taken
  • Spouse or Partner’s Leave: Unpaid leave for the spouse or partner of someone who is pregnant or taking primary care of a child under six years. This leave can start 21 days before the due date or the date the partner becomes the primary caregiver, and ends 21 days after the baby is born
  • Negotiated Carer Leave: For employees who do not qualify for primary care leave but meet the criteria for parental leave payments. This allows them to take unpaid time off work to care for their child

Sick Leave

Employees are entitled up to 10 days per year, after six months of continuous employment with their employer.

Employees can carry over up to 10 unused sick days each year, adding to their annual entitlement, with a maximum of 20 days of current entitlement in any given year. This applies to full-time, part-time, and fixed-term employees with contracts longer than six months.

Casual employees are also entitled to sick leave if they have six months of continuous employment with the same employer, or if they have worked for the employer for six months, averaging 10 hours per week, and at least one hour every week or 40 hours every month. Sick leave is not to be pro-rated.

Termination Information

Termination Requirements

An employee who wishes to terminate their employment must provide sufficient notice, as specified in their employment agreement, typically ranging from two to four weeks.

If the employment agreement does not specify a notice period, then ‘reasonable notice’ must be given. The length of ‘reasonable notice’ depends on various factors, including:

  • The reason for the redundancy
  • The employee’s length of service
  • The employee’s seniority and/or remuneration package
  • Custom, practice, and industry norms
  • The employee’s ability to find alternative employment
  • The amount of compensation being paid (if any)

Notice Period

An employee who wishes to terminate their employment must provide sufficient notice, as specified in their employment agreement, typically ranging from two to four weeks.

Severance Pay

Severance pay is not required.

Unemployment Insurance

Unemployment compensation is managed through the Jobseeker Support program, which provides financial assistance to those who are unemployed and actively seeking work. Here are the key points:

Eligibility

  • You must be 18 years or older (or 20 if you have no dependent children).
  • Employee must be a New Zealand citizen or permanent resident.
  • Employees must be actively seeking and available for work.

Financial Criteria

  • Employees’ income and assets must be below certain thresholds. This includes any income from work, savings, and other assets

Payment

  • The amount the employee receives depends on their circumstances, including their age, whether they have a partner, and if they have dependent children

Workplace Safety​

Anti-Discrimination Practices

Discrimination is unlawful when it is based on prohibited grounds such as age, race, sex, sexual orientation, disability, religious belief, and more. Employers must ensure equal employment opportunities and fair treatment for all employees. › protects employees from bullying, harassment, and discrimination in the workplace. Employers must investigate and address any complaints of harassment, whether it is sexual, racial, or any other form. Creating a safe and inclusive work environment is a legal obligation for employers.

  • The Equal Pay Act 1972 ensures that men and women receive equal pay for the same work. The Equal Pay Amendment Bill further strengthens this by addressing pay equity, ensuring that work predominantly performed by women is not undervalued compared to work of equal value performed by men.

Workplace Safety Standards

Workplace safety regulations are detailed under the Health and Safety at Work Act 2015 and various supporting regulations. WorkSafe New Zealand oversees the implementation of these regulations, ensuring businesses comply with safety standards and practices to prevent workplace accidents and injuries

Workers’ Compensation

Worker’s Accident Compensation is governed by the Accident Compensation Act 2001. This Act provides comprehensive coverage for personal injuries, including work-related injuries, through the Accident Compensation Corporation (ACC). The ACC offers financial support for medical treatment, rehabilitation, and income replacement for injured workers.

Labor Laws

Labor Law Sanctions

Employment Relations Act 2000: This act governs the relationship between employers and employees. It includes penalties for breaches such as unfair dismissal, failure to provide employment agreements, and non-compliance with minimum wage laws.

Health and Safety at Work Act 2015: This act aims to ensure workplace safety. It includes sanctions for employers who fail to meet health and safety obligations, such as fines and imprisonment for serious breaches.

Holidays Act 2003: This act regulates entitlements to holidays and leave. Employers who fail to comply with holiday pay requirements can face penalties.

Minimum Wage Act 1983: This act sets the minimum wage rates. Employers who pay less than the minimum wage can be fined.

Wage Theft Bill (Crimes (Theft by Employer) Amendment Act 2025): This recent legislation clarifies that failing to pay wages and statutory entitlements is considered theft. It includes criminal sanctions such as imprisonment and fines for employers who intentionally withhold wages.

Social Security Act 2018: This act includes sanctions for benefit recipients who fail to meet work obligations, such as mandatory community work or money management payment cards.

Disclaimer

The information included in this section are provided for reference as samples of official documents derived from government agencies, law firms, or other entities. This content is not and may not be construed to be legal advice or to be a legal opinion on any specific facts or circumstances, or to be a comprehensive or all-inclusive compilation of facts potentially relevant to country, federal, state, or local laws. Any data referenced here is for informational purposes only. It is strongly recommended that any data you view, be carefully reviewed as well as any applicable changes in federal, state, and local laws, regulations, guidance, and guidelines set forth by the governing agencies, which may change at any time and in such instances will render some content in the above information void or inaccurate. Users should not rely on this content for editing and customization exclusively but should consult an attorney for legal guidance for proper and compliant drafting. You are solely responsible for compliance with all applicable laws and regulations.

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