Overview

Capital
Wellington
Currency
New Zealand Dollar
Date Format
dd/mm/yyyy

calendar icon Public holidays calendar

Taxes

Employer
3% - KiwiSaver
10.5% - 33% - Employer superannuation contribution tax (ESCT)
Employee

Minimum Wage

General

New Zealand’s minimum wage is NZ$17.70. All employees are to be paid the minimum wage regardless of the number of hours worked.New Zealand’s goal is to increase the minimum wage each year, reaching a minimum wage of NZ$20.00 per hour by 2021.

Working Hours

General

Full time employment is considered 40 hours a week.

Overtime

The amount employees are paid for their extra hours is usually determined by employers and specified in the working contract that employees sign. Legally, employers are not obliged to pay employees more than their regular hourly pay, but companies may agree to pay at a time-and-a-half or at a double-time rate for any work done overtime.

VAT

General

GST is 15% standard rate.

Mandatory Benefits

Pension Fund

The pension plan called Superannuation is paid to citizens and permanent residents at the age of 65 or older. In order to qualify, the person must have lived in the country for a minimum of ten years after the age of 20, five of which were after the age of 50. Superannuation is completely subsidized by the government.

• Employer Contribution – 0%

• Employee Contribution – 0%

Employees may decide to enroll into the KiwiSaver savings plan. If the employee does, the employer and government must match their contributions. Contributions can be decided on and are deducted at a rate of: 3%, 4%, 6%, 8%, or 10%

Social Security

There is no specified social security tax amount. It is funded through general taxation and benefits include assitnace to elderly, sick, widowed and unemployed.

Payroll

Payroll Cycle

Salaries are distributed on a monthly basis for work between the first and last day of the month. Payday varies depending on the company and is decided upon hiring, but is most commonly on the 28th of the month.

Termination

Termination Process

Employees have the right to request a written reason for dismissal within 60 days of being informed of dissmissal. Employers must provide statement within 14 days of the request. Required notice period is agreed upon in employment contract.

Advance Notice

The length of advance notice is mentioned in the employment agreement. Differs for each company. The length of advance notice is mentioned in the employment agreement. Differs for each company.

Severance Pay

Severance payments include the hours worked until the final day and any unused annual leave or days in lieu payments. Additional payments are either specified in the employment agreement or negotiated as a part of leaving package.If employees do not receive all components of their payments, they may file a claim for unpaid salary or other breaches of the employment agreement.