New Zealand has a population of 4.8 million people, with thriving industries including agriculture, fishing, and mining. There are many options for business entities that can be setup in New Zealand, and the corporate tax rate is 28%.

Payroll and Tax Considerations:

  • Employment contracts must be in writing. Failure to provide a contract can result in a fine of NZD 1,000 per employee
  • Minimum wage applies to all employees over the age of 16
  • The current minimum wage is NZD 20 per hour and NZD 16 per hour for training and starting wage
  • There is no standard for overtime pay
  • There are no provisions for mandatory severance pay. Employers can provide redundancy pay if it is agreen upon in the employment contract
  • Income tax rates are progressive and range from 10.5%-39%
  • There is no social security tax, but there is a voluntary system for contributing to retirement called the Kiwisaver

HR and Statutory Requirements

  • Employees are entitled to a minimum of 4 weeks of paid annual leave after working 12 months with the same employer
  • All employees are entitled to 5 days of sick leave after they have worked for 6 months
  • Proof of sickness is required if the employee is sick or injured for more than 3 consecutive days
  • There is no set maternity leave in New Zealand, but there are different types of leave that can be shared between partners under parental leave
  • There is no legal retirement age in New Zealand, but pension benefits start at age 65
  • There is a universal government-funded pension as well as a voluntary work-based savings program
  • There are many types of visas available including; working holiday, transit, business, medical, partner of worker, temporary retirement, work to residence, essential skills, investor business migration, and entrepreneur

Holidays in New Zealand

  • January 1 – New Year’s Day
  • January 2 – Day after New Year’s Day
  • January 3 – Day off for New Year’s Day
  • January 4 – Day off for Day after New Year’s Day
  • February 6 – Waitangi Day
  • February 7 – Day off for Waitangi Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • April 25 – ANZAC Day
  • June 6 – Queen’s Birthday
  • June 24 – Matariki
  • October 24 – Labour Day
  • December 25 – Christmas Day
  • December 26 – Boxing Day
  • December 27 – Day off for Christmas Day

If you are just getting started in New Zealand, or need to improve payroll and compliance, we can help. Our cloud-based payroll platform gives you real-time access to your payroll across 150+ countries with customized, aggregated reporting to ensure compliance. We provide a dedicated US-based service team and direct access to in-country experts to help when questions come up. Talk to us today about simplifying your payroll in New Zealand.