Discover global hiring strategies from leading recruitment platforms

Learn more

Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.

Explore Multiplier EOR

Book a demo

loading-animtion.gif

Expand your global workforce in New Zealand

Your guide to the employment landscape, working customs and local labor laws in New Zealand.

Capital

Wellington

Currency

New Zealand Dollar (NZD)

Languages

English (Official), Māori (Official), New Zealand Sign Language

GDP per Capita

$47,278

Employer Tax

4%

Payroll Frequency

Weekly, Bi-Monthly, Monthly

Talent overview

New Zealand is the 52nd largest economy in the world. The country is known to have a very active start-up community which has increased by 30% from 2020 to 2021 alone. Its rapid increase in developing its information sector has investors flocking to the country. New Zealand also has a sizable service industry making up 63% of its economy. 

Major economic hubs:

Wellington, Auckland, Christchurch

Skills in demand:

Information and Communications Technology Professionals Trade Professionals Engineering Professionals Health and Social Services Professionals

Top local universities in New Zealand

New Zealand Uni1

University of Auckland

Ranking

Local: 1

World: 137

New Zealand Uni2

University of Otago

Ranking

Local: 2

World: 325

New Zealand Uni3

University of Canterbury

Ranking

Local: 3

World: 416

New Zealand Uni4

Victoria University of Wellington

Ranking

Local: 4

World: 432

New Zealand Uni5

Massey University

Ranking

Local: 5

World: 488

Top Local Job Portals:

Seek, Indeed, Student Job Search

Number of LinkedIn Users (2022):

2,480,000

Top Recruitment Agencies:

Hays Specialist Recruitment, Drake New Zealand Limited, Randstad Limited

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

Below are average monthly salaries for jobs in New Zealand:

Job Title Average Monthly Salary (NZD) Average Monthly Salary (USD)
Network Engineer 6,730 4,283
Database Administrator 7,620 4,849
Developer / Programmer 7,920 5,040
Project Manager 8,820 5,613
Information Technology Manager 13,700  8,719
General Manager 14,100  8,974

Employ in New Zealand

Employing in New Zealand

Employers looking into expanding in New Zealand requires a strong grasp of the country’s employment laws, benefits, payroll, and taxes. Below are the basics to assist you when onboarding talents from New Zealand.

Employee Contract

In New Zealand, it is required for you to provide your employee with a copy of their individual employment agreement. However, employment contracts can be written or oral whichever parties recognize as their agreement. English, being the dominant language in the country, is often used for these contracts.

Probation Period

The probationary period for employees starts at a minimum of 1 month to a maximum of 3 months.

Public and Provincial Holidays

Date Holiday Type
1 Jan New Year’s Day National Holiday
2 Jan New Year Holiday National Holiday
6 Feb Waitangi day National Holiday
29 Mar Good Friday National Holiday
1 Apr Easter Monday National Holiday
25 Apr ANZAC day National Holiday
3 Jun King’s birthday National Holiday
28 Jun Matariki National Holiday
28 Oct Labour day National Holiday
25 Dec Christmas day National Holiday
26 Dec Boxing day National Holiday

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave 4 weeks Yes
Sick Leave 10 days Yes
Maternity Leave 52 weeks Yes

Leave Compliance

Payroll in New Zealand

Tw Payroll Img1

Payroll cycle

Employees are usually paid weekly, bi-monthly or monthly

Tw Payroll Img2

Minimum wage

The minimum wage in New Zealand depends on what type of category employees fit in. Adults (16+) and regular employees have a higher minimum wage rate than those who are starting or in Effective April 1, 2023, the minimum wage rates are:

Read more

Tw Payroll Img3

Overtime pay

There is no legal restriction regarding overtime pay. However, most employees are paid 1.5 times or 2 times their hourly wage depending on the agreement between the employer and employees. This payment is also called a penal rate, which is payment given aside from the standard rate.

How taxes work

Employer Payroll Tax

Tax Rate Contribution
3% KiwiSaver
1% Earners’ Levy (Working Safer Levy)

Employee Payroll Tax

Tax Rate  Contribution
3%* KiwiSaver
1.46% per $100 (as of April 2022 to March 2023) Earners’ Levy (Working Safer Levy)

* Employees can opt to increase their contributions to 4%, 6%, 8% or 10%.

Employees’ working safer levy rate changes annually. Below are the rates beyond 2023:

  •  1 April 2024 to 31 March 2025 $1.60 per $100
  •  1 April 2023 to 31 March 2024 $1.53 per $100 

Employee Income Tax

Income tax is levied at a progressive rate on all annual income as follows:

Annual Taxable Income (NZD, New Zealand Dollars) Income Tax Rate (%)
0 to 14,000 10.5%
14,000 to 48,000 17.5%
48,000 to 70,000 30%
70,000 to 180,000 33%
Above 180,000 39%

VAT

The standard VAT rate in New Zealand is 15% and 9% for the reduced VAT rate.

Bonus

13th-month salary

A 13th-month bonus is customary in New Zealand.

Employee Benefits

The New Zealand government has set a robust social welfare system, which provides benefits among their citizens and residents. Below are some of the benefits they offer to their employees: 

  • Unemployment benefit (Jobseeker support)
  • Domestic Purposes Benefit (Sole Parent Support)
  • Health benefits (Sickness Benefit and Invalid’s Benefit)
  • Pension Scheme (KiwiSaver, Accident compensation levies)
  • Superannuation

Employee offboarding

The termination process in New Zealand is simple. It can be done through resignation, retirement, dismissal, or redundancy.

The notice period for employees during the probationary period is from one to two weeks, while for permanent employees, it ranges from two to four weeks. 

There are no provisions for mandatory severance benefits in New Zealand. At the time of contract termination, employees are entitled to a ‘final pay’ that includes:

  • Payment for all the hours worked from the last pay until the end of employment
  • Payment for remaining annual leave, public and alternative holidays
  • Any additional lump sum or other payments owing
  • Payment for notice period, if notice is not provided
Tw Visa Img

Visa and
immigration

Foreigners have work visa options based on the purpose of their stay in the country. Below are the following:

Expand into
150+ countries

Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.

Expand into150+ countries