New Zealand is generally an agricultural country, and this sector is responsible for employing a majority of its labor population. However, the country’s technology sector is rapidly growing and has produced as many as 120,000 skilled professionals. New Zealand is known to have a very active start-up community which has increased by 30% from 2020 to 2021 alone.
The table below shows the average salaries for permanent employees in Auckland (2020). More information about average salaries in New Zealand can be found on Salary Explorer.
25% of the tech sector labour force expect a 1-3% annual increase in salary, another 26% expect a 3-6% annual increasse in salary while 14% expect no increase.
English Proficiency: Very High Proficiency
Number of LinkedIn Users (2021): 2,350,000
More information about job portals in New Zealand can be found here.
The adult (16 years old and above) minimum wage is $18.90 per hour or $756 for a 40-hour week before tax
Employees are usually paid weekly, bi-monthly or monthly
13th month salary
A 13th month bonus is not mandatory in New Zealand.
Working hours are not longer than 40 hours per week (excluding over time) unless both parties agree otherwise.
There is no legal restriction regarding overtime pay. But sometimes, employees are paid 1.5 times or 2 times their hourly wage.
The public holidays can be found here.
Minimum meal and rest breaks
Employees with regular working hours are entitled to 4 weeks of paid annual leave a year.
Starting July 24, 2021, Employees are entitled to 10 days of sick leave if:
They must provide documentation, such as a medical certificate for their employers
Employees are entitled to a maternity leave of at least 8 weeks and no longer than 14 weeks.
Spouses are entitled to parental/paternity leave of up to 2 weeks of unpaid leave.
Employees who become victims of domestic violence are entitled to have 10 days of leave. Additionally, they can request for a flexible working arrangement for up to 2 months.
The termination process in New Zealand is simple. It can be done through resignation, retirement, dismissal or redundancy.
If notice period is not stated in contract, a fair period of 2-4 weeks is usually given.
Employees will be paid for any unused annual leave or days in lieu.
Severance Pay Rate
A probation is not mandatory for New Zealand employees.
There is no mandatory social insurance scheme in New Zealand. However, the government has set up a voluntary scheme called the KiwiSaver. This insurance system encourages workers to allot savings for their retirement and pension. Employees may choose to contribute 3%, 5% or 8% of their gross salary as their social insurance premium.
ESOPs in New Zealand are offered to employees as a way to attract long-term commitment to companies. The share options will undergo the same vesting period of typically 3 to 4 years before they can fully convert them into shares by paying the exercise price.
The current VAT in New Zealand is 13%.