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New Zealand

Basic Economic Summary


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. 

Basic Information

  • Local Languages: English (Official), Māori (Official), New Zealand Sign Language (Official)
  • Major Economic Hubs: Wellington, Auckland, Christchurch
  • Currency: New Zealand Dollar (NZD)
  • Population: 4,898,201 (2022)
  • Date Format: dd/mm/yy

Useful Information

  • GDP Per Capita (in USD): 38,800.00 (2022)
  • Exchange Rate (NZD/USD): 0.68
  • PISA Ranking: 15*
  • Number of University Graduates (2019): 55,635*

Local Universities

Local Universities:

Renowned Local Universities:

Salary Data

Average Monthly Salary of Jobs:

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.

Job Title Average Salary Range (NZD) Average Salary Range (USD)
Financial Accountant 40,500 – 201,000 27,575.64 – 136,856.88
Software Developer (Intermediate Level) 45,700 – 149,000 31,116.22 – 101,451.12
Data Analyst 42,200 – 142,000 28,733.14 – ​​96,684.96
UX Designer 37,800 – 124,000 25,737.26 – 84,429.12
Product Manager 75,300 – 227,000 51,270.26 – 154,559.76
National Sales Manager 100,000 – 319,000 68,088.00 – 217,200.72

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.

Talent Sourcing Tips

English Proficiency: Very High Proficiency

Number of LinkedIn Users (2021): 2,350,000

Top Local Job Portals: Seek, Indeed, Student Job Search

More information about job portals in New Zealand can be found here.

Top Recruitment Agencies: Hays Specialist Recruitment, Drake New Zealand Limited, Randstad Limited


Employer Payroll Tax

Type of Tax Contribution (%)
KiwiSaver 3%

The employer payroll tax can be found here.

Employee Payroll Tax

Type of Tax Contribution (%) Remarks
KiwiSaver 3% Employees can opt for higher rates if they wish to (4%, 6%, 8%, 10%)

Employee Monthly Income Tax

Income group (NZD) Contribution (%)
≤ 1,166.67 10.5%
1,166.67 – 4,000 17.5%
4,001 – 5,833.33 30%
> 5,833.33 33%

New Zealand follows a progressive income tax model. Links to the employee payroll tax and employee income tax.

Minimum Wage & Payroll

Minimum Wage

The adult (16 years old and above) minimum wage is $18.90 per hour or $756 for a 40-hour week before tax

Payroll Cycle

Employees are usually paid weekly, bi-monthly or monthly


13th month salary

A 13th month bonus is not mandatory in New Zealand.

Working Hours & Statutory Leave

Maximum working hours

Working hours are not longer than 40 hours per week (excluding over time) unless both parties agree otherwise.

Overtime pay

There is no legal restriction regarding overtime pay. But sometimes, employees are paid 1.5 times or 2 times their hourly wage.

Public Holidays

The public holidays can be found here.

Meal/Rest Breaks

Minimum meal and rest breaks

Duration of Work (in Hours) Break Time Number of Breaks
2 – 4 10-minute paid rest break 1
4.01 – 6 10-minute paid rest break 1
4.01 – 6 30-minute unpaid meal break 1
6.01 – 10 10-minute paid rest break 2
6.01 – 10 30-minute unpaid meal break 1
10.01 – 12 10-minute paid break 3
10.01 – 12 30-minute unpaid meal break 1
12.01 – 14 10-minute paid break 3
12.01 – 14 30-minute unpaid meal break 2
14.01 – 16 10-minute paid break 4
14.01 – 16 30-minute unpaid meal break 2


Annual Paid Leave

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 have six months’ current continuous employment with the same employer, or
  • they have worked for the employer for six months for:
  • an average of 10 hours per week, and
  • at least one hour in every week or 40 hours in every month.

They must provide documentation, such as a medical certificate for their employers

Parental Leave

Maternity Leave

Employees are entitled to a maternity leave of at least 8 weeks and no longer than 14 weeks.

Paternity Leave

Spouses are entitled to parental/paternity leave of up to 2 weeks of unpaid leave.

Domestic Violence 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. 

Offboarding & Termination

Termination Process

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

Notice Period

If notice period is not stated in contract, a fair period of 2-4 weeks is usually given.

Severance Pay

Employees will be paid for any unused annual leave or days in lieu.

Severance Pay Rate

Employment Period Severance Pay Rate
< 12 months 8% of normal pay
≥ 12 months 100% of normal pay

Probation period

A probation is not mandatory for New Zealand employees.

Employee Benefits


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. 

Employee Share Option Plan

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%.

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