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New Zealand

Basic Economic Summary

Overview

New Zealand will see a rise in demand for the following roles: Tech Specialists, Data Scientists, DevOps, UX and UI Specialists.

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: 4,800,000 (2020)
  • Date Format: dd/mm/yy

Useful Information

  • GDP Per Capita (in USD): $42,084
  • Exchange Rate (NZD/USD): 0.721
  • PISA Ranking: 15
  • Number of University Graduates (2018): 47,432

Local Universities

Local Universities:

Renowned Local Universities:
University Number of Graduates (Undergrad) Description Rankings
University of Auckland 6,838(2018) The University of Auckland is New Zealand’s highest-ranked university. It is also the largest and most comprehensive, and is spread across six main campuses. World Univesity Ranking: 147, World Reputation Ranking: 176-200, Engineering and Technology Ranking: 126-150, Business and Economics Ranking: 101-125, Computer Science Ranking: 251-300
University of Otago 3,734 (2019) As New Zealand’s first university, founded in 1869, the University of Otago has earned an international reputation for quality research and teaching.
Based on national data, it has the best performance indicators of any university in New Zealand for successful completion of courses and qualifications, student progression to higher level study, and students retained in study.
World University Ranking: 201-250
University of Waikato 2,338 (2019) The University of Waikato is committed to delivering a world-class education and research portfolio, providing a full and dynamic university experience, distinctive in character, and pursuing strong international links to advance knowledge. World University Ranking: 501-600, Young University Ranking: 44
Victoria University of Wellington Information Unavailable Victoria University of Wellington was established in 1897.
The university has three campuses across Wellington: Kelburn, Pipitea and Te Aro with the Wellington School of Business and Government located on the Pipitea campus, close to Parliament and the central business district.
World University Ranking: 501-600, Business and Economics Ranking: 301-400, Computer Science Ranking: 301-400
University of Cantebury 2228 (2019) UC offers 70 degree programmes across five colleges, including Arts, Business and Economics, Education, Engineering and Science, and a School of Law. It also boasts the most extensive network of field stations for research of any New Zealand university. World University Ranking: 401-500, Engineering and Technology Ranking: 601-800, Business and Economics Ranking: 201-250, Computer Science Ranking: 501-600

Salary Data

Average Monthly Salary of Jobs:

The table below shows the average salaries for permanent employees in Auckland (2020). More information about annual salaries in New Zealand can be found on Robert Walters’ Salary Survey 2020.

Job TitleAverage Salary Range (NZD)Average Salary Range (USD)
Financial Accountant8,333 – 10,0005,933 – 7,120
Software Developer (Intermediate Level)6,667 – 8,3334,747 – 5,933
Data Scientist6,667 – 18,3334,747 – 13,054
UX Designer6,667 – 10,0004,747 – 7,120
Product Manager7,500 – 10,8335,340 – 7,714
National Sales Manager8,333 – 12,5005,933 – 8,901

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 (2019): 2,018,000

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

Taxes

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

Bonus

13th month salary

Not mandatory.

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

Leaves

Annual Paid Leave

Employees with regular working hours are entitled to 4 weeks of paid annual leave a year.

Sick Leave

Employees are entitled to 5 days of sick leave if:

  • They have been on a continuous contract for 6 months
  • They have been working for an average of 10 hours per week and at least one hour every week or 40 hours in every month.

Employees must provide a medical certificate.

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.

Offboarding & Termination

Termination Process

The termination process is simple.

Termination 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

Not mandatory.

VAT

15%

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