Your quick guide on talent and labor compliance norms in New Zealand
Capital
Wellington
Currency
New Zealand Dollar (NZD)
Languages
English (Official), Māori (Official), New Zealand Sign Language
Payroll Frequency
Weekly, Bi-Monthly, Monthly
GDP per Capita
$47,278
Employer Tax
4%
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
Local Universities
The top universities of New Zealand are as follows:
Local: 1
World: 137
Local: 2
World: 325
Local: 3
World: 416
Local: 4
World: 432
Local: 5
World: 488
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 |
Talent Sourcing Tips
Seek, Indeed, Student Job Search
2,480,000
Hays Specialist Recruitment, Drake New Zealand Limited, Randstad Limited
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.
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.
The probationary period for employees starts at a minimum of 1 month to a maximum of 3 months.
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 2 Jan | New Year Holiday | National Holiday |
| 6 Feb | Waitangi day | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 10 Apr | Easter Monday | National Holiday |
| 25 Apr | ANZAC day | National Holiday |
| 5 Jun | King’s birthday | National Holiday |
| 14 Jul | Matariki | National Holiday |
| 23 Oct | Labour day | National Holiday |
| 25 Dec | Christmas day | National Holiday |
| 26 Dec | Boxing day | National Holiday |
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 20 days | Yes |
| Sick Leave | 10 days | Yes |
| Maternity Leave | 26 weeks | Yes |
Payroll
Payroll Cycle
Employees are usually paid weekly, bi-monthly or monthly
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 training as you can see in the table below.
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.
Bonus
A 13th-month bonus is customary in New Zealand.
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:
Taxes
| Tax Rate | Contribution |
| 3% | KiwiSaver |
| 1% | Earners’ Levy (Working Safer Levy) |
| 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:
Income tax is levied at a progressive rate on all annual income as follows:
| Income Group | Income Rate |
| ≤ 1,166.67 | 10.5% |
| 1,166.67 – 4,000.00 | 17.5% |
| 4,001.00 – 5,833.33 | 30% |
| 5,833.33 – 15,000.00 | 33% |
| >15,000.00 | 39% |
The standard VAT rate in New Zealand is 15% and 9% for the reduced VAT rate.
Offboarding & Termination
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.
Employees will be paid for any unused annual leave or days in lieu as severance pay.
| Employment Period | Severance Pay Rate |
| < 12 months | 8% of normal pay |
| ≥ 12 months | 100% of normal pay |
Visa and Immigration
Foreigners have work visa options based on the purpose of their stay in the country. Below are the following:
| Type | Minimum Wage (NZD) |
| Adult | $21.20 |
| Starting | $16.96 |
| Training | $16.96 |
These minimum wage rates are covered by the Minimum Wage Act 1983. However, there are employee categories that are exempted from this act:
| Types of Visa | Duration | Note |
| APEC Business Travel Card | Up to 3 months | Requires Passport and APEC Business Travel Card to travel
A work visa is needed if you’re planning to stay longer than 3 months |
| Business Visitor Visa | Up to 3 months | You must hold NZeTA before traveling to New Zealand |
| Global Impact Work Visa | 36 months | Apply for permanent residence after 30 months on the Edmund Hillary Fellowship |
| Entrepreneur Work Visa | Up to 3 years | You can set up your business in New Zealand
Work up to three years on your business You can include your partner and dependents or children under 19 years old First 12 months, start-up stage of visa, then another 24 months to show business set-up |
| Entrepreneur Resident Visa | Indefinite | Partners and any dependents 24 and under may be included
You must have applied less than 2 years of being self-employed, have at least NZ$ 500,000.00 in invested capital, and created 3 jobs for the application to succeed |
