Talent Wiki - New Zealand
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:
University of Auckland
Ranking
Local: 1
World: 137
University of Otago
Ranking
Local: 2
World: 325
University of Canterbury
Ranking
Local: 3
World: 416
Victoria University of Wellington
Ranking
Local: 4
World: 432
Massey University
Ranking
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
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
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 2023
| 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 |
Employee Leaves
| 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
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
Taxes
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:
| 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% |
VAT
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.
Severance Pay Rate
| 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:
