Our Locations
New Zealand
Looking to employ or expand your business in New Zealand?
To help get you started, we are pleased to provide an overview of key information about New Zealand’s employment market, including Hiring Regulations, Tax Rates, Termination Regulations, National Public Holidays and Employee Benefits.
Want to expand into New Zealand?
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
"*" indicates required fields
Expanding into New Zealand
Key facts
Contract Types
Contracts in New Zealand can be Fixed term or Indefinite.
Probation
There are 2 kinds of probation periods in New Zealand, trial and probation. Trial can be up to 90 calendar days if agreed by both parties and is used the first time the employee has been employed by this employer. Probation can be used when an existing employee starts a different job and can be up to 180 days and must be included in the employment contract. Employees on trial have no grounds for unfair dismissal whereas those on probation may make a case in the event of dismissal.
Working Hours
Employees usually work 7.5 to 8 hours per day, 40 hours per week.
Overtime
Overtime should be stipulated in the contract but is usually paid at the rate of 150% and mandated at this rate for working on public holidays.
Other Financial
Monthly or bi-weekly payroll. There are no requirements for a 13th month salary.
Tax rates valid for 2025
Corporation Tax
28%
Consumption Tax
15%
Employers’ Contribution
Total 4% including
3% Kiwisaver contribution
Employees’ Contributions
3% to Kiwisaver (optional)
Income Tax Rates
0 to 15,600 NZ$ 10.50%
15,601 to 53,500 NZ$ 17.50%
53,501 to 78,100 NZ$ 30%
78,101 to 180,000 NZ$ 33%
Over 180,001 NZ$ 39%
Notice
The notice period should be stated in the employment contract but is usually 4 weeks.
Employers may pay in lieu of notice if this is agreed in the contract.
Process
Unless termination is for reasons such as gross misconduct, then the appropriate notice should be given. There should always be a good reason for dismissal including for employees on fixed term contracts.
Employees should also be given a reason for termination in writing if they request this.
In cases of redundancy there is a defined process to follow.
Severance Pay
There is no mandatory severance pay in New Zealand, though some employment contracts will specify the pay applicable.
During Trial
Employees can be dismissed with the notice period specified in the contract, so long as notice is given before the trial period ends.
Annual Leave 2025
National Public Holidays: 11
New Year’s Day – 1st January
Day Given in Lieu: Yes
Type: National
Day after New Year’s Day – 2nd January
Day Given in Lieu: Yes
Type: National
Wellington Anniversary Day – 20th January
Day Given in Lieu: NA
Type: MWT* Wellington
Northland Anniversary Day – 27th January
Day Given in Lieu: NA
Type: Northland
Auckland Anniversary Day – 27th January
Day Given in Lieu: NA
Type: AUK, BOP, GIS, HKB*, MWT*, WKO
Nelson Anniversary Day – 3rd February
Day Given in Lieu: NA
Type: CAN*, NSN, TAS, WTC*
Waitangi Day – 6th February
Day Given in Lieu: Yes
Type: National
Taranaki Anniversary Day – 10th March
Day Given in Lieu: NA
Type: Taranaki
Otago Anniversary Day – 24th March
Day Given in Lieu: NA
Type: Otago
Good Friday – 18th April
Day Given in Lieu: NA
Type: National
Easter Monday – 21st April
Day Given in Lieu: NA
Type: National
Southland Anniversary Day – 22nd April
Day Given in Lieu: NA
Type: Southland
ANZAC Day – 25th April
Day Given in Lieu: Yes
Type: National
King’s Birthday – 2nd June
Day Given in Lieu: NA
Type: National
Matariki – 20th June
Day Given in Lieu: NA
Type: National
South Canterbury Anniversary Day – 22nd September
Day Given in Lieu: NA
Type: Canterbury*
Hawke’s Bay Anniversary Day – 24th October
Day Given in Lieu: NA
Type: Hawke’s Bay*
Labour Day – 27th October
Day Given in Lieu: NA
Type: National
Marlborough Anniversary Day – 3rd November
Day Given in Lieu: NA
Type: Marlborough
Canterbury Anniversary Day – 14th November
Day Given in Lieu: NA
Type: Canterbury*
Chatham Islands Anniversary Day – 1st December
Day Given in Lieu: NA
Type: CIT
Westland Anniversary Day – 1st December
Day Given in Lieu: NA
Type: West Coast*
Christmas Day – 25th December
Day Given in Lieu: Yes
Type: National
Boxing Day – 26th December
Day Given in Lieu: Yes
Type: National
Comment
*Only part of the territory celebrates the holiday.
AUK Auckland, BOP Bay of Plenty, CAN Canterbury, CIT Christchurch, GIS Gisborne, HKB Hawke’s Bay, NSN Nelson, MWT Manawatū-Whanganui, TAS Tasman, WKO Waikato, WTC West Coast
If an employee works on a public holiday that would otherwise have been a working day, then the employee receives an alternative holiday.
Paid legal entitlement
New Zealanders are entitled to 20 days’ paid leave after 12 months of employment. Those on a fixed term contract for less than 12 months receive 8% holiday pay instead.
Carry over permitted
The law allows for employees to carry over unused holiday which can be cashed out at termination. Employees may request that 5 days of carried over holiday be paid out in the following holiday year. The employer does not have to agree to this unless it is in the Company policies and procedures or in the contract. Employers cannot pay out carried over holiday unless the employee requests it. An employee must under all circumstances have 15 days’ leave entitlement for the year before any carry over is paid out.
Sick
Employees are entitled to 10 days’ paid sick leave after 6 months of service. Employees can carry over 10 days per year of sick leave up to a maximum of 20 days of current entitlement in any year. Employees can also take sick leave to care for a dependent. Sick leave cannot be cashed in unless the employment agreement allows for this. Sick leave is not pro rated, thus even an employee who works 3 days a week will be entitled to 10 days’ sick leave per year.
Maternity
Employees with 6 months’ service are entitled to 26 weeks “primary carer” leave which is paid for by the government up to a maximum of $712.17 gross per week. An additional 52 weeks “extended leave” is available which can be shared between the parents and is subject to deduction of the amount of primary carer leave already taken.
Employees are also entitled to 10 days special unpaid leave for pregnancy- related appointments such as ante natal classes, or hospital appointments.
Primary carer leave is available to all employees who have the primary responsibility for care. In cases of surrogacy both the birth mother and primary carer have the same entitlement.
The leave starts on the date of birth but can commence 6 weeks earlier for pregnant employees. If leave starts before the due date the employee is always entitled to 20 weeks after the birth even if this means the leave taken is in excess of 26 weeks.
This leave can have an impact on the amount an employee will receive whilst on annual leave as their average pay in the preceding period will be less than a normal employee.
Paternity
New fathers are entitled to 1 week of unpaid leave after 6 months’ employment and 2 weeks’ unpaid leave after 12 months’ employment which can be taken within 21 days before or after the birth.
Bereavement
Employees are entitled to a minimum of 3 days’ leave in the event of the death of an immediate family member and 1 day for more distant relatives or associates. They are also entitled to 3 days’ leave in the event of a stillbirth or miscarriage.
Family Violence Leave
Employees are entitled to 10 days’ paid leave if the employee has worked for more than 10 hours per week for over 6 months. The leave can be taken regardless of when the domestic violence occurred, even if it is before the employee joined the current employer, or before 2019 when the law changed. Employees can also request short term flexible working arrangements under such circumstances.
General Election Leave
Employees must be allowed to leave at 3.00pm to vote, or otherwise given 2 hours off.
Medical
Private medical insurance is commonly offered by competitive employers. For small companies without the headcount for a group policy, private medical is usually provided by way of an allowance to cover the costs. Note that insurance brokers in New Zealand charge a setup fee (c. 2500$) for group policies.
Life
It is common for competitive employers to provide life insurance.
Pensions
In addition to the state pension, it is mandatory in New Zealand to offer employees the chance to pay in to the KiwiSaver scheme. If an employee opts into this, and is eligible, the employer must also make contributions. The minimum is 3% from employee and employer, but both can choose to make higher contributions (4%, 6%, 8% or 10%).
We make expansion in New Zealand simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.
We’re a people business with employee management software, not a software business that works in employee management!
At Leap29 we offer access to the latest technology and software to easily and effectively manage your employees from anywhere in the world.
Our bespoke online portal LeapForward helps ensure a smooth onboarding process, manages monthly payroll and easily facilitates additional bonuses and expenses. By streamlining your processes through our online portal, it will help you attract and retain great talent and take the pain out of payroll management.
Integrated fully with our global EOR services, LeapForward comes at no additional cost to you but is guaranteed to save you time and money whilst simplifying your employee management procedures.
New Zealand
Expansion Resources
Want to find out more about employment in New Zealand? Check out our additional resource pages below.
Our Recruitment Services
A global recruitment partner you can trust
We solve global recruitment challenges for businesses large and small. Whether you’re building out a new team, expanding into another country or looking for a confidential executive level hire, you can trust us to deliver.
Need 80 contractors in Brazil? Looking for just one very special permanent hire? Want us to take care of your global HR? It’s all in a day’s work at Leap29.
Whatever and wherever your mandate, we can help.
Permanent Recruitment
Connect with great permanent talent to drive your business forward. We help you find both key strategic hires to lead organisational growth and project specialists to deliver on deadlines and budgets.
Workforce Management
Reduce the complexity of managing workers in different countries and save yourself time, energy and money.
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
Australia
Norway
France
Mexico
India
Panama
Turkey
Germany
Malaysia
Poland
Talk to an expert today
Whatever stage you’re at in your global expansion journey, we can help.
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
"*" indicates required fields
This page is for informational purposes only and does not constitute legal or professional advice.