New Zealand
Hire Employees & Contractors

New Zealand

Compliantly hire your distributed team members in

New Zealand

Person working on laptop

Hiring in

New Zealand

isn't so simple. Borderless can help.

To hire new employees in

New Zealand

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

New Zealand

while staying fully compliant with local laws and compliance.

Primary Language

English

Currency

New Zealand Dollars $NZD

Payroll Frequency

Bi-Monthly/Monthly

Public Holidays

12 Days

Employer Taxes

28% - Flat rate

Cost of Living Index

$$$$ (15 of 139 Nations)

Statutory Leave

20 Days Per Year

Sick Leave

10 Days Per Year

Maternity Leave

26 Weeks

Important: Risks of misclassification

In many countries like

New Zealand

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The Adult Minimum Wage in New Zealand NZD $22.70 per hour. The Starting-Out Minimum Wage and Training Minimum Wage are NZD $18.16 per hour. The Adult Minimum Wage applies to all employees aged 16 and up who are not starting-out employees or trainees.

There is no minimum wage for employees under 16, but full employment rights still apply for all workers between the ages of 13 and 16. The Starting-Out Minimum Wage applies to workers who are 16 or 17 and who have not yet achieved six months of continuous employment and to 18 and 19-year-olds who have received one or more social security benefits before completing six months of continuous employment.

Six months of continuous employment is calculated by calendar date and not by hours worked. The Training Minimum Wage applies to employees 20 or older with an employment agreement requiring 60 credits per year to become qualified. This often applies to apprentices. However, the Training Minimum Wage does not apply to employees being trained to do their job, such as at the beginning of employment.

Overtime Pay

Not mandatory, but companies usually pay the same or a higher rate to employees working overtime. An employee's salary may never fall under the minimum hourly rate of NZ$18.90 for all the time they work, including overtime. Employment agreements should include overtime clauses and wages.

Additional Pay

New Zealand does not require any additional pay over and above.

Payroll Cycle

For customers of Borderless, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

The employer cost is generally estimated at 3.28% of the employee salary.

  • Kiwisaver - 3.00%
  • ACC levy - $0.08 per $100 of your liable payroll

Employee Costs & Taxes

Gross Annual Income vs Tax Rate (%)

  • Up to NZD - 14,000: 10.5%
  • Up to NZD - 48,000: 17.5%
  • Up to NZD - 70,000: 30%
  • Up to NZD - 180,000: 33%
  • Over NZD - 180,000: 39%

Employment Information

Termination Process

The termination process in New Zealand must adhere to a fair and reasonable process. The details are laid out in the Employment Contract offered at the beginning of employment.

A dismissed employee who is not on a trial period is entitled to request a written statement outlining the reason for dismissal within 60 days of being notified of the dismissal. The employer must provide this within 14 days of the request.

Notice period

Employers must give an appropriate amount of notice as listed in the employment agreement. Depending on the nature of the role, 4 weeks' notice is often considered fair in New Zealand.

Probation Period

Employers may use a paid probationary period for a variety of reasons including to assess an employee’s skills or to allow time for an employee to improve. All details must be outlined in the employment contract. The period must include a fair assessment of the employee in writing. A probation period of three months is common.

Severance Details

Severance pay must be given in accordance with the employment agreement.

Benefits of working in a country abroad

Borderless Benefits Packages in

New Zealand

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

New Zealand

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo