Know Your Rights
Starting a New Job
Your Employment Agreement
Your employer must provide a written employment agreement. This legally outlines your employment type, hourly wage or salary and leave entitlements.
IR330 Tax Form
You must fill out an IR330 form to determine your tax code. This code tells your employer how much tax to deduct and if you have student loan repayments.
Your KS2 KiwiSaver Form
New Zealand citizens or permanent residents aged 18 to 64 are automatically enrolled in KiwiSaver.
You can choose from over 30 KiwiSaver schemes and switch at any time. If you do not pick one, the Inland Revenue Department (IRD) assigns a default provider.
You can opt out between your 14th day and 8th week on the job or apply for a savings suspension later on.
Your Hours and Payslips
You must be paid at least the minimum wage at agreed regular times. To ensure you get the exact holiday pay you are owed, your working hours must be tracked day by day on a timesheet.
Your Pay
Every employee in New Zealand has fundamental employment rights. You must be paid the minimum wage (or more) at agreed intervals, which are usually weekly, fortnightly or monthly. Legally, you have a right to be paid in cash, though almost everyone prefers a direct credit made into their bank account.
Your pay can be made up of several different payment types depending on your agreement, including:
Standard wages (an hourly rate).
A salary (a fixed annual amount).
Penal rates for specific shifts.
Piece rates or commissions.
Incentives and productivity payments.
If your employer wants to alter your agreed pay structure, you must agree to any changes in writing.
Recording Your Hours
To make sure your holiday pay is calculated correctly under the Holidays Act 2003, your hours must be recorded by day, not by week. This could mean you need to complete a timesheet.
If you work fixed hours, it is likely your employer will automatically populate a timesheet for you.
Employee Payslips
Surprisingly, employers are not legally required to give you a payslip unless it is explicitly written into your employment agreement.
If you do receive payslips, they can legally look like anything from a handwritten note to an email summary, or a mobile app download.
Your employer must make deductions from your pay like income tax, student loans, child support and KiwiSaver before the money hits your bank account. Your total earnings before any deductions are called your gross pay, while the money you take home is your net pay.
Income Tax
Pay As Your Earn (PAYE) is just that. It is income tax that is deducted from every pay, as you earn it.
New Zealand has a graduated income tax system, meaning there isn't just one set tax rate. Specific tax rates apply to progressive income ranges. As you earn more, your extra earnings move into a higher range and are taxed at a different rate.
Student Loans
If your tax code ends in "SL", you must make student loan repayments once you earn over a set threshold. Your employer will deduct 12 cents for every dollar you earn above this limit.
This rule also applies to all secondary income.
Child Support Payments
If notified by IRD, your employer is legally to deduct child support payments from your wages. These deductions have priority over every other deduction except PAYE tax.
Because this is personal, your employer must strictly respect your right to privacy regarding these deductions.
KiwiSaver
You can choose to contribute 3.5%, 4%, 6%, 8%, or 10% of your pay to your KiwiSaver fund.
On top of your savings, your employer must contribute a minimum of another 3.5% of your gross pay to your account.
Your personal contribution is taxed as PAYE. Your employer’s contribution is taxed under a scheme called Employer Superannuation Contribution Tax (ESCT).
Your Right To Time Off
Under the Holidays Act (2003), every employee is entitled to paid time off. This includes 4 weeks of annual leave, 10 days of sick leave and dedicated time off for family violence and bereavement. These rights are not reduced for part-time staff.
Annual Leave
You receive four weeks of paid annual leave after 12 months of continuous work.You can request leave in advance, but your employer can refuse your request.
Casual or short-term fixed workers can receive holiday pay as a regular 8% cash premium on top of earnings only if agreed in writing and shown separately on payslips.
You can request to cash out up to 1 week of annual leave per year, but your employer does not have to agree.
Sick Leave
After 6 months of continuous work, you receive 10 days of paid sick leave annually to use for yourself or dependents. This is never prorated. Part-time employees still get the full 10 days.
You can accumulate up to 20 days. Unused sick leave cannot be cashed out or paid upon resignation.
Bereavement Leave
After 6 months, you get 3 days of paid leave for immediate family losses. 1 day of bereavement leave may be granted for the death of a non-immediate family member if your employer agrees that you have suffered a bereavement.
Bereavement leave can be used flexibly at any time. It does not need to be consecutive and is only paid if it lands on a normal working day.
Family Violence Leave
Family violence leave provides 10 days of paid leave per year to deal with domestic abuse effects. This applies even if the abuse occurred before your employment started.
In addition to family violence leave, you can request short-term flexible work changes.
New Zealand has 12 public holidays a year. Working on a public holiday guarantees you time-and-a-half pay and potentially a paid alternative day of leave. You are entitled to public holiday benefits as soon as you start working for an employer.
Working on a Normal Working Day
If you work on a public holiday and it falls on a day you would normally be scheduled to work, you must be paid time-and-a-half for every hour you work.
You are also entitled to an alternative holiday (one full paid day off in lieu). This applies if you are part-time or full-time.
Working on an Unscheduled Day
If you are not normally scheduled to work on the public holiday but offer to work, you are paid time-and-a-half for your hours.
You are not entitled to an alternative holiday because it is not an otherwise working day for you.
Not Working on a Normal Working Day
If you are normally scheduled to work on the day of a public holiday but are not required to work on it, you are paid your normal daily pay for the public holiday.
Not Working on an Unscheduled Day
If you are not normally scheduled to work on the public holiday and you do not work, you do not get paid for the public holiday.
Leaving Your Job
Your final pay must settle all remaining hours and holiday balances by your final payday at the latest.
Your Final Pay
When leaving a job, your final pay must be paid to you on your regular payday for that pay period at the absolute latest. It can be processed earlier on your last day of work.
Your final pay includes payment for all hours worked since your last pay cycle. It also includes a payout of any unused annual holidays or accrued alternative holidays.
What Affects Your Final Pay
For employees who have worked for their employer for 12 months or more, two unique calculation rules apply:
The Public Holiday Extension Rule:
Unused annual holidays effectively extend your official employment period. If a recognised public holiday occurs during this extension window, you must be paid for it.
For example, if your last day is right before Good Friday and you have 10 days of unused annual leave, you must be paid for those 10 days plus extra for Good Friday and Easter Monday.
The 8% Accumulation Rule:
Any outstanding annual holidays remaining at termination continue to attract an additional 8% holiday pay entitlement calculation on top of the payout.
For example, if you are being paid out for 80 hours of leave, you receive an extra 6.4 hours of pay.
Frequently Asked Questions
Am I legally required to have a written contract?
Yes. Employers must provide a written employment agreement to all employees before their first day of work.
Can my employer lock me into a specific KiwiSaver scheme?
No. You have the right to choose any scheme and can switch providers whenever you want.
Can my boss change my hourly rate without telling me?
No. Once pay structures are agreed in your contract, you must agree to any changes in writing.
Why are my hours logged by day instead of by weekly?
You must break timesheets down by day to accurately calculate annual holidays in compliance with the Holidays Act 2003.
Is my company breaking the law if they don't give me a payslip?
No. You are not legally entitled to a payslip unless it is explicitly stated in your employment agreement. You can request a breakdown of your pay and how it was calculated at any time.
Is my boss allowed to tell people I make child support payments?
No. Employers are legally required to respect your right to privacy when it comes to child support payments.
What percentage of my income can I choose to save in KiwiSaver?
You can choose a rate of 3.5%, 4%, 6%, 8%, or 10% of your pre-tax pay.
Does my employer have to match my retirement savings?
Your employer must contribute a minimum of 3.5% of your gross pay to your KiwiSaver account. If you choose to contribute more than 3.5%, your employer doesn’t have to contribute more than 3.5%.
If I work part-time, do I only get a proportion of my sick leave?
No. Sick leave is never prorated. Part-time staff receive the full 10 days per year.
Do I have to take bereavement leave immediately following a loss?
No. It can be taken at any time and does not have to be taken on consecutive days.
Can I get a cash payout for my leftover sick leave when I resign?
No. Employees cannot cash out unused sick leave, and it is never included in a final pay.
What do I earn if I am asked to work on a public holiday?
You must be paid at least time-and-a-half for your hours. If it lands on a day you usually work, you also get a fully paid alternative day of leave.
Do I lose my public holiday benefits if I am a brand-new employee?
No, employees are entitled to public holiday benefits as soon as they start working for an employer.
When is the latest my employer can give me my final pay?
Your final pay must be paid on the regular pay day for their final period of employment at the absolute latest.