EOR New Zealand
Employ the best talent in New Zealand using EOR
An Employer of Record (EOR) solution lets you employ and manage workers efficiently in New Zealand by taking care of:
- HR Administration
- Payroll
- Compliance
Leading enterprises across all industries rely on us
A quick glimpse of hiring in New Zealand
NZD $
Salary payment currency
English
Contract language
40
Working hours per week
22.70 NZD/hr
Min. hourly salary
4.39%
Employer cost
11
Bank holidays per year
Looking to employ staff in New Zealand hassle-free ?
Everything you need to know before
making your first hire in New Zealand
Hire and manage your workforce anywhere in APAC
Contracts & Agreements
The three main types of employment agreements in New Zealand are permanent employment agreements, fixed-term employment agreements, and casual employment agreements. In determining the best agreement, employers should consider the project length, what is common in the industry, and the circumstances which led to the position becoming available.
Permanent Employment Agreement
Employees on permanent agreements work indefinitely unless either they or their employer terminate their employment. Permanent employees can work full-time or part time, and benefit from increased job security since their is no end date of employment.
Fixed-Term Employment Agreement
A fixed-term employment agreement is a temporary agreement that ends on a specified date or when a specific event happens. There must be a genuine reason for an employer to employ a person on a fixed-term basis and this must be mentioned in the employment contract.
Casual Employment Agreement
Casual employment agreements are often used when you want to employ a person for irregular or intermittent work. These employees don't have any set working hours and are employed on an “as and when needed” basis.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.
Compensation & Benefits
Minimum Pay
As of April 1, 2023, the minimum wage in New Zealand is NZD 22.70/hour. For young employees starting their career, and for those with limited experience, the minimum wage is NZD 18.16 an hour.
Payout Cycle
Employee salary can paid out on a weekly, bi-weekly, or monthly basis. It must be specified on the employment contract. The most common frequency of payment in New Zealand is monthly which is paid at the end of each calendar month.
Working Hours
New Zealand has a typical work day of 8 hours and a 40-hour work week from Monday to Friday for a full-time employee. Overtime may be paid for work performed beyond normal hours or it may be factored into the employee’s base salary.
Guaranteed Benefits
- A high-quality public health care system is available in New Zealand, which is subsidized for eligible individuals. Treatments and surgeries are covered by the government-funded institution.
- Employees benefit from coverage under the Health and Safety at Work Act 2015. The legislation covers both physical and mental health of workers by granting them protection should they choose to stop work due to safety concerns.
- KiwiSaver is a work-based pension fund, available to employees between the ages of 18 and 65. Employers are required to match the contribution of the employee to this fund. An employee may opt-in and contribute 3%, 4%, 6%, 8% or 10% of their basic salary each month. If an employee enrols into KiwiSaver, an employer must also make a contribution of at least 3% of gross earnings.
Ask us for a Salary Benchmark for your EOR worker.
Streamline payroll, taxes, and every other HR administration task with one service: Employer Of Record (EOR)
Taxes & Costs
Tax for Employees
Employees are subjected to pay taxes as per the following income brackets by law:
| Taxable income band (NZD) | National income tax rate | |
|---|---|---|
|
Up to NZD 14,000 |
10.5% |
|
|
NZD 14,000 - NZD 48,000 |
17.5% |
|
|
NZD 48,000 - NZD 70,000 |
30% |
|
|
NZD 70,000 - NZD 180,000 |
33% |
|
|
Above NZD 180,000 |
39% |
|
Employer Cost
Employers are required to contribute 3% of an employee’s salary into the KiwiSaver pension scheme. Additionally, employers mus also contribute 1.39% as Accident Compensation Corporation tax (ACC), which covers employees' rehabilitation and weekly compensation after an injury.
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.
Leaves
A worker is entitled to leave depending on the type of employment agreement under which they are engaged. The main types of leave in New Zealand include:
Annual Leave
Employees in New Zealand are entitled to 4 weeks of paid annual leave after completion of 12 months continuous work. Accrued annual leave does not expire and will remain an entitlement until the days are used, cashed-up, or the employment ends.
Parental Leave
Employees that have worked for at least 6 months are eligible for up to 26 weeks of paid maternity leave, starting not earlier than 6 weeks before the due date. Paternity or partner's leave can be taken for 1 week (for employees working for at least 6 months) or 2 weeks (for employees working for at least 12 months).
Sick Leave
Every year, employees in New Zealand can take up to 10 days of paid sick leave. It can be used when a worker is sick or injured as well as when their spouse, partner, dependent child, or other person who depends on them is sick or injured. Employers may request proof of illness in some cases.
Additionally, employees in New Zealand can take different kinds of leaves like Bereavement leave, Stress leave, Jury
Service leave, and more. For a full list of leaves and public holidays that your new hire in New Zealand is entitled to,
talk to one of our experts
.
Termination & Severance
Termination
An employee can be terminated for multiple reasons ranging from unexplained absence to resignation or retirement. A notice period specified is commonly specified in an employment contract with 2 to 4 weeks being best practice.
Severance Pay
Severance pay is not mandatory in New Zealand. If an employment agreement mentions severance pay, the employer will have to pay it after termination. However, if an employment agreement doesn't mention any such clause, an employee isn't legally entitled to severance pay.
Ready to expand your business across multiple countries in the APAC region?
Why choose an Employer Of Record (EOR)
in New Zealand?
An Employer Of Record (EOR) solution is relevant for multiple use cases:
- Enter new markets quickly & expand internationally with ease.
- Hire skilled talent in a foreign location.
- Avoid contractor misclassification & convert contractors to employees.
- Mobilize existing talent for secondment or remote opportunity.
- Focus on core business activities while you outsource HR administration.
Why trust BGC as your Employer Of Record (EOR)?
Industry Expertise
Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.
Technology Leverage
Streamline operations with advanced technology which result in quicker time to onboard and pay.
Cost-effective pricing
Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.
Talk to us and make hiring in APAC a breeze!
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