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:

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

1st Apr - 31st Mar

Tax cycle

10.5%-39%

Employee tax

Looking to employ staff in New Zealand hassle-free ?

Everything you need to know before
making your first hire in New Zealand

Contracts & Agreements

Compensation & Benefits

Taxes & Costs

Termination & Severance

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

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:

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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