Employer of Record in New Zealand: 2026 Cost and Compliance Guide

New Zealand's statutory employer on-costs are low. The main ones are a KiwiSaver retirement contribution of 3.5% for employees in the scheme, and ACC levies that fund the no-fault accident compensation system.

The New Zealand-specific issue for EOR is the triangular employment rules. Where an employee works under the control or direction of a business that isn't their employer, that controlling third party can be joined to a personal grievance and ordered to pay remedies. In an EOR arrangement, that is you.

2026 also brought major changes to dismissal law: employees earning $200,000 or more on new agreements can no longer bring an unjustified dismissal claim, unless the parties agree otherwise. This guide covers costs, the main employment rules, provider comparison and when to set up your own company. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in New Zealand employs staff on behalf of foreign businesses: it signs the employment agreement, registers as an employer with Inland Revenue, runs PAYE payroll, pays KiwiSaver contributions, and handles leave, holidays and termination.

New Zealand law recognises this kind of arrangement. Under the triangular employment provisions of the Employment Relations Act, a business that controls or directs an employee's work without being their employer is a controlling third party, and can be brought into the employee's personal grievance.

Ask each provider how your agreement allocates responsibility if a grievance names you as a controlling third party.

New Zealand's Employment Relations Act deals directly with triangular employment: an employee is employed by one business but works under the control or direction of another. The second business is a controlling third party. An EOR arrangement, where the provider employs and you direct the work, fits this description.

If the employee raises a personal grievance and applies to the Employment Relations Authority, the employee or the employer can apply to join the controlling third party to the proceedings. The Authority or court must do so if the third party was notified in time and there is an arguable case that its actions caused or contributed to the grievance, and it can also join a third party on its own motion.

Remedies are then split according to how much each party's actions contributed. The controlling third party can be ordered to pay lost wages or compensation, though from 2026 these are limited where the employee's own conduct contributed.

What to ask an EOR

New Zealand employment cost has four layers: gross salary, the employer's KiwiSaver contribution, ACC levies (the Work levy, set by industry, and the Working Safer levy), and the EOR fee.

The ACC Work levy rate depends on the employer's classification unit. The default here is the 2026/27 rate for labour supply services with office staff on hire, which is how many staffing businesses are classified; other classifications are available in the estimator.

Annual cost at example salaries

What these figures include and exclude

• KiwiSaver contributions are due only for employees in KiwiSaver or a complying fund, and stop while an employee has an approved savings suspension.
• The ACC Work levy is charged on liable earnings up to NZ$156,641 per employee in 2026/27. Rates vary widely by industry; check the provider's classification unit.
• Employee KiwiSaver deductions and PAYE income tax are deducted from pay and are not employer costs.
• New Zealand has no statutory redundancy pay. Compensation is due only if the employment agreement provides for it.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in New Zealand.

New Zealand employment law is set mainly by the Employment Relations Act 2000, the Holidays Act 2003 and the Minimum Wage Act 1983. Major changes to the Employment Relations Act took effect on 21 February 2026.

Minimum wage

NZ$23.95 an hour for adult workers from 1 April 2026 (NZ$958 for a 40-hour week). Starting-out workers and trainees get at least NZ$19.16 an hour.[4]

Annual holidays

At least 4 weeks' paid annual holidays after each completed 12 months of continuous employment.[5]

Public holidays

12 public holidays: Christmas Day, Boxing Day, New Year's Day, 2 January, Waitangi Day, Good Friday, Easter Monday, ANZAC Day, the King's Birthday, Matariki, Labour Day and the provincial anniversary day. Employees who work on a public holiday are paid at least time and a half, and get an alternative paid day off if it would otherwise have been a working day.[5]

Sick leave

10 days' paid sick leave a year after 6 months' continuous employment, usable for the employee's own illness or to care for a spouse, partner or dependant. Unused sick leave carries over, up to a maximum entitlement of 20 days.[5]

Trial periods

An employment agreement can include a written trial period of up to 90 days for an employee new to the employer. If the employer gives notice of dismissal during it, the employee can't bring a personal grievance for unjustified dismissal.[6]

Notice periods

There is no statutory minimum notice period. Notice is set by the employment agreement; if it doesn't specify one, reasonable notice must be given, generally seen as 2 to 4 weeks depending on the circumstances.[8]

Dismissal

A dismissal must be justifiable: what a fair and reasonable employer could have done in all the circumstances, following a fair process. Since 21 February 2026, minor process defects that didn't treat the employee unfairly don't make a dismissal unjustified.[6]

High earners

Employees with annual remuneration of NZ$200,000 or more can't bring a personal grievance for unjustified dismissal, unless the employer and employee agree in writing that these protections still apply. The threshold adjusts annually from 1 July 2027. For employees already in their role on 21 February 2026, the rule starts to apply 12 months later.[7]

Redundancy

Redundancy must be genuine and follow a fair process, including exploring redeployment. There is no statutory redundancy compensation; it is payable only if the employment agreement provides for it.[9]

Triangular employment (EOR relevance)

If an employee raises a personal grievance about something that happened while working under the control or direction of a controlling third party, the third party can be joined to the proceedings and ordered to pay a share of the remedies reflecting its contribution.[6]

• From 1 April 2028

  New Zealand KiwiSaver employer contribution rises to 4%

  Employer cost for KiwiSaver members rises by 0.5% of gross pay: NZ$475 a year on a NZ$95,000 salary.

• From 21 February 2027

  New Zealand high-earner dismissal rule extends to existing employees

  Review agreements for employees earning NZ$200,000 or more, and decide whether to keep dismissal protections in writing.

• Effective 1 April 2026

  New Zealand KiwiSaver employer contribution rises to 3.5%

  Employer cost for KiwiSaver members rises by 0.5% of gross pay.

• Effective 1 April 2026

  New Zealand minimum wage rises to NZ$23.95 an hour

  Check junior and hourly pay close to the minimum.

See every country in the employment law changes tracker.

These EOR providers publish New Zealand pages and starting prices that apply across their country coverage. Prices are their own published starting rates in USD, from our pricing tracker.

In New Zealand, ask how the provider handles liability as between it and you if a grievance names you as a controlling third party, and which ACC classification unit it uses.

Compare providers for New Zealand

• RemoFirst vs PlayrollIn New Zealand: US$199 vs US$399 a month (published starting prices).
• Oyster vs RemoFirstIn New Zealand: US$699 vs US$199 a month (published starting prices).
• Globalization Partners vs Atlas HXMIn New Zealand: US$599 vs US$599 a month (published starting prices).
• RemoFirst vs Atlas HXMIn New Zealand: US$199 vs US$599 a month (published starting prices).

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The usual alternatives are a New Zealand limited company or registering your foreign company as an overseas company in New Zealand. Employing directly removes the triangular arrangement: your own entity employs and directs the work.

Running costs include accounting, payroll, tax filings and annual returns.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree the annual salary, hours, and whether to use a 90-day trial period.

2. 2

   Compare itemised quotes1–3 days

   Request New Zealand quotes covering the fee, KiwiSaver, ACC levies and offboarding. Use the estimator to sanity-check totals.

3. 3

   Sign the commercial agreement

   Review liability if you are joined to a grievance as a controlling third party, notice and redundancy terms, IP assignment and privacy.

4. 4

   Employment agreement1–2 weeks

   The provider issues a written employment agreement, including any trial period and the notice period, before work starts.

5. 5

   Ongoing administrationEach pay period

   Payroll with PAYE and KiwiSaver, leave and public holiday records, and ACC levy invoices.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Employer contributions to KiwiSaver schemes and complying funds; KiwiSaver changes

   Inland Revenue (ird.govt.nz)

   Compulsory employer contribution of at least 3.5% of gross salary or wages from the first pay date on or after 1 April 2026, rising to 4% from 1 April 2028; ESCT on employer contributions.

2. 2
   Accident Compensation (Work Account Levies) Regulations 2025 (SL 2025/17)

   New Zealand Legislation

   Work levy rates per $100 by classification unit for 2026/27 (Schedule 2) and maximum liable earnings of $156,641 for 2026/27 (reg 6).

3. 3
   Understanding levies if you work or own a business

   ACC (acc.co.nz)

   Employers pay the Work levy and the Working Safer levy, a flat $0.08 per $100 of liable payroll collected for WorkSafe.

4. 4
   Minimum Wage Order 2026 (SL 2026/16)

   New Zealand Legislation

   Adult minimum wage $23.95 an hour ($958 a 40-hour week); starting-out and training rates $19.16; in force 1 April 2026.

5. 5
   Holidays Act 2003

   New Zealand Legislation

   Annual holidays (s 16), public holidays (s 44), time and a half and alternative holidays (ss 50, 56), sick leave (ss 63, 65, 66).

6. 6
   Employment Relations Act 2000 (as at 10 July 2026)

   New Zealand Legislation

   Trial periods (ss 67A–67B), test of justification (s 103A), joining a controlling third party (s 103B) and remedies against it (s 123A).

7. 7
   Employment Relations Amendment Act 2026 and MBIE summary

   New Zealand Legislation / Employment New Zealand

   In force 21 February 2026: NZ$200,000 remuneration threshold for unjustified dismissal claims (ss 67I, 113A, 113B), annual adjustments from 1 July 2027, 12-month transition for existing employees, contractor gateway test, reduced remedies for contributing conduct.

8. 8
   Giving notice

   Employment New Zealand (MBIE)

   Notice is set by the employment agreement; without one, reasonable notice applies, generally 2 to 4 weeks.

9. 9
   Redundancy

   Employment New Zealand (MBIE)

   Fair process and redeployment; redundancy compensation only if stated in the employment agreement.

New Zealand has some of the lowest statutory employer on-costs in our index: about 3.7% for KiwiSaver and ACC levies, so the EOR fee is often the largest cost on top of salary.

The structural point is liability. As the business directing the work, you are a controlling third party and can be joined to a personal grievance. Make sure the EOR contract allocates that risk, and check how the 2026 reforms, including the NZ$200,000 threshold, are reflected in employment agreements.

For a long-term team, compare an EOR against your own company with our EOR vs local entity guide. For the neighbouring market, see Australia.