Cost to Hire an Employee in New Zealand (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 3.7% at a NZ$95,000 salary: NZ$3,544 a year, of which the largest is kiwiSaver employer contribution.
• An EOR fee, if you hire without your own entity. The providers in our New Zealand guide publish starting prices of US$199–699 per employee per month.

Mandatory employer costs at a NZ$95,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• KiwiSaver (employer): 3.5% of gross pay from 1 April 2026; 4% from 1 April 2028
• ACC levies (employer): Work levy by industry plus 0.08% Working Safer levy
• Minimum wage: NZ$23.95 an hour (from 1 April 2026)
• Paid annual leave: 4 weeks after 12 months, plus 12 public holidays
• Sick leave: 10 days a year after 6 months

• 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.

Without your own entity in New Zealand, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own New Zealand company or branch. See the comparison in our New Zealand guide and EOR vs local entity.