New Zealand Employer Rates and Thresholds 2026

New Zealand employers' main statutory payroll costs are the KiwiSaver employer contribution, for employees in KiwiSaver or a complying fund, and ACC levies that fund the accident compensation scheme.

The ACC Work levy depends on the employer's classification unit and is charged on liable earnings up to NZ$156,641 per employee in 2026/27. The Working Safer levy is a flat 0.08%.

KiwiSaver and ACC levies for a full year at 2026/27 rates, for an employee in KiwiSaver at an employer classified as office labour supply:

Work levy rates per NZ$100 of liable earnings for selected office-based classification units:

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

• 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.
• 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.
• 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.
• 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.
• 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.
• 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.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 April 2028: New Zealand KiwiSaver employer contribution rises to 4%. The default KiwiSaver contribution rate for employees and the matching compulsory employer contribution rise from 3.5% to 4% from the first pay date on or after 1 April 2028.
• From 21 February 2027: New Zealand high-earner dismissal rule extends to existing employees. The NZ$200,000 remuneration threshold for unjustified dismissal claims, in force for new agreements since 21 February 2026, applies to employees who were already in their role on that date from 12 months after it, unless the employer and employee agree in writing to keep the protections.
• From 1 April 2026: New Zealand KiwiSaver employer contribution rises to 3.5%. From the first pay date on or after 1 April 2026, the compulsory employer contribution rises from 3% to 3.5% of gross pay. Employees can apply for a temporary reduction to 3%, which the employer can then match.
• From 1 April 2026: New Zealand minimum wage rises to NZ$23.95 an hour. The Minimum Wage Order 2026 raises the adult minimum wage from NZ$23.50 to NZ$23.95 an hour, and the starting-out and training rates to NZ$19.16, from 1 April 2026.
• From 21 February 2026: New Zealand Employment Relations Act reforms take effect. The Employment Relations Amendment Act 2026 bars unjustified dismissal claims by employees on new agreements earning NZ$200,000 or more (unless agreed otherwise), removes remedies where an employee's serious misconduct contributed to a grievance, limits remedies against controlling third parties in those cases, and adds a gateway test for contractors.