Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
NZD $ (New Zealand Dollar)
Employer contributions
3% KiwiSaver employer + ACC levy ~0.7% average
Minimum wage
NZD 23.15/hour (2026)
Payment frequency
Monthly / Fortnightly
April 1 - March 31 (fiscal year)
Capital
Wellington
Timezone
NZST (GMT+12)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~NZD 7,210 total
/month
For a gross salary of
NZD 7,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
3% KiwiSaver employer + ACC levy ~0.7% average
Mandatory extras
Annual Bonus
Monthly admin
Each pay run: file via payday filing - KiwiSaver contributions - ACC levy - annual IR3
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~NZD 7,210 total
Example gross salary
NZD 7,000 gross/month
~NZD 4,830 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~NZD 210 KiwiSaver + ACC
Employer contributions on that salary
Employer contributions
3% KiwiSaver employer + ACC levy ~0.7% average
Employee contributions
3% KiwiSaver employee (default) + income tax
Total cost above gross
~3% above gross (KiwiSaver min)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~NZD 6,000
Per month
Auckland
NZD 7,000 - 14,000
~25%
Wellington
NZD 6,500 - 12,000
~15%
Monthly gross. National average salary per year:
~NZD 72,000
Minimum wage
NZD 23.15/hour (2026)
Paid:
Hourly
Extra pay
Annual Bonus
Discretionary
December/January
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
10.5% up to NZD 14,000 / 17.5% / 30% / 33% / 39%
Tax year:
April 1 - March 31 (fiscal year)
Filing calendar
Payday filing - each pay run
Social security payments
July 7 (IR3 individual return)
Income tax
Auto via myIR
Employee tax certificate
Earnings Certificate
July 7
Annual return
IR3 Tax Return
Late payment penalties
Late payday filing: NZD 250 per late return; late PAYE: 1-4% incremental penalty + UOMI
Who collects what
Inland Revenue (IR)
Income tax and PAYE
ACC (Accident Compensation Corporation)
Work injury compensation levy
Employment New Zealand (MBIE)
Employment law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
4 weeks
Public holidays
~12 public holidays
Sick leave
Sick Leave
10 days per year from employer
Maternity leave
26 weeks (paid parental leave government funded)
Government pays up to NZD 712.17/week
The contracts you can use, and what ending an employment relationship costs.
Permanent
Individual Employment Agreement (permanent)
Fixed term
Fixed-Term Agreement
Independent contractor
Contractor / Self-Employed
Collective agreements
Collective Agreement
Ending employment
Redundancy / Severance
How it is calculated
Negotiated; no statutory minimum beyond notice
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Contractor vs Employee Misclassification (s6 Employment Relations Act)
Risk Level: HIGH
New Zealand courts use a multi-factor real nature of relationship test. Workers labeled as contractors who are economically dependent on one principal, work under direction, and use client equipment are routinely reclassified as employees. Remedies include back-pay, holiday pay, KiwiSaver contributions and penalties.
Holiday Pay Calculation Errors
Risk Level: HIGH
NZ holiday pay must be the greater of ordinary weekly pay or average weekly earnings over 52 weeks. Including or excluding irregular payments (bonuses, overtime) incorrectly is the most common Holidays Act compliance failure. MBIE audits cover up to 6 years of back holiday pay.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.