New Zealand at a glance
Taxes in New Zealand
Employer Contributions
Total employer tax: 3%+
| Contribution Type | Rate |
|---|---|
| KiwiSaver (employer minimum contribution) | 3% |
| Accident Compensation Corporation (ACC) levy | Varies by industry (~0.72%–1% of monthly payroll) |
| Fringe Benefit Tax (if applicable) | 11.73%–63.93% (on value of fringe benefits provided) |
Total employer tax: 3%+
| Contribution Type | Rate |
|---|---|
| KiwiSaver (employer minimum contribution) | 3% |
| Accident Compensation Corporation (ACC) levy | Varies by industry (~0.72%–1% of monthly payroll) |
| Fringe Benefit Tax (if applicable) | 11.73%–63.93% (on value of fringe benefits provided) |
| Contribution Type | Rate |
|---|---|
| KiwiSaver (employee minimum) | 3% (if enrolled) |
| ACC employee levy | 1.46% |
| Income tax (PAYE) | Progressive (see below) |
| Taxable Income (NZD) | Rate |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
Employer of Record in New Zealand
How Remote& EOR Works
Remote& acts as the legal employer of your New Zealand workers — managing KiwiSaver, ACC levies, PAYE, and employment contracts in accordance with the Employment Relations Act and Holidays Act, while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files PAYE/KiwiSaver/ACC, administers statutory benefits, ensures Employment Relations Act compliance |
| Employee | Works for your company under a locally compliant New Zealand contract |
Ask Remi:
"Hire a machine learning engineer in Auckland — NZD 130,000/year, starting next month" Remi handles everything: employment agreement, IRD registration, KiwiSaver enrollment, ACC levy, and payroll.
Benefits in New Zealand
- KiwiSaver: Voluntary savings scheme available to employees between 18 and 65. Employers must contribute a minimum 3% for all enrolled employees. Employees are auto-enrolled and may opt out
- Accident Compensation Corporation (ACC): Mandatory injury insurance covering all workplace and non-work injuries. Employer contributes ~0.72%–1% of monthly payroll; employee contributes 1.46% via PAYE
- Flexible and remote working arrangements
- Employee Assistance Programme (EAP)
- Additional paid leave
- Career development budget
- Wellness programs
- Private health insurance
- Charity leave
- Home office equipment
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 4 weeks (20 days) + 11 public holidays |
| Sick Leave | 10 days per year (from year 1 of employment) |
| Primary Carer Leave | 26 weeks paid + 4–26 weeks unpaid (service-dependent) |
| Partner's Leave | 1–2 weeks unpaid (determined by employment length) |
| Bereavement Leave | 3 days paid for immediate family |
Employment conditions
Probation
Probation periods of 3–6 months are standard in New Zealand. There is no statutory maximum, but probation terms must be recorded in the employment agreement.
Allowable Deductions
Employers may only deduct from salaries amounts required by law — PAYE, ACC, KiwiSaver, child support, and student loan repayments. No unauthorized deductions are permitted.
Employee Rights & Protections
New Zealand workers are entitled to: written employment agreement, payslip, flexible working rights, health and safety protections, anti-discrimination protection, pay and employment equity protections, personal data protection, and union membership rights.
Payments
End of employment in New Zealand
Employers must act in good faith, have a genuine reason for dismissal, and follow a fair process. Before terminating (except in cases of gross misconduct or genuine redundancy), employers must provide the employee an opportunity to respond.
Employees are protected from dismissal for whistleblowing, pregnancy, union membership, or taking parental leave. Unfairly dismissed employees may raise a personal grievance claim.
Redundancy pay is not statutory — entitlement only arises if specified in the employment agreement. Redundancy must be preceded by a genuine workplace change process.
Frequently asked questions
Four routes: run payroll from HQ (generally non-compliant long-term); engage genuine independent contractors; establish a New Zealand entity for direct employment; or use Remote& as Employer of Record — handling IRD registration, KiwiSaver, ACC, and Employment Relations Act compliance.