Employer of record in New Zealand: costs and rules
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A New Zealand employee on NZD 68,000 costs the employer 3.50% on top of salary, which is the compulsory KiwiSaver contribution of NZD 2,380, plus an ACC work levy set by industry, according to accounting firm Moore Markhams' summary of the April 1, 2026 changes (a secondary source); an EOR's monthly charge ranges from $199 (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster) on October 2026 pricing pages. Two details trip up US employers: the KiwiSaver rate rose from 3% to 3.5% on April 1, 2026, and the employer superannuation contribution tax (ESCT) comes out of that 3.5% rather than on top of it.
An employer of record in New Zealand is a New Zealand company that signs the employment agreement with your hire, pays KiwiSaver and the ACC levy, runs PAYE payroll and meets the employer's duties under the Employment Relations Act, while you direct the work.
- Employer cost on a sample salary
- 3.50% (NZD 2,380) KiwiSaver,…on top of gross pay
- Minimum annual leave
- 4 weeks paid annual holidays…
- Public holidays
- 11 national public holidays…
- Currency
- NZD
On this page
What is unusual about New Zealand employment
New Zealand has no social security tax on payroll. The employer's statutory costs are KiwiSaver for members and the ACC work levy for accident cover. The employee pays the ACC earners' levy of 1.75% on earnings up to NZD 156,641 (both raised on April 1, 2026) and their own KiwiSaver contribution of 3.5% by default, or 4%, 6%, 8% or 10% by choice.
- Trial periods for everyone. Since December 23, 2023, any employer can use a 90-day trial if it is agreed in writing before work starts. A probationary period can be longer, but it must be in the agreement, cannot follow a trial, and a dismissal at its end can still be challenged.
- No statutory notice or redundancy pay. Notice comes from the employment or collective agreement, and if none is stated, a reasonable period applies. Redundancy pay is owed only if the agreement provides it, but the employer must consult affected staff first (ERA s.4(1A)(c)).
- Minimum wage: NZD 23.95 an hour for adults from April 1, 2026 (up from 23.50), and NZD 19.16 for starting-out and training rates.
- Leave: 4 weeks of paid annual holidays after 12 months, plus 11 national public holidays in 2026 (Matariki falls on July 10) and one regional anniversary day.
Employment costs and rules in New Zealand
| Item | New Zealand |
|---|---|
| Employer social contributions | 3.5% KiwiSaver (for members) plus ACC work levy by industry; no social security tax |
| What the employer pays | KiwiSaver compulsory employer contribution 3.5% of gross pay from Apr 1, 2026 (was 3%), for employees who are members; employer superannuation contribution tax (ESCT) is deducted from that contribution at 10.5% to 39% by employee pay band; ACC work levy (employer) by industry classification, not checked; ACC earners' levy is employee-paid |
| Caps and ceilings | ACC earners' levy max liable earnings NZD 156,641 (from Apr 1, 2026; was 152,790). ESCT bands for 2026-27: to 18,720 at 10.5%; 18,721 to 64,200 at 17.5%; 64,201 to 93,720 at 30%; 93,721 to 216,000 at 33%; above at 39%. No KiwiSaver ceiling |
| Employee contributions | ACC earners' levy 1.75% (from 1.67%) up to NZD 156,641, plus KiwiSaver 3.5% default if a member (can choose 4, 6, 8, 10%, or apply for a temporary 3%) |
| Minimum wage | NZD 23.95 per hour adult rate from Apr 1, 2026 (was 23.50); starting-out and training rate NZD 19.16 |
| Annual leave | 4 weeks paid annual holidays after 12 months of continuous employment (Holidays Act 2003) |
| Public holidays | 11 national public holidays in 2026 (New Year's Day, Jan 2, Waitangi Day, Good Friday, Easter Monday, Anzac Day, King's Birthday, Matariki Jul 10, Labor Day, Christmas, Boxing Day) plus 1 regional anniversary day |
| Probation | 90-day trial period available to all employers since Dec 23 2023, if agreed in writing before work starts. A probationary period can be longer than 90 days, must be in the agreement, cannot follow a trial period, and dismissal at its end can be challenged as unjustified |
| Notice period | No statutory minimum notice under the Employment Relations Act; notice is set by the employment or collective agreement, and if none is stated a reasonable period applies |
| Severance | No statutory redundancy or severance pay; payable only if the employment or collective agreement provides it. Employer must consult affected staff before a redundancy decision (ERA s.4(1A)(c)) |
| Sample salary used | NZD 68,000 per year, about USD 40,000 at an assumed 1.70 NZD/USD (rate not fetched) |
| Employer cost on that salary | 3.50% (NZD 2,380) KiwiSaver, plus ACC work levy (not checked); ESCT comes out of the 3.5%, not on top |
Checked October 16, 2026. Source type: secondary (Moore Markhams); employment.govt.nz, ird.govt.nz and beehive.govt.nz returned fetch errors today. Sources are listed at the end of this page.
What an EOR charges to employ someone in New Zealand
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
The annual cost of a NZD 68,000 hire
NZD 68,000 is about USD 40,000 at an assumed 1.70 dollars per US dollar, a rate we did not confirm, so the EOR fee stays in US dollars.
| Line | Per year |
|---|---|
| Gross salary | NZD 68,000.00 |
| KiwiSaver employer contribution, 3.5% | NZD 2,380.00 |
| of which ESCT withheld at 30% and paid to Inland Revenue | NZD 714.00 |
| of which paid into the KiwiSaver account | NZD 1,666.00 |
| ACC work levy (by industry) | Not checked |
| Employer cost before the EOR fee | NZD 70,380.00 |
| EOR fee at $599 a month (USD) | $7,188 |
Source: Moore Markhams summary of April 1, 2026 payroll changes (KiwiSaver 3.5%, ESCT bands for 2026-27); employment.govt.nz for leave and holidays. Fee: $599 a month from the Deel and Remote pricing pages on Oct 16, 2026, kept in USD because we did not confirm an NZD rate. Checked Oct 2026.
Arithmetic: 3.5% x 68,000 = 2,380. On a salary between NZD 64,201 and 93,720, the 2026-27 ESCT rate is 30%, so 0.30 x 2,380 = 714 goes to Inland Revenue and 1,666 reaches the employee's account. The employer's cost is still 2,380. If the employee is not a KiwiSaver member, there is no contribution. The fee is $7,188 a year at $599, $2,388 at $199, $4,788 at $399 and $8,388 at $699. Get the ACC work levy for the hire's industry code from your EOR. Try other salaries with the international cost calculator.
New Zealand entity or EOR
Your own New Zealand company needs an IRD employer registration, payroll that files PAYE and KiwiSaver, and ACC levy accounts. The statutory costs are low, so the EOR fee of $7,188 per person per year is the main thing you are weighing against that setup. Use the EOR versus entity comparison to find your break-even.
Contractors in New Zealand
A contractor in New Zealand takes KiwiSaver and the ACC work levy off your bill. The label in the contract does not settle it, though: a full-time role directed by your managers can be found to be employment, and then the holidays, KiwiSaver and the consultation duties come back. Pay true contractors through a contractor management platform, or hand the risk to a contractor of record.
Selecting an EOR for New Zealand
Two checks matter in any New Zealand quote: KiwiSaver at 3.5%, not the old 3%, and a written 90-day trial in the agreement if you want one. On terms, Oyster lists no minimum term and 30 days' notice, while Remote's default agreement renews itself after 12 months. By our scores Multiplier is first at 79/100 and Oyster second at 64/100 (our scoring).
Find all providers in the EOR comparison, the Oyster, Remote and Deel reviews, and New Zealand next to Australia in the cost index by country.
Frequently asked questions
What does an employer of record in New Zealand cost per hire?
What is the KiwiSaver employer rate in 2026?
Can any New Zealand employer use a 90-day trial?
Is redundancy pay required in New Zealand?
What is the New Zealand minimum wage in 2026?
Sources (14)
- Employment New Zealand: Annual holidays (checked Oct 16, 2026)
- Employment New Zealand: Public holidays and anniversary dates (checked Oct 16, 2026)
- Employment New Zealand: 90-day trial periods extended to include all employers (checked Oct 16, 2026)
- Employment New Zealand: Trial and probationary periods (checked Oct 16, 2026)
- business.govt.nz: Law change round-up (checked Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- Moore Markhams: 1 April 2026 payroll changes (secondary) (checked Oct 16, 2026)
- ILO EPLex: New Zealand employment protection profile 2026 (secondary) (checked Oct 17, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.