Employee agreements

All employees must receive a written agreement that complies with the Employment Relations Act 2000. These agreements should clearly outline job terms, responsibilities, and entitlements.

Probationary periods

Probation periods of up to 90 days are common and legal, provided they’re agreed to in writing and included in the employment contract.

Average working hours

A typical full-time workweek is 40 hours. That said, flexible and remote working arrangements have become increasingly popular, especially in tech and knowledge sectors.

How an employer of record helps you hire in New Zealand

Velocity Global’s New Zealand EOR solution takes the complexity out of hiring by managing employment contracts, compliance, onboarding, and local HR nuances. Businesses can scale faster without the distraction of entity setup or legal uncertainty.

Payroll cycles

Most employers pay talent either biweekly or monthly. Under the payday filing rules, employers are required to report income and tax details to Inland Revenue with each payment.

Wages

As of April 2025, the minimum wage in New Zealand is NZD23.15 per hour. Salaries vary widely based on role and region, with cities like Auckland offering higher compensation benchmarks.

Bonus payments

Bonuses aren’t legally required but are commonly offered in sales, executive, and performance-driven roles.

How an EOR helps employers run payroll

Velocity Global’s EOR solution streamlines payroll administration in New Zealand. From accurate and timely payments to tax reporting and payslip generation, our Global Work Platform™ simplifies the entire process.

Tax due dates

Employers are required to submit annual tax filings and make provisional tax payments throughout the year. With payday filing, reporting occurs with each payroll cycle.

Tax thresholds

Income taxes follow a progressive model ranging from 10.5% to 39% in 2025. Employers are also required to contribute to KiwiSaver, New Zealand’s voluntary retirement savings scheme.

Health insurance

While New Zealand has a strong public healthcare system, many employers provide private health insurance as a supplemental benefit to remain competitive.

Pensions

KiwiSaver serves as the country’s core retirement scheme, requiring employers to contribute at least 3% of an employee’s gross pay.

How an EOR helps you manage taxes

Velocity Global takes the guesswork out of tax compliance. Our team ensures timely filings, accurate calculations, and adherence to KiwiSaver contributions—all handled through our centralized platform.

Annual leave

Employees are entitled to at least four weeks of paid annual leave after 12 months of continuous employment.

Parental leave

New parents may take up to 26 weeks of government-funded parental leave, with some employers offering additional paid time off.

Sick leave

After six months of continuous employment, employees are entitled to 10 days of paid sick leave each year.

Public holidays

New Zealand observes 11 national public holidays. If a holiday falls on a weekend, it’s often "Mondayised" and observed the following Monday.

How an EOR helps you manage leave

With Velocity Global’s support, leave entitlements and public holidays are accurately tracked and administered. Our EOR solution ensures full compliance and provides a consistent experience for supported employees.

Statutory benefits

Employers must provide basic entitlements, including annual leave, paid public holidays, KiwiSaver contributions, and parental leave.

Supplemental benefits

To stand out in a competitive market, companies often offer:

• Private medical insurance
• Wellness allowances or gym memberships
• Remote work or flexible schedules
• Professional development stipends

How an EOR helps you offer benefits

Velocity Global helps customers go beyond the basics. Our New Zealand EOR solution enables companies to offer competitive benefits without the operational burden of managing them locally.

Notice periods

Notice requirements are typically two to four weeks and must be included in the employment agreement.

Severance pay

Severance isn’t required by law unless it’s outlined in the employment contract or part of a redundancy process. In redundancy cases, compensation is often negotiated.

How an EOR helps with terminations

Velocity Global helps ensure that all termination processes comply with the Employment Relations Act. From notice period guidance to final pay, our team supports both employers and talent through every step.