--- title: "Hiring in New Zealand 2026 | Employer of Record" description: "Hire in New Zealand through Teamed's EOR. KiwiSaver employer minimum rises to 3.5% on 1 April 2026, 4 weeks annual holidays. One guide per layer." canonical: https://www.teamed.global/country-hiring-guides/new-zealand --- New Zealand · Country overview Served by Teamed vetted partner-entity network in New Zealand # What do you need to know to hire in *New Zealand*? From 1 April 2026 the minimum KiwiSaver employer contribution climbs to 3.5%, the first rise in twenty years. New Zealand also sets no statutory notice period and no redundancy pay, so the employment agreement carries the weight. A new 2026 law removes unjustified-dismissal protection from anyone earning NZ$ 200,000/year or more. Each guide below takes one layer. Last reviewed 13 June 2026 · New Zealand guide ## How does Teamed handle New Zealand hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in New Zealand for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, contracts, and the full New Zealand employment law stack run on **one platform**. **Real HR and legal experts** manage every New Zealand hire, from the first offer letter to the final settlement. **An actual person**, not a chatbot or a pooled queue, handles your team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. A New Zealand contractor who converts to employment keeps their record, and that same employee can **graduate** to your own New Zealand entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first New Zealand hire, **until it isn't**. Three things you won't find on any other New Zealand EOR guide - **The minimum KiwiSaver employer contribution rises to 3.5% on 1 April 2026.** It had sat at 3% since 2006. A further rise to 4 percent is set for 2028. Most EOR guides still quote the old 3% floor. [The tax and payroll guide](/country-hiring-guides/new-zealand/tax-and-payroll) carries the current rate. - **New Zealand has no statutory redundancy pay.** Severance is owed only if the employment agreement promises it. There is no formula, no minimum, and no qualifying-service rule in the law. US and UK buyers who assume a statutory payout get this wrong on the first restructure. - **From 21 February 2026, employees earning NZ$ 200,000/year or more lose unjustified-dismissal protection.** They cannot raise a personal grievance for dismissal, except in limited cases. A 12-month transition applies. No other country guide in this market reflects the change yet. Answer.cite this Hiring in New Zealand carries no general social security charge. The main employer add-on is KiwiSaver, the retirement scheme. From 1 April 2026 the minimum employer contribution rises to 3.5% of gross pay, up from 3%. The statutory floor is 4 weeks of paid annual holidays and 10 days of paid sick leave each year. The adult minimum wage is NZ$ 23.50/hour. Primary carer parental leave runs up to 26 weeks, paid by the government. New Zealand sets no minimum notice period and no statutory redundancy pay. Both are set by the employment agreement. Pay frequency is also a matter of agreement, with no 13th-month salary. Teamed runs New Zealand payroll, contracts, and compliance through its vetted partner-entity network. This page is the map. Each guide below is the detail. At a glance · New Zealand NZD · English · Fortnightly or monthly payroll Currency NZD (New Zealand dollar) KiwiSaver (employer) 3.5% minimum from 1 April 2026, up from 3 percent Minimum wage NZ$ 23.50/hour adult rate, from 1 April 2025 Annual holidays 4 weeks after 12 months continuous work Public holidays 11 plus regional anniversary days Sick leave 10 days after 6 months, carry-over to 20 days Primary carer leave 26 weeks government-funded Top income tax 39% above $180,000 a year ![A warm wide illustration of Wellington harbour at golden hour: the green hills rising behind the waterfront, the cable car line, and small sailing boats on calm water under a soft amber sky.](/images/country-guides/new-zealand-hiring.webp) New Zealand · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in New Zealand in 2026? Salary plus KiwiSaver is the core cost. New Zealand has no general payroll tax on employers. From 1 April 2026 the minimum employer KiwiSaver contribution is 3.5% of gross pay, up from 3%. New Zealand does not levy a broad employer social security charge. The main on-cost is KiwiSaver, the workplace retirement scheme. The minimum employer contribution rises to 3.5% of gross earnings on 1 April 2026, up from 3%. The employer also covers ACC levies for workplace injury cover, which vary by industry. Teamed's New Zealand fee sits inside the total cost envelope, not outside it. Teamed's New Zealand price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current rates, is in the cost guide. [Read the full New Zealand cost breakdown](/country-hiring-guides/new-zealand/cost-breakdown) ## Do you need a New Zealand entity to hire employees in New Zealand? No. An Employer of Record runs New Zealand payroll and contracts from day one. Your own New Zealand entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary. Registering a New Zealand company means incorporation with the Companies Office, an IRD number for PAYE, KiwiSaver enrolment for staff, and ACC registration for injury cover. Setup and the ongoing monthly filings take real local administration. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs New Zealand payroll, contracts, and compliance from day one. The crossover point depends on New Zealand salary levels and your local accounting costs. For most professional-services roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers. Most providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own New Zealand entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full New Zealand EOR vs entity guide](/country-hiring-guides/new-zealand/eor-vs-entity) ## What changed in New Zealand employment law recently? Two 2026 changes matter most. KiwiSaver employer minimums rise, and high earners lose dismissal protection. The minimum KiwiSaver employer rate moves to 3.5% on 1 April 2026. The [KiwiSaver Act 2006, as amended by Budget 2025](https://www.ird.govt.nz/kiwisaver-changes), lifts the minimum employer and employee contribution to 3.5% from 1 April 2026, with a further rise to 4 percent set for 2028. The rate had been 3% since the scheme began. From 21 February 2026, the Employment Relations Amendment Act 2026 removes unjustified-dismissal protection from employees earning NZ$ 200,000/year or more. Those employees cannot raise a personal grievance for dismissal, except in limited cases. A 12-month transition period applies to existing agreements. Income tax bands run from 10.5% on the first slice of income up to 39% on income above $180,000 a year. The compliance and hiring guides cover each current rule in detail. [Read the full New Zealand hiring guide](/country-hiring-guides/new-zealand/hiring-guide) ## What benefits must you provide New Zealand employees in 2026? The statutory floor is 4 weeks of paid annual holidays and 10 days of paid sick leave each year. Primary carer parental leave runs up to 26 weeks, paid by the government. Paid annual holidays are 4 weeks after 12 months continuous employment under the [Holidays Act 2003](https://www.employment.govt.nz/leave-and-holidays/annual-holidays). New Zealand counts holidays and the 11 national public holidays separately, and Mondayisation moves a holiday that falls on a weekend. Paid sick leave is 10 days a year after 6 months of work. Unused sick leave carries over up to 20 days in total. Primary carer parental leave runs up to 26 weeks, funded by Inland Revenue, and a partner may take up to 2 weeks of unpaid leave. KiwiSaver gives an employer contribution rising to 3.5% from 1 April 2026. The benefits guide covers each entitlement in full. Read the full New Zealand benefits guide ## What are payroll taxes in New Zealand in 2026? PAYE income tax runs on a progressive scale from 10.5% to 39%. The main employer on-cost is KiwiSaver, rising to 3.5% from 1 April 2026. PAYE is deducted at source and is progressive. The first band is 10.5% on income up to $15,600 a year, then 17.5%, then 30%, then 33%, and 39% on income above $180,000 a year, under the [Income Tax Act 2007 rates administered by Inland Revenue](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/tax-codes-and-tax-rates-for-individuals/tax-rates-for-individuals). New Zealand has no general employer payroll tax. The employer covers KiwiSaver, rising to 3.5% of gross pay from 1 April 2026, and ACC levies for injury cover that vary by industry. Pay frequency is set by the employment agreement, weekly, fortnightly, or monthly, with no statutory rule. Teamed PAYE handles all deductions and Inland Revenue filing. The tax and payroll guide sets out every band and threshold. [Read the full New Zealand tax and payroll guide](/country-hiring-guides/new-zealand/tax-and-payroll) ## How do you terminate an employee in New Zealand? There is no statutory minimum notice period. The employment agreement sets it. There is no statutory redundancy pay. Severance is owed only if the agreement promises it. New Zealand sets no minimum notice in law. If the [employment agreement](https://www.employment.govt.nz/ending-employment/giving-notice) is silent, the employer must give fair and reasonable notice, and 2 to 4 weeks is often treated as fair. There is no statutory redundancy pay either. A payout on restructure is owed only when the agreement provides for it. A first-time employee may be put on a trial period of up to 90 days. Any dismissal must still be justified and follow a fair process. An employee who feels unjustifiably dismissed must raise a personal grievance within 90 days. From 21 February 2026, employees earning NZ$ 200,000/year or more lose that protection, with a 12-month transition. The termination guide runs the full process. [Read the full New Zealand termination and severance guide](/country-hiring-guides/new-zealand/termination-and-severance) ## What should you know before hiring in New Zealand? Two things catch US buyers out. The first is that there is no statutory redundancy pay at all. The second is that any dismissal must be justified and follow a fair process, even on a trial period. **Redundancy pay is not a legal right.** New Zealand law sets no severance formula and no minimum. A restructure payout is owed only where the employment agreement promises one. Write the redundancy term into the agreement before the first hire, or there may be nothing to pay and nothing to rely on. **Dismissal protection is strong and process-driven.** An employee can raise a personal grievance for unjustified dismissal within 90 days, and even a 90 days trial period requires a fair process. From 21 February 2026, employees earning NZ$ 200,000/year or more sit outside that protection. The hiring guide and the termination guide both cover safe process in detail. [Read the full New Zealand hiring guide](/country-hiring-guides/new-zealand/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in New Zealand? Salary plus KiwiSaver is the core cost, and New Zealand has no general employer payroll tax. The minimum employer KiwiSaver contribution rises to 3.5% of gross pay on 1 April 2026, up from 3%. ACC injury levies also apply and vary by industry. Teamed's New Zealand fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in New Zealand without an entity? Yes. An Employer of Record like Teamed runs New Zealand payroll, contracts, and compliance through its partner-entity network. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Registering your own New Zealand company takes longer and brings ongoing monthly filings with the Companies Office and Inland Revenue. What is the statutory notice period in New Zealand? There is no statutory minimum notice period in New Zealand. Notice is set by the employment agreement. If the agreement is silent, the employer must give fair and reasonable notice, and 2 to 4 weeks is often treated as fair. Always set the notice term in writing at hire. Is redundancy pay required by law in New Zealand? No. New Zealand law sets no statutory redundancy or severance pay. A payout on restructure is owed only where the employment agreement provides for it. There is no formula and no minimum in the law, so the redundancy term should be written into the agreement before the first hire. What parental leave applies in New Zealand? Primary carer parental leave runs up to 26 weeks, paid by Inland Revenue rather than the employer. A partner may take up to 2 weeks of unpaid leave. Eligibility depends on length of service and hours worked. The benefits guide sets out the qualifying tests. What changed for high earners in 2026? From 21 February 2026, employees earning NZ$ 200,000/year or more lose unjustified-dismissal protection under the Employment Relations Amendment Act 2026. They cannot raise a personal grievance for dismissal, except in limited cases. A 12-month transition applies to existing agreements. Everyone else keeps the 90 days window to raise a grievance. Teamed Legal Operations New Zealand reads as a light-touch market until the first restructure or the first exit. There is no statutory notice and no statutory redundancy pay, so everything turns on what the employment agreement says, and a dismissal still has to be justified and fairly run. Get the agreement right at hire, and the rest of New Zealand employment law is calm. Skip it, and a personal grievance lands within 90 days. A note from Tom Price-Daniel New Zealand gives you no statutory notice and no redundancy pay, so the employment agreement is the whole game. Add a brand-new 2026 rule that strips dismissal protection from anyone on $200,000 or more, and the detail matters before the first hire. Read the right New Zealand guide before that hire, not after the first grievance. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [New Zealand hiring guide, offer to payslip](/country-hiring-guides/new-zealand/hiring-guide)guide - [New Zealand employer cost breakdown 2026](/country-hiring-guides/new-zealand/cost-breakdown)guide - [EOR vs entity in New Zealand](/country-hiring-guides/new-zealand/eor-vs-entity)guide - [New Zealand termination and severance](/country-hiring-guides/new-zealand/termination-and-severance)guide - [New Zealand tax and payroll](/country-hiring-guides/new-zealand/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/new-zealand)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. New Zealand's KiwiSaver employer minimum rises to 3.5 percent on 1 April 2026 and the high-income dismissal change took effect on 21 February 2026, so verify current requirements with Employment New Zealand (MBIE) and Inland Revenue, or speak to a qualified professional, before relying on any specific framework.