How to Hire Employees in New Zealand
Hiring employees in New Zealand? Learn the legal requirements, employment contracts, payroll costs, and compliance rules you need to know before your first hire.
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- The guide covers New Zealand's three hiring models local entity, Employer of Record, and contractor engagement including compliance obligations, setup timelines, and permanent establishment risk for each.
- Employer cost breakdowns detail KiwiSaver contributions at 3.5% from April 2026, ESCT, and ACC levies across representative roles from customer support to senior finance.
- Key labor law sections address the Employment Relations Amendment Act 2026 changes, including the statutory contractor gateway test, removal of the 30-day collective agreement rule, and AEWV trial period restrictions.
- Onboarding, termination, visa sponsorship, sector hiring demand, and city-level talent concentration are covered with specific compliance deadlines and statutory entitlements throughout.
Hiring employees in New Zealand requires a written employment agreement and PAYE registration, both of which must be completed before the employee's first day of work.
The Employment Relations Act 2000, as amended in 2026, governs the employment relationship by imposing good-faith obligations on all parties, mandating written agreements, and creating personal grievance exposure from the moment employment begins.
Job Market and Hiring Trends in New Zealand
New Zealand's job market expanded for eight consecutive months through January 2026, with construction leading sector growth at 13% year-on-year, according to Seek NZ data.
Skill shortages persist across healthcare, engineering, IT, and skilled trades, with no near-term resolution in sight.
Construction: Job ad volume grew 13% year-on-year through January 2026 (Seek NZ, January 2026).
Healthcare and social assistance: Among the top shortage occupations listed on the Immigration New Zealand Green List 2026.
IT roles: Software engineers and cybersecurity specialists remain in sustained demand across both public and private sectors.
Engineering and skilled trades: Prioritised under Green List Tier 1, which provides faster visa processing for qualifying candidates.
Education: Teacher shortages have driven multiple education roles onto the Green List, reflecting a structural supply gap.
New Zealand's export-dependent economy adds a cyclical dimension to labour demand. Agriculture, dairy, and tourism sectors experience seasonal hiring peaks that create short-term pressure on an already tight labour market.
Your Options for Hiring in New Zealand: Entity vs. EOR vs. Contractor
Foreign companies hiring in New Zealand choose between three models: a local entity, an Employer of Record (EOR), or contractor engagement. Each carries distinct compliance obligations, cost structures, and timelines.
Entity setup gives you direct control. You register a New Zealand company, become the legal employer, and carry full compliance responsibility. Formation takes weeks to months and requires ongoing legal and accounting support.
Contractor engagement is only appropriate where the 2026 gateway test is genuinely met in practice, not just on paper. If any of the four statutory criteria fail, the traditional relationship test applies and reclassification risk follows.
EOR hiring makes a third-party provider the legal employer while you direct day-to-day work. The EOR manages employment agreements, PAYE, KiwiSaver, and ACC levies. Onboarding in New Zealand can complete in 1 to 2 working days once employee details are confirmed. For a full explanation of how this model operates, see how does EOR work. If you are evaluating providers, the best employer of record guide covers what to look for.
Path | Setup Time | Cost | Compliance Burden | Best For |
|---|---|---|---|---|
Local Entity | Weeks to months | Registration, legal, and ongoing admin fees | 100% on employer | Long-term, large-scale operations |
Employer of Record | 1 to 2 working days | Per-employee monthly fee, no setup cost | Shifted to EOR provider | Fast, compliant expansion without entity overhead |
Independent Contractor | Immediate | No setup cost | Classification risk on engaging party | Genuine project-based work where gateway test is met |
Permanent establishment (PE) risk for entity path: Under New Zealand tax law, a foreign company can trigger a PE through a place of management, office, branch, factory, or a construction or assembly site operating for more than six months. Inland Revenue applies a substance-over-form approach and will look at where decisions are made and where activity is physically conducted. To reduce PE exposure, document that management decisions occur outside New Zealand, limit the authority of any in-country representative to bind the foreign entity, and take local tax advice before committing to entity formation.
Employees vs. Contractors in New Zealand
New Zealand courts look past contract labels to the actual working arrangement. A written agreement that calls someone a contractor does not make them one if the day-to-day reality says otherwise.
The Employment Relations Amendment Act 2026 introduced a statutory gateway test for a new category called "specified contractor." A written agreement must confirm all four criteria: the worker is not an employee or is engaging as an independent contractor; the worker has freedom to work for others except while performing the contracted work; the worker can subcontract or is not required to work at a specific time or for a minimum period; and the worker can decline additional work without the arrangement being terminated. If any criterion is not met, the traditional "real nature of the relationship" test applies and the Employment Relations Authority will assess control, integration, and economic dependence.
Factor | Employee | Specified Contractor |
|---|---|---|
Control | Employer directs how, when, and where work is done | Worker controls method and timing of work |
Benefits and social security | KiwiSaver, ACC, statutory leave entitlements | Not entitled to employee benefits |
Taxation | PAYE deducted by employer | Worker manages own tax obligations |
Contractual agreement | Written employment agreement required by law | Written contractor agreement confirming all four gateway criteria |
Exclusivity | Employer may restrict outside work by agreement | Worker must have freedom to work for others |
At-will employment does not exist in New Zealand. Employers must have a valid reason for any dismissal and follow a fair process. Failing either requirement exposes the employer to a personal grievance claim for unjustified dismissal, regardless of what the employment agreement says.
One additional restriction applies to visa holders. Employees on an Accredited Employer Work Visa (AEWV) cannot be subject to a 90-day trial period clause. Trial periods for qualifying employers (fewer than 20 employees) are not available for this visa category.
Cost to Hire an Employee in New Zealand
Total employment cost in New Zealand includes gross salary plus KiwiSaver employer contributions, ESCT on those contributions, and ACC levies.
Employers must contribute a minimum of 3.5% of gross salary to KiwiSaver (from 1 April 2026), pay Employer Superannuation Contribution Tax (ESCT) on that contribution, and cover the ACC Work Account levy, which varies by industry, plus the employer earner component of approximately 0.08%.
Contribution | Employer Rate | Employee Rate | Notes |
|---|---|---|---|
KiwiSaver | 3.5% of gross salary | 3% minimum (employee choice) | Mandatory for eligible employees |
ESCT | Variable (based on employee's income band) | N/A | Tax on employer KiwiSaver contribution |
ACC Work Account levy | Industry-variable | N/A | Covers workplace injury costs |
ACC Earners' Levy | ~0.08% (employer earner component) | Separate employee rate applies | Covers non-work injuries |
The table below shows estimated total employer costs across representative roles. These figures use the 3.5% KiwiSaver rate and an indicative ACC Work Account levy of 0.63% (general office rate). Actual ACC levies vary by industry classification.
Role | Gross Annual Salary (NZD) | KiwiSaver (3.5%) | ESCT on KiwiSaver (approx.) | ACC Work Account Levy (0.63%) | Total Employer Cost (NZD) |
|---|---|---|---|---|---|
Customer Support Specialist | $32,307 (NZD 55,000) | 1,925 | 578 | 347 | $33,981 (NZD 57,850) |
Marketing Manager | $52,867 (NZD 90,000) | 3,150 | 1,008 | 567 | $55,642 (NZD 94,725) |
Software Engineer | $64,615 (NZD 110,000) | 3,850 | 1,232 | 693 | $68,007 (NZD 115,775) |
Senior Finance Analyst | $76,363 (NZD 130,000) | 4,550 | 1,456 | 819 | $80,372 (NZD 136,825) |
New Zealand does not mandate a 13th month payment. Year-end bonuses are entirely discretionary and carry no statutory obligation. For a full breakdown of how EOR fees interact with these employer costs, see employer of record cost.
Compliance Risks While Hiring in New Zealand
Compliance failures in New Zealand compound quickly. IRD, the Employment Relations Authority, and ACC each operate independent penalty regimes, so a single payroll error can trigger multiple simultaneous investigations.
AEWV and trial period risk: Including a 90-day trial period clause in an employment agreement for an Accredited Employer Work Visa (AEWV) holder risks accreditation revocation by Immigration New Zealand (INZ). AEWV holders are excluded from trial period provisions, and using one signals non-compliance to INZ auditors.
Employer visa stand-down list: Breaching employment standards can place an employer on the INZ stand-down list. Once listed, the employer cannot sponsor future AEWV applications, effectively blocking international hiring until the stand-down period expires.
Permanent establishment risk: Foreign companies with employees based in New Zealand may inadvertently trigger a permanent establishment, creating corporate income tax obligations with Inland Revenue that were not anticipated at the time of hiring.
30-day rule removal: The Employment Relations Amendment Act 2026 removed the rule requiring new employees in roles covered by a collective agreement to be employed on collective terms for the first 30 days. Employers operating in unionised workplaces must update their agreement templates to reflect this change. Using outdated templates creates exposure in any subsequent ERA dispute.
Each of these risks is avoidable with correct agreement drafting, visa-aware onboarding processes, and a payroll structure that accounts for New Zealand's multi-agency compliance environment.
Key Labor Laws in New Zealand
Employment contracts
The Employment Relations Act 2000 requires a written employment agreement signed before an employee's first day. Good faith obligations apply from the initial hiring process through to termination. The Employment Relations Amendment Act 2026 reshaped contractor classification and modified personal grievance rights for high earners.
When employees join a union or request collective bargaining, the ERA 2000 imposes good faith bargaining obligations on employers. Collective employment agreements interact with individual agreements and set minimum terms for covered roles.
Working hours and overtime
The standard working week is 40 hours. There is no statutory maximum for daily hours. Overtime rates must be agreed in the employment contract; 1.5x is common in practice but not legally mandated.
Rest break entitlements under the Employment Relations Amendment Act 2018 require a 10-minute paid rest break for every four hours worked and a 30-minute unpaid meal break for every four hours worked. Employees are also entitled to a minimum of 24 consecutive hours of rest each week.
Minimum wage
From 1 April 2026, the adult minimum wage is $14 (NZD $23.95) per hour. The starting-out wage is $11 (NZD $19.16) per hour, set at 80% of the adult rate, and applies to eligible workers aged 16 to 19. A training wage of $11 (NZD $19.16) per hour applies to apprentices aged 20 and over who complete 60 or more credits per year.
Leave entitlements
Statutory leave in New Zealand covers annual leave, sick leave, public holidays, parental leave, bereavement leave, and domestic violence leave. Full entitlements and employer obligations are set out in the Employment Benefits section of this guide.
Disability accommodation
The Human Rights Act 1993 requires employers to provide reasonable accommodation for disabled applicants and employees. This obligation applies throughout recruitment and employment, not only at the point of hire.
What to Include in an Employment Contract or Offer Letter in New Zealand
A written employment agreement is legally required under the Employment Relations Act 2000 and must be signed before work begins. Verbal agreements are non-compliant and leave employers exposed in any dispute.
From 1 May 2026, employers must also notify candidates when collecting personal information indirectly, such as through reference checks or background screening, as required under Information Privacy Principle 3A.
The Employment Relations Amendment Act 2026 removed the 30-day rule. New employees in roles covered by a collective agreement are no longer required to be employed on collective terms for the first 30 days.
Every employment agreement should include:
Full legal names of the employer and employee
Description and location of the work
Agreed hours or arrangements relating to hours
Wage or salary rate, at or above the applicable minimum wage
Payment frequency
Overtime arrangements
Annual leave entitlement (minimum four weeks after 12 months)
Sick leave entitlement (minimum 10 days after six months)
Notice period for termination
Trial period clause, if applicable (sub-20-employee firms only, up to 90 days; not available for AEWV holders)
Plain language explanation of dispute resolution services
Confidentiality and IP clause
Governing law: New Zealand
Payroll and Taxes in New Zealand
Payroll in New Zealand runs in NZD. Employers must file payday reporting with Inland Revenue (IRD) on or before every payday, without exception.
Foreign employers without a New Zealand entity use an Employer of Record to handle PAYE registration, payday filing, and KiwiSaver contributions on their behalf. This removes the need to establish a local entity before hiring.
PAYE is withheld at source each pay cycle. Progressive rates apply across five income bands. Before the first pay run, employers must collect a completed IR330 Tax Code Declaration from each employee.
IRD employer registration
Register through the myIR portal: select "I want to..." then "Register for new tax accounts." Enter your BIC code, bank account details, and employment start date, then submit. Employers without myIR access can use the IR334 paper form instead. IRD sends a confirmation letter covering wage record requirements, PAYE deduction obligations, and employer return schedules.
Income tax rates (PAYE)
Income Band (NZD) | PAYE Rate |
|---|---|
$0 to $14,000 | 10.5% |
$14,001 to $48,000 | 17.5% |
$48,001 to $70,000 | 30% |
$70,001 to $180,000 | 33% |
$180,001 and above | 39% |
Secondary tax rates
Employees with multiple income sources are taxed at secondary rates. These apply to the secondary job income only and follow the same five-band structure: 10.5% on $0 to $15,600; 17.5% on $15,601 to $53,500; 30% on $53,501 to $78,100; 33% on $78,101 to $180,000; and 39% on $180,001 and above.
KiwiSaver contributions
Contribution | Employer Rate | Employee Rate | Notes |
|---|---|---|---|
KiwiSaver | 3.5% (from 1 April 2026) | 3%, 4%, 6%, 8%, or 10% | Employer minimum increased from 3% in April 2026 |
Employees can opt out by submitting a KS10 form within 56 days of starting. The employer stops deductions and notifies IRD. IRD refunds contributions already made. Employers cannot encourage opt-out. Employees may re-enrol voluntarily at any time.
GST registration
Businesses that exceed $35,244 (NZD $60,000) in taxable supplies within any 12-month period must register for GST. The GST rate is 15%. This threshold applies to foreign employers with taxable New Zealand activity.
Managing PAYE registration, payday filing, and KiwiSaver contributions across multiple jurisdictions adds administrative load. See Gloroots pricing to assess the cost of running compliant New Zealand payroll through an EOR.
Employment Benefits in New Zealand
Statutory benefits in New Zealand are set by the Holidays Act 2003 and the Employment Relations Act 2000. Supplementary benefits are discretionary but increasingly expected in competitive hiring markets.
Paid time off and public holidays
Employees accrue four weeks of annual leave after 12 months of continuous employment. New Zealand observes 11 public holidays per year. Employees who work on a public holiday receive time-and-a-half pay plus an alternative holiday in lieu.
Sick leave
Employees are entitled to 10 days of sick leave per year after six months of service. Unused sick leave carries over, up to a maximum of 20 days at any one time.
Maternity and paternity leave
The primary carer is entitled to up to 26 weeks of paid parental leave, funded by the government. A spouse or partner of the primary carer is entitled to up to two weeks of unpaid partner's leave. Extended leave of up to 52 weeks total (minus any primary carer leave already taken) is available unpaid, provided the employee has worked for the same employer for at least 12 months at an average of 10 or more hours per week.
Public health insurance
New Zealand has no public health insurance scheme. The Accident Compensation Corporation (ACC) covers work-related and accidental injuries. Private health insurance is a common supplementary benefit offered by employers to fill this gap.
Leave entitlements summary
Leave Type | Entitlement | Pay Rate | Key Conditions |
|---|---|---|---|
Annual leave | 4 weeks | Ordinary weekly pay or average weekly earnings | After 12 months continuous employment |
Sick leave | 10 days per year | Relevant daily pay | After 6 months; carries over to 20-day maximum |
Public holidays | 11 days | Time-and-a-half plus alternative holiday if worked | Applies to all employees |
Paid parental leave | Up to 26 weeks | Government-funded | Primary carer; eligibility criteria apply |
Partner's leave | Up to 2 weeks | Unpaid | Spouse or partner of primary carer |
Extended leave | Up to 52 weeks total | Unpaid | 12 months tenure at 10+ hours/week average |
Bereavement leave | 3 days (close family); 1 day (others) | Relevant daily pay | Includes tangihanga (Maori funeral) recognition |
Domestic violence leave | 10 days per year | Relevant daily pay | After 6 months employment |
Additional statutory leave
Jury service leave is job-protected. The Ministry of Justice pays the juror fee; employers are not required to top up pay. Employees who are union members may take paid leave to attend approved employment relations education (ERE) courses. Employees are entitled to unpaid voting leave if they have no reasonable opportunity to vote outside work hours. Defence force volunteers are entitled to unpaid, job-protected leave for service.
Supplementary benefits
Common discretionary benefits include private health insurance, gym memberships, professional development funding, and flexible or remote work arrangements. Long service leave is offered by some employers. Cultural sensitivity matters: recognising tangihanga (Maori funeral) leave and Waitangi Day in workplace policies signals respect for New Zealand's bicultural identity and supports retention.
Work Permits and Visas in New Zealand
Non-New Zealand and non-Australian nationals must hold a work-authorising visa before employment begins. Employer accreditation with Immigration New Zealand (INZ) is a prerequisite for sponsoring an Accredited Employer Work Visa (AEWV).
The AEWV process runs in three steps: employer accreditation, Job Check submission, then the candidate's visa application. Each step carries distinct INZ assessment criteria and separate processing timelines.
For the Job Check, the employer submits an application for each specific role. INZ assesses whether the role is genuine, whether the pay rate meets market standards, and whether a suitable New Zealand citizen or resident could fill the position. This labour market test is waived for Green List Tier 1 roles.
Employers who breach employment standards can be placed on INZ's visa stand-down list, restricting their ability to support future visa applications. Accredited employers also cannot apply 90-day trial period clauses to AEWV holders; doing so risks accreditation revocation.
Visa type | Purpose | Validity |
|---|---|---|
Accredited Employer Work Visa (AEWV) | Skilled work for accredited employers | Up to 5 years |
Green List Tier 1 | Straight-to-residence for critical shortage roles | Permanent residence pathway |
Green List Tier 2 | Residence after 2 years for shortage roles | 2-year work visa, then residence |
SMC Skilled Work Experience | Skilled Migrant Category points-based residence | Points-based, no fixed term |
SMC Trades and Technician | Trades and technical roles under SMC | Points-based, no fixed term |
Onboarding New Hires in New Zealand
Onboarding in New Zealand is a compliance sequence with legal deadlines attached to each step. Missing one deadline creates retroactive liability, not just an administrative gap.
Before Day One, the employer must: sign the employment agreement, register with IRD as a PAYE employer, set up KiwiSaver and ACC levy processing, and confirm work authorisation for any non-NZ or non-Australian national.
On Day One, collect the employee's IR330 Tax Code Declaration and bank account details. Provide a health and safety orientation and brief the employee on leave entitlements and performance review timelines.
During the first week, submit IR346K to IRD, confirm KiwiSaver enrolment or the opt-out window, provide company policy acknowledgements, and set up payslip delivery.
Beyond the first week, monitor the 56-day KiwiSaver opt-out window, file the first payday return on or before the first payday, and schedule any probation or trial period review if applicable.
Pre-employment checks are permitted and include drug and alcohol testing, criminal record checks, reference checks, and qualification verification. Each check must be relevant to the role. The Privacy Act 2020 governs how all personal data collected during this process is handled and stored.
NDAs, Confidentiality and IP Protection in New Zealand
NDAs and confidentiality clauses are enforceable in New Zealand under common law and standard contract principles.
Intellectual property created during employment vests in the employer by default. Restraint-of-trade clauses are enforceable only where reasonable in scope, duration, and geographic reach. Courts will not enforce restrictions that go beyond what is necessary to protect a legitimate business interest.
From 1 May 2026, Information Privacy Principle 3A requires employers to notify candidates when collecting personal information indirectly. This applies to reference checks and background screening. Failure to notify creates regulatory exposure under the Privacy Act 2020 and should be addressed in your standard hiring process before that date.
Termination and Offboarding in New Zealand
New Zealand has no at-will employment. Every termination requires a substantive justifiable reason and a fair process. Procedural failures alone trigger personal grievance remedies, even where the underlying reason for dismissal is valid.
Final pay must include all outstanding wages, accrued annual leave, and any contractual redundancy payment owed under the employment agreement.
Practical offboarding steps:
Provide written notice per the employment agreement
Issue a final payslip that includes the accrued annual leave payout
Revoke system access and collect company property
Submit the final payday filing to IRD on or before the last payday
Retain the personnel file, including the employment agreement, payslips, and policy acknowledgements, for a minimum of seven years
One additional restriction applies to visa holders. Employees on an Accredited Employer Work Visa (AEWV) cannot be subject to a 90-day trial period clause. Including one in their agreement risks accreditation revocation by Immigration New Zealand.
Business Culture in New Zealand
New Zealand workplaces are direct, informal, and egalitarian. First names are standard from the first meeting, and titles are rarely used at any level.
Organisational structures are flat. Managers are expected to be accessible and collaborative, not directive. Employees expect to be consulted on decisions, not simply informed after the fact.
Communication: Low-context and straightforward. Say what you mean. Excessive formality reads as evasive.
Hierarchy: Flat structures are the norm. Seniority does not insulate managers from direct feedback.
Decision-making: Consensus-oriented. Employees expect input before decisions are finalised.
Work-life balance: Flexible hours and remote work options are strong cultural expectations, not perks. Offers that ignore this lose candidates.
Relationship-building: Trust is built through reliability and follow-through, not formal relationship investment.
Maori cultural awareness: Acknowledgement of Te Tiriti o Waitangi, use of te reo Maori greetings, and sensitivity to tikanga Maori (including tangihanga leave) are increasingly expected in New Zealand workplaces.
Negotiation: Straightforward and low-context. Aggressive negotiation tactics are counterproductive and damage trust quickly.
Top Sectors to Hire From in New Zealand
New Zealand's strongest hiring demand is concentrated in five sectors, each with documented shortages and active government priority status. If you are expanding into the region, these are the talent pools worth targeting. For a comparison of hiring conditions across the Tasman, see our guide to hire employees in Australia.
Construction: Job ad growth of 13% year-on-year (Seek NZ, January 2026). In-demand roles include civil engineers, quantity surveyors, project managers, and licensed building practitioners. Construction is a Green List Tier 1 priority occupation category.
Healthcare and social assistance: Registered nurses, GPs, midwives, and aged care workers are among the top shortage occupations on the INZ Green List 2026. A straight-to-residence pathway is available for qualifying roles.
Information technology: Sustained demand driven by digital transformation across both public and private sectors. In-demand roles include software engineers (approximately USD 5,410 gross per month ($5,387 (NZD 9,170)/month)), cybersecurity specialists, data engineers, and cloud architects.
Engineering: Civil, structural, mechanical, and electrical engineers hold Green List Tier 1 priority status. Demand is consistent across infrastructure and energy projects.
Agriculture and primary industries: Dairy, horticulture, and viticulture form the backbone of New Zealand's export economy. Labour demand is cyclical. In-demand roles include farm managers, agricultural technicians, and viticulture workers.
Top Cities to Hire From in New Zealand
New Zealand's talent is concentrated in five cities, each with a distinct specialisation that shapes where you hire and what you find.
Auckland: New Zealand's largest city and commercial centre. The dominant talent pool for IT, finance, professional services, and engineering. Most of the country's tech startups and multinational offices are based here.
Wellington: The capital city and hub for government, public sector, policy, legal, and technology roles. Public Service Association membership is concentrated here, making it the primary market for regulated and policy-facing positions.
Christchurch: The South Island's largest city. Construction and engineering talent is strong following the post-earthquake rebuild, and a growing tech sector (ChristchurchNZ Tech Sector) is adding software and digital roles.
Hamilton (Waikato): The centre for agricultural science, dairy industry, and agri-tech talent. Proximity to the University of Waikato supports a steady graduate pipeline in applied sciences.
Dunedin: A university city anchored by the University of Otago. Healthcare, biomedical research, and education talent are concentrated here, with a strong graduate pipeline for healthcare roles on New Zealand's Green List.
Teams expanding across Asia-Pacific often pair New Zealand hires with talent from other regional markets. See our guides on how to hire employees in Singapore and hire employees in Philippines for regional context.
Hire Compliantly in New Zealand with Gloroots
Gloroots acts as the legal employer for your Polish hires, managing employment contracts, ZUS registration, PLN payroll, statutory benefits, and applicable Polish employment requirements without requiring you to establish your own local employing entity.
This approach is suitable for companies testing the Polish market, hiring their first employees, or scaling distributed teams without taking on the administrative requirements of establishing and maintaining a local entity.
No local entity required: Employ workers in Poland through Gloroots without setting up your own Polish employing entity.
Streamlined onboarding: Coordinate employment contracts, required registrations, payroll setup, and other onboarding processes as part of the employee’s transition to employment.
Local compliance and payroll: Manage applicable ZUS, PIT, Labour Code, statutory benefit, and payroll requirements. Where applicable, Gloroots can also support requirements arising from collective bargaining arrangements.
GDPR-aligned processes: Handle employee data as part of the employment and payroll process in accordance with applicable data-protection requirements.
Predictable pricing: Get transparent per-employee pricing with applicable employer costs, benefits, and other charges clearly identified.
Dedicated support: Access local HR and compliance support for contracts, leave, benefits, payroll, and offboarding throughout the employment lifecycle.
For companies considering whether to establish a Polish entity or use an EOR, the right option depends on factors such as expected headcount, hiring duration, operational requirements, and the cost of maintaining local employer infrastructure. An EOR can provide a lower-commitment route for companies that want to hire in Poland without establishing their own employing entity.
Frequently Asked Questions About Hiring in New Zealand
How quickly can I hire an employee in New Zealand through an EOR?
An Employer of Record can onboard a New Zealand employee in as little as 1 to 2 working days once employee details are complete. The EOR handles PAYE registration, KiwiSaver enrolment, and ACC levy setup on your behalf. You retain full operational control from day one without registering a local entity.
What does it actually cost to employ someone in New Zealand?
Total employer cost combines gross salary, KiwiSaver employer contribution (3.5% from April 2026), Employer Superannuation Contribution Tax (ESCT), and the ACC Work Account levy. For a software engineer earning approximately $5,387 (NZD $9,170) gross per month, total employer cost reaches around $5,633 (NZD $9,590) per month. These figures should be modelled before making an offer.
Does at-will employment exist in New Zealand?
No. The Employment Relations Act 2000 requires substantive justification and a fair process for every termination. Employers cannot dismiss an employee simply because they choose to. Personal grievance remedies include reinstatement and compensation, which distinguishes New Zealand employment law sharply from US at-will employment doctrine.
What is the AEWV and how does the Job Check process work?
The Accredited Employer Work Visa (AEWV) requires the employer to first obtain accreditation from Immigration New Zealand, either standard or high-volume. The employer then submits a Job Check for each role, where INZ assesses whether the role is genuine, whether pay meets market rates, and whether a labour market test has been completed.
Once the Job Check is approved, the candidate applies for the visa. AEWV holders cannot be subject to a 90-day trial period clause, regardless of employer size.
What are the minimum wage rates in New Zealand for 2026?
From 1 April 2026, the adult minimum wage is $14 (NZD $23.95) per hour. The starting-out wage applies to eligible workers aged 16 to 19 and is set at $11 (NZD $19.16) per hour. The training wage, also $11 (NZD $19.16) per hour, applies to apprentices aged 20 and over who are in a recognised industry training programme.
What statutory leave entitlements must New Zealand employers provide?
Employers must provide four weeks of annual leave, 10 days of sick leave per year, and 11 public holidays. Primary carers are entitled to up to 26 weeks of paid parental leave. Partners receive up to two weeks of unpaid leave. Bereavement leave and 10 days of domestic violence leave are also mandatory.
Supplementary benefits such as private health insurance and flexible work arrangements are discretionary. They are not required by law but are increasingly expected in competitive hiring markets, particularly in IT, engineering, and healthcare.
Can I use a contractor instead of an employee in New Zealand?
Yes, but only when the relationship genuinely meets the statutory gateway test introduced by the Employment Relations Amendment Act 2026. The written agreement must confirm the worker has freedom to work for others, can subcontract, and can decline additional work without the arrangement ending. If the test is not met, the traditional relationship test applies and reclassification risk follows.
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