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HR facts
It is important to ensure you are meeting your obligations as an employer by keeping up with legislative changes and staying abreast of the key facts that will affect your business and employees. Our HR specialists have collated everything you need to know so you have it all at your fingertips.
Get your copy of HR Facts
Individual income tax rates
Income |
Rate |
| 0 - 14,000 | 10.5% |
| 14,001 - 48,000 | 17.5% |
| 48,001 - 70,000 | 30% |
| 70,001 - 180,000 | 33% |
| Over 180,000 | 39% |
Student loans
The repayment threshold is currently $20,280 a year (or $390 per week), with the repayment rate at 12%.
Repayment holidays are up to 12 months in length for borrowers who go overseas and apply for one. Losses cannot be used against income to reduce liability for student loan repayments.
Employer Superannuation Contribution Tax (ESCT)
ESCT is deductible from employer contributions to superannuation schemes, including employer contributions to KiwiSaver.
Income plus Superannuation Contributions |
Rate |
| 0 - 16,800 | 10.5% |
| 16,801 - 57,600 |
17.5% |
| 57,601 - 84,000 | 30% |
| 84,001 - 216,000 | 33% |
| Over 216,000 | 39% |
KiwiSaver Contributions
| Rate | |
| Employee contribution | 3, 4, 6, 8 or 10% |
| Employer contribution | 3% |
|
Member tax credit |
50c for each $1 contributed by a member, to a maximum of $521.43 |
Fringe Benefit Tax (FBT) Rates
Quarters 1 to 3 |
Quarter 4 |
| 63.93% (single rate) | 63.93% (single rate) or the alternate rate calculation (see below) |
| 49.25% (alternate rate) |
alternate rate calculation (see below) |
The alternate rate calculation applies the following rates:
Income plus Fringe Benefits |
Rate |
| 0 - 12,530 | 11.73% |
| 12,531 - 40,580 | 21.21% |
| 40,581 - 55,980 | 42.86% |
| 55,981 - 129,680 | 49.25 |
| Over 129,680 | 63.93% |
Motor Vehicles Kilometre Rate
Available options are:
- The Inland Revenue kilometre rate for motor vehicles
- Other published kilometre rates (e.g. AA rates)
- Actual costs
Latest Inland Revenue kilometre rates (per kilometre) are:
Vehicle Type |
First 14,000 kms |
After 14,000 kms |
| Petrol or diesel | 79 cents | 27 cents |
| Petrol hybrid | 79 cents | 16 cents |
| Electric | 79 cents | 9 cents |
Withholding Tax on Schedular Payments & Payments to Non Resident Contractors
|
|
Rate |
| Minimum rate for residents | 10% |
| Minimum rate for non-residents | 15% |
| Non-resident entertainers | 20% |
| IRD number not supplied (Company) | 20% |
| IRD number not supplied (Individual) | 45% |
Schedular payments are payments for specific activities such as directorships, labour hire firm contractors, actors and commission sellers.
Recipients are able to choose their rate on the filing of an IR330C provided it is greater than the minimum rates above. Default rates apply where a rate is not chosen.
Rates for non-residents can apply to non-resident contractors performing services of any kind. Exemptions are available in some situations.
Paid Parental Leave
Paid parental leave (PPL) is a government-funded entitlement paid to eligible primary carers and adoptive parents when they take parental leave from their job(s) to care for their new-born or adopted child under the age of six.
These payments go towards the loss of income that primary carers and adoptive parents experience when they take this parental leave.
How much are PPL payments:
For employees PPL payments equal your normal pay up to a current maximum of $606.46 a week before tax.
For self-employed persons PPL payments equal your average weekly earnings up to a current maximum of $606.46 a week before tax. If the self-employed person makes a loss or earns less than the minimum wage, for at least 10 hours work a week, the payment is $200 each week before tax. This is equivalent to 10 hours each week at the current minimum wage rate.
How long can the employee receive PPL payments for:
If the eligible employee has a baby or adopts a child under the age of six, then the employee can receive PPL payments for a maximum of 26 weeks.
How PPL is paid:
Inland Revenue will pay PPL payments directly into the employee’s bank account each fortnight. The payments will be treated as income, just like normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate applies to the employee). It will not have earners’ levy deducted from it.
Employees can work limited Keeping in Touch (KIT) hours during their PPL without losing their entitlement. Employees can work up to 64 hours over the parental leave term, as long as it is not within the first 28 days after the child is born.
2022 School Holidays
2022 school term dates for most New Zealand primary, intermediate and secondary schools.
Term 1 2022
- Starts between Monday 31 January (at the earliest); and Tuesday 8 February (at the latest)
- Ends Thursday 14 April
Term 2 2022
- Starts Monday 2 May
- Ends Friday 8 July
Term 3 2022
- Starts Monday 25 July
- Ends Friday 30 September
Term 4 2022
- Starts Monday 17 October
- Ends no later than Tuesday 20 December
Contact your school to check:
http://www.educationcounts.govt.nz/find-school
School and Public Holidays
School terms and holidays:
https://www.education.govt.nz/school/school-terms-and-holiday-dates
2022 Public Holidays
|
Actual date |
Observed |
|
|
New Year’s Day |
1 January |
Saturday 1 January or Monday 3 January 2022 |
|
Day after New Year’s Day |
2 January |
Sunday 2 January or Tuesday 4 January 2022 |
|
Waitangi Day |
6 February |
Sunday 6 February or Monday 7 February 2022 |
|
Good Friday |
Varies |
Friday 15 April 2022 |
|
Easter Monday |
Varies |
Monday 18 April 2022 |
|
ANZAC Day |
25 April |
Monday 25 April 2022 |
|
Queen’s Birthday |
1st Monday in June |
Monday 6 June 2022 |
|
Matariki |
Varies |
Friday 24 June 2022 |
|
Labour Day |
4th Monday in October |
Monday 24 October 2022 |
|
Christmas Day |
25 December |
Sunday 25 December or Tuesday 27 December 2022 |
|
Boxing Day |
26 December |
Monday 26 December 2022 |
The Anniversary Day of the Province in which an employee works is observed as follows:
|
Province |
2022 |
|
Wellington |
Monday 24 January |
|
Auckland |
Monday 31 January |
|
Northland |
Monday 31 January |
|
Nelson |
Monday 31 January |
|
Taranaki |
Monday 14 March |
|
Otago |
Monday 21 March |
|
Southland |
Tuesday 19 April |
|
South Canterbury |
Monday 26 September |
|
Hawke’s Bay |
Friday 21 October |
|
Marlborough |
Monday 31 October |
|
Canterbury |
Friday 11 November |
|
Westland |
Monday 28 November |
|
Chatham Islands |
Monday 28 November |
New Zealand Public Holidays 2022
Key New Zealand Employment Legislation
- Employment Relations Act 2000
- Equal Pay Act 1972
- Holidays Act 2003
- Health and Safety at Work Act 2015
- Human Rights Act 1993
- Injury Prevention, Rehabilitation & Compensation Act 2001
- Minimum Wage Act 1983
- Parental Leave and Employment Protection Act 1987
- Privacy Act 2020
- Protected Disclosures Act 2000
- Wages Protection Act 1983
See http://www.legislation.govt.nz for more information.
Employment Agreements
What an Employment Agreement must include:
|
Employer & Employee |
Your name and your employee’s name as you are both ‘parties’ to the employment agreement |
|
Position |
The position which the employee is employed in (e.g. Sales Manager) |
|
Type of Work |
If the employee is working in a permanent, fixed-term or casual capacity |
|
Duties |
The type of work required as part of the job (e.g. taking orders, reception work) |
|
Place of Work |
Where the employee will be required to work |
|
Working Hours |
The agreed hours or an indication of the hours the employee will work |
|
Payment of wages |
Must be equal or greater than the relevant minimum wage and include if an hourly rate or salary, how they are paid and over what period |
|
Public Holidays |
State if the employee can decline to work, must work or be on call, including compensation for working or being available; that the employee will be paid at least time-and-a-half for any time worked on a public holiday |
|
Resolving Employment Relationship Problems |
An explanation of the steps that should be taken to deal with workplace problems if they happen |
|
Employee Protection Provision |
What process the employer will follow in restructuring situations |
|
Employee Acknowledgement |
Acknowledgement that the employee has read, understood and agrees to the terms and conditions of the agreement |
|
Other matters |
Any other matters agreed upon, such as trial periods, probationary arrangements or availability provisions. A plain language explanation of the services available for the resolution of the employment relationship problems, including reference to the period of 90 days under section 114 in which a personal grievance must be raised |
Note: Failure to have a written IEA (Individual Employment Agreement) or failure to retain a copy, may result in a penalty of up to $10,000 for individuals or $20,000 for companies. This is for each breach, so the penalty could be imposed for each employee who does not have a compliant agreement. From 6 May 2019, an employer’s failure to have a compliant written IEA for each employee allows the Ministry of Business, Innovation and Employment to issue an infringement notice which will have an infringement fee of $1,000.
Minimum wage
The current minimum wage rate (before tax) is $20.00 per hour and applies to employees aged 16 years or over.
Health and Safety
The Health and Safety at Work Act 2015 outlines that businesses are responsible for the health and safety of their employees and any others impacted by their work. More information on this primary duty of care and other key facts can be found on the WorkSafe website: http://www.business.govt.nz/worksafe.
Disclaimer
We have made every effort to ensure that the information provided in this publication is accurate as at 01 October 2021. However, this publication should not be relied upon as professional advice.
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