HR facts

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

Your location

You also have the option to subscribe to:

Individual income tax rates


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 $22,828 (2024 tax year) a year (or $439 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


0 - 16,800 10.5%
16,801 - 57,600


57,601 - 84,000 30%
84,001 - 216,000 33%
Over 216,001 39%
KiwiSaver Contributions
Employee contribution 3, 4, 6, 8 or 10%
Employer contribution 3%

Member tax credit

50c for each $1 contributed by an employee, 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


0 - 12,530 11.73%
12,531 - 40,580 21.21%
40,581 - 55,980 42.86%
55,981 - 129,680 49.25
Over 129,681 63.93%
Motor Vehicles Mileage Rate

Available options are:

  • The Inland Revenue mileage rate for motor vehicles
  • Other published mileage rates (e.g. AA rates)
  • Actual costs

The current Inland Revenue mileage rate for motor vehicles is:

Vehicle Type

First 14,000 kilometres (tier one)

After 14,000 kilometres (tier two)

Petrol or diesel 95 cents 34 cents
Petrol hybrid 95 cents 20 cents
Electric 95 cents 11 cents
Withholding Tax on Schedular Payments & Payments to Non-Resident Contractors



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 $712.17 a week before tax.

For self-employed persons, PPL payments equal your average weekly earnings up to a current maximum of $712.17 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 $227.00 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 that 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.

2023/2024 School Holidays

2023/2024 school term dates for most New Zealand primary, intermediate and secondary schools.


Term 3, 2023

  • Starts Monday 17 July
  • Ends Friday 22 September


Term 4, 2023

  • Starts Monday 9 October
  • Ends no later than Wednesday 20 December


Term 1, 2024

  • Starts Monday 29 January (at the earliest) and Wednesday 7 February (at the latest)
  • Ends Friday 12 April


Term 2, 2024

  • Starts Monday 29 April
  • Ends Friday 5 July


Contact your school to check:


School and Public Holidays

School terms and holidays:

2023/2024 Public Holidays

Actual date


Labour Day

4th Monday in October

Monday 23 October 2023

Christmas Day

25 December

Monday 25 December

Boxing Day

26 December

Tuesday 26 December

New Year's Day

1 January

Monday 1 January 2024

Day after New Year's Day

2 January

Tuesday 2 January

Waitangi Day

6 February

Tuesday 6 February

Good Friday


Friday 29 March

Easter Monday


Monday 1 April


25 April

Thursday 25 April

King's Birthday

1st Monday in June

Monday 3 June



Friday 28 June

The Anniversary Day of the Province in which an employee works is observed as follows:



South Canterbury

Monday 25 September 2023

Hawke’s Bay

Friday 20 October


Monday 30 October


Friday 17 November


Monday 4 December

Chatham Islands

Monday 27 November


Monday 23 January 2024


Monday 29 January


Monday 29 January


Monday 29 January


Monday 11 March


Monday 25 March


Tuesday 2 April


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 (Protection of Whistleblowers) Act 2022
  • Wages Protection Act 1983

See 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


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


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 to 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 $22.70 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:


We have made every effort to ensure that the information provided above is accurate as at 10 July 2023. However, it should not be relied upon as professional advice.


Choose your location for better results

Make an Enquiry

Find a HR specialist

Our Baker Tilly Staples Rodway HR team can help you stay updated on key facts that can impact your business and employees.

Our website uses cookies to help understand and improve your experience. Please let us know if that’s okay by you.

Cookies help us understand how you use our website, so we can serve up the right information here and in our other marketing.