Hiring in New Zealand - How To Hire New Zealander Employee

What should I know about hiring in New Zealand?

The process of hiring in New Zealand may be both exciting and challenging, especially for those who are not familiar with the local labour market. The first step is to become familiar with the rules and laws that must be followed.

This includes minimum wage, employment contracts, and health and safety policies. Equally important is developing an open and inclusive hiring policy that complies with anti-discrimination legislation and promotes a diverse workforce.

In addition, offering attractive salaries, flexible scheduling options, and training and advancement opportunities will help you recruit and retain top staff. Last but not least, the workforce in New Zealand is diverse and multicultural; thus, it is crucial to embrace diversity and inclusivity.

Why is New Zealand a good choice for finding remote employees?

New Zealand has emerged as a popular choice for finding remote employees, and for good reason. The government offers several incentives and support for companies wishing to hire remote workers. In addition, the country has a highly skilled and educated workforce with a strong work ethic.

English proficiency is widespread, making communication seamless. With a strong emphasis on innovation and technology, New Zealand also boasts a highly educated, competent, and qualified workforce.

The nation’s culture also prioritises work-life balance, which may result in highly productive and motivated remote workers. Finally, New Zealand’s natural beauty and high standard of living make it a desirable location for remote workers looking for a better work-life balance.

How can Native Teams help you hire in New Zealand

You can rely on Native Teams if you’re having problems locating appropriate employees due to language barriers, cultural conventions, or government restrictions. Throughout our Employer of Record services, including managing regional laws and regulations, cultural variations, and language challenges, our team of professionals can offer insightful guidance and support.

Hire your first New Zealander employee with Native Teams.

Legal requirements for hiring in New Zealand

Minimum wage

In New Zealand, the minimum hourly wage is 22.7 NZD.

Contributions & taxes

Employer tax

Total employment cost is 4.00%.

Corporate tax

The corporate tax rate in New Zealand is 28%.

Employee tax

The corporate tax rate in New Zealand is 28%.

Income tax

0.00 to 14,000 NZD: 10.5%.
14,001 NZD to 48,000 NZD: 17.5%.
48,001 NZD to 70,000 NZD: 30.0%.
70,001 NZD to 180,000 NZD: 33.0%.
180,000 NZD + : 39.0%.

To calculate the salary and taxes in New Zealand please click here.

Payroll cycle

In New Zealand, payroll runs on a monthly or biweekly schedule.

Is there a 13th salary in New Zealand?

13th-month payments are not required by law in New Zealand.

Labor rules

Probation period rules

In New Zealand, the probationary term can last up to 180 days and begins on the first day of employment. The job contract will specify the precise time frame; however, the typical probationary period is between 3 and 6 months.

Notice period

Fair and reasonable notice must be provided if no notice period is specified in the employment agreement. Considerations for this include:

The employee’s tenure.
The nature of the position.
The likely replacement time.
Established company policy.

Depending on the position, 2 to 4 weeks of notice is frequently considered reasonable.

Severance pay

Severance pay is typically not necessary unless there is a possibility of redundancy.

Working hours

In New Zealand, a full-time work week typically encompasses 35 to 40 hours. A full business day runs from 9 am to 5 pm.

Leave and benefits

Public holidays

National public holidays in New Zealand include:

New Year’s Day
Day after New Year’s Day
Waitangi Day
Good Friday
Easter Monday
Anzac Day
Queen’s Birthday
Matariki Day
Labor Day
Christmas Day
Boxing Day

Sick leave

After 6 months of service, employees in New Zealand are entitled to 10 days of paid sick leave. In addition, to increase their yearly entitlement, employees are only permitted to carry over a maximum of 10 unused sick days from the previous year, for a total of 20 days.

Maternity leave & Paternity leave

Pregnant employees are eligible for 26 weeks of paid primary care leave and get their usual weekly pay. The first day of primary caretaker leave is the due date. In New Zealand, paternity leave allows partners to take time off beginning 21 days before the baby is due or on the day their partner or spouse takes primary caretaker leave for a kid under the age of six and ending 21 days after the baby is born.

Other leave

Bereavement leave

Workers are entitled to 3 days of paid bereavement leave in the event of the loss of a parent, child, spouse, child, grandparent, or mother- or father-in-law. If someone close to them dies who is not on the list above, they are also entitled to one day off. In the event of several deaths within 30 days, employees are eligible for an additional 3 days.

Special leave

The employee is entitled to 10 days of unpaid time off for appointments relating to her pregnancy.

If a worker puts in regular hours for an employer in either a full-time or part-time position, they are entitled to at least 4 weeks of paid annual leave each year.

What are the minimum vacation days?

Employees are entitled to a minimum of 20 days or 4 weeks of paid leave every year.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in New Zealand, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in New Zealand?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

No paperwork: We will handle all the necessary paperwork for you.
Save on taxes: We help you handle your taxes.
No company set up: You can expand your business using our company entitles.
Online onboarding: We’re here to ensure your onboarding process is trouble-free.
No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
Increase your profit: We assist you in growing your business and maximizing your profits.
Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
Local support: We can assist you in understanding and complying with the relevant local laws.