Salary Calculator
New Zealand
Native Teams’ payroll calculator helps you calculate salaries and understand the associated costs in 85+ countries worldwide. Whether you want to estimate the costs of hiring employees internationally or you want to calculate your own salary in your home country, our calculator offers the convenience and simplicity you need.
The calculation process is very simple - just choose the country of employment, add details about the employment status, and fill in the salary details. Our calculator will instantly generate a detailed breakdown of the net and gross salary and provide detailed insights into your tax obligations, social security contributions, and other mandatory deductions specific to the hiring country.
We've noticed that you are interested in Payroll in New Zealand!
Please fill up your email address and get free access to your salary breakdown and a localised work contract template.
How does the salary calculator for New Zealand work?
Native Teams’ payroll calculator for New Zealand will help you estimate your net salary by factoring in the country’s tax rates and mandatory deductions.
To start, you’ll need to enter the gross salary, which is the total salary amount before any deductions. The calculator will then apply income tax based on New Zealand’s progressive tax system and deduct compulsory contributions, such as the KiwiSaver retirement savings scheme.
After subtracting taxes and contributions, the calculator provides the net salary, which is the final amount an employee receives in their bank account.
What is the salary cost in New Zealand?
The total cost of salary in New Zealand includes income tax, social contributions, and other mandatory deductions that both employers and employees must cover.
The gross salary is the base pay before deductions and is used to calculate taxes and contributions. This includes the KiwiSaver, which is a voluntary retirement savings scheme where employees can choose to contribute 3%, 4%, 6%, 8%, or 10% of their gross salary. If no rate is selected, the default contribution rate is 3%. Employers must also contribute a minimum of 3% of the employee’s gross salary to the employee’s KiwiSaver scheme.
Employees are also subject to a progressive income tax rate, which is calculated depending on the income level of the individual.
How much tax do you pay in New Zealand?
Employed individuals in New Zealand must pay income taxes on their earnings. The income tax is calculated on a progressive scale, depending on the employee’s level of income. The following are the income tax rates in New Zealand:
-Income up to NZD 15,600: Tax rate of 10.5%.
-Income from NZD 15,601 to NZD 53,500: Tax rate of 17.5%.
-Income from NZD 53,501 to NZD 78,100: Tax rate of 30%.
-Income from NZD 78,101 to NZD 180,000: Tax rate of 33%.
-Income over NZD 180,001: Tax rate of 39%.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in New Zealand?
Employed individuals in New Zealand are entitled to a set of mandatory employment benefits provided by their employers. This includes social security contributions, such as contributions to the KiwiSaver, which provides retirement savings for the members of the scheme.
In addition to mandatory contributions, employers must also ensure that their employees receive paid leave, including annual leave, public holidays, sick leave, bereavement leave, and others.
These mandatory employment benefits are designed to protect employed individuals’ rights and well-being in their workplaces.
Are there any other benefits or additional expenses?
Many employers in New Zealand provide additional employee benefits to nurture satisfaction among existing employees and attract new ones to their companies.
Private health insurance is among the most commonly provided supplementary benefits, giving employees faster access and broader coverage to medical services beyond the public healthcare system. Gym memberships and wellness programmes are also among the extra benefits employers subsidise to promote healthier lifestyles and overall well-being.
Employers in New Zealand might also offer transportation allowances to cover commuting costs, while some of them even offer company vehicles. For the employees who have high-performance in the workplace, many employers also provide performance-based bonuses and rewards.
Finally, employers in New Zealand often support their employees with educational opportunities, including tuition reimbursements, access to online courses, and other programmes that help employees boost their professional skills.
What is the difference between gross and net in the New Zealand salary calculator?
The difference between gross and net salary in the New Zealand calculator comes down to deductions such as income taxes and contributions.
The gross salary is the total amount an employee earns before the mandatory deductions are applied. The net salary, on the other hand, is what remains after applying income tax, KiwiSaver contributions, and other deductions. This is the actual take-home pay or the amount the employee receives in their bank account on their payday.
How can Native Teams help with employment, salary and taxes in New Zealand?
Native Teams is your reliable partner, offering a complete solution to help you manage salaries, taxes, and contributions in New Zealand. With our suite of solutions, you can simplify your payroll management while working in full compliance with New Zealand’s tax and labour laws.
Our expert tax and legal teams are at your service, whether for calculating salaries, fulfilling your tax obligations, or administering employee benefits to your team. Native Teams will reduce the administrative and compliance tasks from your work, giving you the peace of mind that all your legal obligations are met accurately and on time.
