Work & tax: pay, leave, tax codes, KiwiSaver, job loss and running a business

The Holidays Act 2003 sets the minimum leave for employees in New Zealand. After 12 months of continuous work for the same employer, you get at least 4 weeks of paid annual leave. After 6 months, you get 10 days of paid sick leave each year. If a public holiday falls on a day you would normally work, you get the day off with pay. If you work that day, you get at least time and a half, plus an extra day off. A new Employment Leave Act will not take effect until 6 August 2028. Until then, the current rules still apply.

KiwiSaver is New Zealand's voluntary, work-based retirement savings scheme. You save part of your pay before tax, and your employer and the government also add money to your account. You usually cannot take the money out until you are 65. You can take it out earlier in some cases, such as buying your first home. From 1 April 2026, the default contribution rate went up from 3% to 3.5%.

Jobseeker Support is a weekly payment from Work and Income. It helps people who are looking for work, or who cannot work for now because of a health condition. You usually need to be 18 or older and a New Zealand citizen or residence class visa holder. You must also have lived in New Zealand for at least 2 years in a row since becoming a citizen or getting residence. You can apply online through MyMSD. While you receive the payment, you must meet obligations such as looking for work. You need to reapply every 26 weeks.

If you are an employee aged 16 or over and work in New Zealand, you must get at least the minimum wage for every hour you work. From 1 April 2026, the adult minimum wage is NZ$23.95 an hour (before tax). Every employee must have a written employment agreement. A 90-day trial period is only valid if it is written into the agreement and you signed the agreement before you started work.

The most common ways to run your own business in New Zealand are as a sole trader or through a company. Sole traders do not need to register with a government agency. You just tell Inland Revenue. To start a company, you register online with the Companies Office and pay a fee. You must register for GST once your turnover reaches NZ$60,000. If your end-of-year tax bill from your last return was more than NZ$5,000, you must also pay provisional tax in instalments.

If you get wages, a benefit or a pension in New Zealand, you must tell the payer your tax code on an IR330 form. The payer uses this code to take tax from each payment. If you choose the wrong code, you may have to pay more tax at the end of the year, or you may get a refund. The tax year ends on 31 March. If tax has already been taken from all your income, Inland Revenue (IRD) works out your tax for you and sends you an income tax assessment. If you have income that has not been taxed, you must file an IR3 return yourself.

If you have a problem with your employer, were dismissed unfairly, or are owed wages, talk to your employer first. Then use the free official services: Employment New Zealand's Early Resolution service and free MBIE mediation. To raise a personal grievance, you usually must tell your employer in writing within 90 days. If you cannot agree, you can apply to the Employment Relations Authority (ERA) for a decision. You can report problems with minimum wage, holiday pay and similar issues to the Labour Inspectorate. Migrant workers who are being exploited can call 0800 200 088.