New Zealand PEO Services

Working Hours

Generally, a maximum of 40 hours per week is the standard in New Zealand, unless an employer and employee have agreed otherwise. If the hours of work are to be changed, both parties must formalise this in writing with a revised employment agreement.

Leave Entitlement

All employees are entitled to the following leave allowances:

• Four weeks of paid annual leave for each 12 months of continuous employment (with the same employer)
• Up to 11 public holidays each year
• Sickness and bereavement leave
  • These are accessible either after six months of continuous employment, or
  • after working for the same employer for six months at an average of 10 hours per week, with at least one hour in each week, or 40 hours every month
• The minimum sick leave entitlement is 10 days per year (this increased from 5 days in July 2021).

Public Holidays

The Public Holidays which are observed in New Zealand include the following:

• 1^st January - New Year’s Day
• 2^nd January – Day after New Year’s Day
• 6^th February - Waitangi Day
• Good Friday
• Easter Monday
• 25^th April - ANZAC Day
• 1^st Monday in June – Queen’s Birthday
• Matariki (date varies)
• 4^th Monday in October – Labour Day
• 25^th December – Christmas Day
• 26^th December – Boxing Day

Parental Leaves

Employees in New Zealand are entitled to up to 52 weeks of parental leave. This is made up of 26 weeks as a primary carer, and a further 26 weeks’ extended leave.

This leave can be accessed if either the employee has given birth to a child, or is going to be the primary carer, with full responsibility of a child under 6. Employees must have worked for their employer for at least 10 hours a week for any of the 26 weeks in the year before their child arrives.

Employees whose partners have either given birth or taken responsibility for a child under the age of 6, can take 2 weeks of partner’s leave. Parental leave can also be transferred between a couple to be most beneficial for their circumstances.

Taxation

Both individuals and businesses in New Zealand are required to pay tax on their income. Levies are also implemented by the Government to collect tax from the sales of some goods and services. New Zealand’s income tax is known as PAYE (pay as you earn), and its Goods and Services Rax is known as GST.

New Zealand’s income tax rates are progressive and depend on the individual’s income. This is broken down in the following way:

• The top rate of tax is 39%, and is applied on earned income over NZ$180,000
• The lowest tax rate is 10.5%, and is applied on income up to NZ$14,000

Businesses and corporates are taxed at a flat rate of 28%, and GST is a taxed at a flat rate of 15%.

Visas

There is a variety of visas which can be applied for in New Zealand, these are the following:

Temporary visas:

• Allows an individual to live and work in New Zealand for a set period. Temporary work can be used as a step towards gaining residence in New Zealand permanently.
• Temporary work visas can be used by people who work in professions which are experiencing skill shortages, or have a job offer from a New Zealand employer. Most work visas do not have an age limit.
• The Working holiday visa is designed for young people, aged 18-30 or 35, depending on Citizenship. This option allows individuals to travel and work in New Zealand for up to 12 months, or 23 months if they’re from the UK or Canada.

Resident visas:

• Resident visas allow individuals to live and work in New Zealand indefinitely and access most of the nation’s publicly funded services.
• The ‘Skilled Migrant Category’ uses a points system based on factors such as age, work experience, qualifications, and an offer of skilled employment to dictate eligibility.
• Another option is the Residence from Work visa. Once an individual has held a Work to Residence visa for at least 24 months, they may be eligible to apply.
• Applicants must be aged 55 or under to apply for these resident visas.

Other visas:

• There are several other visas in New Zealand which are available in specific situations. Visit Immigration New Zealand's website for the full list.

Cultural Information

New Zealand has a unique culture which is influenced by European and Māori customs. Tongans, Samoans, and other Pacific peoples make up a large portion of New Zealand’s population, these groups generally follow more traditional customs.

Sport is a large part of New Zealand’s culture, particularly rugby, which is played by both men’s and women’s teams. The predominant language in New Zealand is English, although Māori, English, and New Zealand Sign Language are all official languages.

The population is mostly Christian, however about one-third of the population do not claim any religious affiliation. A broad variety of other religious groups can also be found throughout the country.

Impacts from COVID-19

New Zealand adopted a range of measures to prevent the spread of COVID-19. During one of the nation’s lockdowns, a study showed that 89% of New Zealand’s population wanted remote working to continue in some form after the pandemic. Since the pandemic, around the same number of employees had returned to the workplace. Despite this, the nation still saw vast increases in remote working practices.

Around 95% of the eligible population have also had two doses of a vaccine, and New Zealand has managed to return to normal following its restrictions.