What is the true cost of employing someone in NZ?

Beyond the gross salary, employers pay ACC levies and must contribute at least 3% to KiwiSaver for employees who have opted in. They also need to factor in costs for annual leave (4 weeks), sick leave (10 days), public holidays, and any other benefits.

What ACC levies do NZ employers pay?

Employers pay the ACC Work Levy, which varies by industry risk classification. The levy is charged per $100 of liable earnings. Rates are set annually by ACC and published on their website.

Employer Cost Calculator

Calculate the true cost of employing someone in New Zealand

Employer Cost Calculator

Employee gross salary

$ /year

Employer KiwiSaver contribution

Employers must contribute at least 3% if the employee is enrolled in KiwiSaver. Select 0% if the employee hasn't opted in.

Total employment cost

per year

Overhead: ( above salary)

Cost breakdown

Total employment cost

Employment cost by period

Period	Total cost
Annual
Monthly
Fortnightly
Weekly

Contractor comparison

To match this total employment cost with a contractor, you'd need to pay:

Based on 46 working weeks. Contractors have no leave obligations but set their own rate to cover holidays and expenses.

PAYE Calculator Contractor Calculator Reverse Calculator

These calculations are provided as a guide. Actual costs may vary based on industry, employee benefits, and collective agreements.

ACC levy uses the earners' levy rate (1.67%). Work levy varies by industry. Public holidays based on 12 statutory days.

True Cost of Employment in NZ

Hiring an employee costs more than just their salary. This calculator shows the full picture including mandatory employer contributions, paid leave provisions, and optional budgets.

Employer KiwiSaver — minimum 3% contribution on top of salary

ACC employer levy — covers workplace accident insurance

Paid leave — 4 weeks annual leave, 12 public holidays, 10 sick days

Contractor comparison — equivalent hourly rate to match total cost