ACC Earners Levy

What is ACC Earners' Levy?

ACC Earners' Levy is a premium paid by NZ workers to cover the cost of non-work related injuries. It is collected by Inland Revenue on behalf of the Accident Compensation Corporation (ACC). For most people ACC Earners' Levy will be automatically deducted from their pay and remited to IRD by their employer.

Who pays ACC Earners' Levy?

ACC Earners' Levy is payable on most income in New Zealand, up to an agreed maximum yearly amount. Income liable for the levy includes includes things such as:

  • wages
  • salaries
  • back pay and holiday pay
  • overtime pay
  • long-service pay
  • bonuses or gratuities
  • taxable allowances
  • shareholder-employee salaries from which PAYE is deducted
  • salaries to partners in a partnership

Historical Earners' Levy Rates

Income yearEarners' levy (%)Maximum income used (*)Maximum levy payable
1 April 2020 to 31 March 20211.39%$130,911$1,819.66
1 April 2019 to 31 March 20201.39%$128,470$1,785.73
1 April 2018 to 31 March 20191.39%$126,286$1,755.37
1 April 2017 to 31 March 20181.39%$124,053$1,724.33
1 April 2016 to 31 March 20171.39%$122,063$1,696.67
1 April 2015 to 31 March 20161.45%$120,070$1,741.01
1 April 2014 to 31 March 20151.45%$118,191$1,713.76
1 April 2013 to 31 March 20141.70%$116,089$1,973.51
(*) Income earned over the Maximum income threshold is not subject to earners' levy.

ACC Earners Levy Articles

Employees to save 17% on ACC levies from 1 April 2014

Earners' levy rates are dropping to $1.45 per $100 of liable earnings from 1 April 2014. The Earners' levy income cap is also being adjusted.

ACC earners' levy reduces to 1.7% on 1 April 2012

NZ Salary and wage earners will receive more net pay from the 1st of April as the ACC earners' levy drops to 1.70% from 2.04%.