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 year | Earners' levy (%) | Maximum income used (*) | Maximum levy payable |
|---|---|---|---|
| 1 April 2020 to 31 March 2021 | 1.39% | $130,911 | $1,819.66 |
| 1 April 2019 to 31 March 2020 | 1.39% | $128,470 | $1,785.73 |
| 1 April 2018 to 31 March 2019 | 1.39% | $126,286 | $1,755.37 |
| 1 April 2017 to 31 March 2018 | 1.39% | $124,053 | $1,724.33 |
| 1 April 2016 to 31 March 2017 | 1.39% | $122,063 | $1,696.67 |
| 1 April 2015 to 31 March 2016 | 1.45% | $120,070 | $1,741.01 |
| 1 April 2014 to 31 March 2015 | 1.45% | $118,191 | $1,713.76 |
| 1 April 2013 to 31 March 2014 | 1.70% | $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%.