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New Zealand — Business: Hiring Employees

From 1 April 2026 the New Zealand adult minimum wage is NZ$23.95 an hour (NZ$958 for a 40-hour week) and the starting-out and training rate is NZ$19.16 an hour (NZ$766.40 for 40 hours), before tax. A wage increase is a variation to the employment agreement, so employers should confirm it in writing. From their first full pay after 1 April 2026 employers must contribute 3.5% of an eligible employee's gross pay to KiwiSaver, up from 3%, with a further rise to 4% scheduled for 1 April 2028. Employer ACC levies are not covered here.

VerifiedGovernment / official sourceEmployment New Zealand; Inland Revenue (KiwiSaver)Last reviewed: 2026-10-23

Why this matters

A relocating business owner should care about the hiring process in New Zealand as it directly affects the ability to operate and grow their business in the country.

Key facts

  • The adult minimum wage is NZ$23.95 an hour from 1 April 2026; the starting-out and training rate is NZ$19.16.
  • A wage increase is a variation to the employment agreement; confirm it in writing.
  • Employer KiwiSaver contribution is 3.5% of gross pay from the first full pay after 1 April 2026, rising to 4% from 1 April 2028.
  • Employer ACC levies are not covered here.

Steps

  1. Step 1: Determine the type of visa and work arrangement — Businesses must identify the type of visa required for their employees, such as a work visa, student visa, or entrepreneur visa. They must also determine the type of work arrangement, including whether employees will be full-time, part-time, or contractors.
  2. Step 2: Register with the New Zealand Companies Office and obtain an IRD number — Businesses must register with the New Zealand Companies Office and obtain an IRD number for tax purposes. This will also involve registering for Goods and Services Tax (GST) if applicable.
  3. Step 3: Comply with employment laws and regulations — Employers must comply with employment laws, including the Employment Relations Act 2000 and the Holidays Act 2003. This includes providing a written employment agreement, paying minimum wage, and ensuring fair treatment of employees.

Costs

  • Adult minimum wage (from 1 April 2026): NZ$23.95 per hour
  • Employer KiwiSaver contribution (from 1 April 2026): 3.5% of gross pay

Common mistakes

  • Using the old 3% KiwiSaver rate — it is 3.5% from April 2026.

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