The Real Cost of Hiring a Tradie in NZ
The salary on the employment agreement is just the starting point. By the time you add KiwiSaver, ESCT, ACC, and statutory leave, the true cost of employment is typically 18–28% above the gross wage.
What Gets Added on Top
KiwiSaver (employer contribution) — minimum 3.5% of gross from April 2026. This money goes to the employee's KiwiSaver fund and is a direct cost to your business.
ESCT (Employer Superannuation Contribution Tax) — tax on your KiwiSaver contribution, ranging from 10.5% to 33% depending on the employee's income. Often overlooked.
ACC employer levy — charged by ACC on top of the employee's earners' levy. Rate varies by industry classification.
Annual leave — 4 weeks minimum under the Holidays Act 2003. You're paying this even when the employee is not working.
Sick leave — 10 days per year after 6 months, increasing to 20 days for longer-serving employees.
Public holidays — 11 public holidays per year, all paid at ordinary day's pay.
Minimum Wage in 2026
The adult minimum wage from 1 April 2026 is $23.50/hour ($48,880/year for 40 hours). Starting-out and training wages are 80% of this ($18.80/hour).
See our apprentice wage calculator for trade-specific apprenticeship rates.