True Cost of Employment in NZ
Most small businesses underestimate the true cost of an employee. On top of gross salary, you must account for:
Employer Obligations (2025)
| Cost | Rate |
|---|---|
| KiwiSaver (employer contribution) | Minimum 3% of gross |
| ACC employer levy | $0.67–$2.80 per $100 wages (varies by industry) |
| Holiday pay | 8% of gross (or 4 weeks leave) |
| Statutory holidays | 12 days/yr paid |
ACC Levy Rates by Industry (2024–25)
Construction and trades pay significantly higher ACC levies than office work. The NZ "work levy" is based on your ANZSIC industry code:
- Painting / decorating: $1.18 per $100
- Plumbing / electrical: $0.87 per $100
- Roofing / scaffolding: $2.50+ per $100
- General construction: $1.60 per $100
ACC levies are updated annually. Check the ACC website for current rates.
Rule of Thumb
Budget 20–30% on top of gross salary for the true employer cost. A $65,000/yr employee typically costs $78,000–$85,000 all-in.
See our Overtime Calculator for weekly pay breakdowns.