Holiday Pay Calculator NZ
Work out your holiday pay in New Zealand: annual leave pay, 8% pay-as-you-go holiday pay for casuals, final pay when you leave a job, and public holiday pay. Based on the Holidays Act 2003.
Holiday Pay Calculator NZ
Work out casual 8% holiday pay, annual holidays pay, holiday pay on your final pay, and public holiday pay under the Holidays Act 2003.
Genuine casual employees, and some short fixed-term employees, can have holiday pay added to each pay at 8% of gross earnings, if their employment agreement clearly says so.
When you take annual holidays you are paid at the greater of your ordinary weekly pay and your average weekly earnings over the last 12 months.
When employment ends you are paid any annual holidays you are owed, plus 8% of your gross earnings since your last anniversary (or your start date), less annual holidays already paid for that time.
If you work on a public holiday you are paid at least time and a half for the hours worked, and get an alternative holiday if it was a day you would normally work. If you do not work, you are paid your relevant daily pay when it falls on a day you would normally work.
Breakdown
How holiday pay works in New Zealand?
- Annual holidays: after each 12 months of continuous employment, employees are entitled to at least four weeks of paid annual holidays.
- Pay rate for annual holidays: the greater of ordinary weekly pay or average weekly earnings.
- 8% pay-as-you-go: only allowed for genuine casual employees and some short fixed-term employees, and only if the employment agreement says so clearly. It is added to each pay instead of building up leave.
- When you finish a job: you are paid out any unused annual holidays, and 8% of your gross earnings since your last anniversary, less any leave already taken for that period.
- Public holidays: New Zealand has 12 public holidays, including Matariki. They are separate from your four weeks.
- Sick leave: 10 days a year after six months of employment.
Worked example: casual 8% holiday pay
|
Step |
Amount |
|---|---|
|
Gross pay for the week |
$1,000.00 |
|
Holiday pay (8%) |
$80.00 |
|
Total pay |
$1,080.00 |
Worked example: annual holidays pay
|
Step |
Amount |
|---|---|
|
Ordinary weekly pay (OWP) |
$1,200.00 |
|
Gross earnings in last 12 months |
$64,000.00 |
|
Average weekly earnings (AWE) = $64,000 ÷ 52 |
$1,230.77 |
|
Rate used (the greater of the two) |
$1,230.77 |
|
Pay for 2 weeks of leave |
$2,461.54 |
Worked example: final pay
|
Step |
Amount |
|---|---|
|
Gross earnings since last anniversary |
$30,000.00 |
|
Holiday pay owing (8%) |
$2,400.00 |
|
Less annual leave already paid for this period |
$0.00 |
|
Holiday pay on final pay |
$2,400.00 |
Worked example: working on a public holiday
|
Step |
Amount |
|---|---|
|
Hourly rate |
$30.00 |
|
Hours worked |
8 |
|
Pay at time and a half ($30 × 1.5 × 8) |
$360.00 |
|
Alternative holiday |
1 paid day (if it was a normal working day) |
Is holiday pay taxed?
Yes. Holiday pay is taxable income, and KiwiSaver and ACC apply to it as with normal pay. How it is taxed depends on how it is paid: annual leave taken during employment is taxed like regular wages, while a lump sum on final pay can fall under IRD’s extra pay rules. Check IRD for your situation.
Frequently asked questions
Related calculators and guides
Disclaimer:
This calculator gives an estimate based on the Holidays Act 2003 and is not legal or tax advice. Your entitlement can depend on your employment agreement and circumstances. Check Employment New Zealand (employment.govt.nz) and Inland Revenue, or ask your employer or a professional.
