New Zealand: stunning views, sheep, and hobbits. But it also offers a vibrant culture and a talented workforce. Whether you're looking to bring on your first team member in Auckland or build out a distributed crew across the North and South Islands, one thing's clear-compliance is non-negotiable.
Read on for everything you need to confidently hire and pay employees in New Zealand without getting tripped up with over local laws.
Employment laws and hiring requirements
Hiring in New Zealand comes with a well-defined legal framework. It's not overly complex, but it does require precision. You'll want to get the details right from the start to avoid headaches later.
Start with the basics:
- Define the type of role: permanent, fixed-term, or casual.
- Create a written employment agreement.
- Register with Inland Revenue (IRD) so you can pay your employees properly.
- If hiring from abroad, advertise the role locally before moving ahead with foreign applicants, and always double-check work eligibility and visa requirements.
Employment agreements
In New Zealand, every employee must have a written employment agreement before they start. These agreements set expectations like pay structure, hours and breaks, leave policies, and notice periods.
Check out this sample employment agreement to see what's legally required, and what's just good practice. Not sure what should be in your contract? Read our glossary entry on Employment Agreements.
How to register as an employer
Before you can run payroll, you need to register with the Inland Revenue Department (IRD). You'll need an IRD number for your business and registration for PAYE (Pay-As-You-Earn tax). Then set up payday filing through IRD's myIR system.
Hiring foreign workers?
To hire a foreign worker, you'll typically need to advertise the job locally, become an accredited employer if you're applying for an AEWV, and ensure your candidate meets health, skills, and character checks.
The New Zealand Immigration site has the information you need but reading Work Authorization in New Zealand: A Guide for U.S. Professionals will make it even easier.
Pay and compensation
Pay expectations in New Zealand are high and so are the minimum standards. As of April 2025, the minimum wage is NZD $23.15/hour (US$13.75). Whether you're offering a salary, hourly rate, or commission-based pay, the total must still meet that threshold.
Here's what typical annual pay looks like:
- Administrative roles: NZD $50,000-$65,000 (US$29,500-$38,350)
- Software developers: NZD $80,000-$120,000 (US$47,200-$70,800)
- Sales reps: NZD $55,000-$85,000 (US$32,450-$50,150)
Along with base pay, you'll also need to factor in leave and benefits. Employees are entitled to four weeks of paid annual leave, 11 paid public holidays, and 10 days of sick leave after six months. Paid parental leave is government-funded but still part of the overall employment package.
Managing payroll and staying compliant
New Zealand's PAYE system puts the employer in charge of deducting and submitting income tax. You're also responsible for KiwiSaver contributions (typically 3%) and other deductions like student loans or child support when applicable.
Monthly payroll includes calculating earnings, processing tax and KiwiSaver deductions, submitting filings to IRD via myIR, and issuing payslips. If you're working with a local team, tools like Smartly can handle the basics. But if you're hiring globally, a global payroll provider can simplify things greatly.
Onboarding and what happens after day one
A structured onboarding process helps employees ramp up smoothly, and it keeps you compliant. Most employers include a 90-day trial period in their agreements. Just remember: even during this time, employees have legal protections. Be clear about how performance will be evaluated and what kind of support they'll get.
Fair treatment still applies during probation, so take a moment to review the dismissal rules before you finalize your onboarding plan.
Keep your employee records up to date. That includes agreements, payroll details, leave balances, and performance history. Whether you're using software or spreadsheets, you want clarity for you and your team.
For a deeper dive into global onboarding best practices, read Employee Onboarding Best Practices for Remote, Virtual, and Global Onboarding.
Tips and resources for a successful application
Hiring in a new country is rarely simple. Your best bet? Prepare early. Use government checklists, lean on templates, and reach out to IRD when questions come up. And if you're not sure whether you're on the right track, there's help available in the form of employers of record.
What is an employer of record?
An employer of record acts as the legal employer in New Zealand so you don't have to set up an entity. You manage day-to-day work, but the EOR handles everything else: visa sponsorship, compliance, payroll, KiwiSaver contributions, and tax filings. With local experts, you don't have to learn the ins and outs of New Zealand law-you just have to find the talent you want.
Final thoughts
Hiring in New Zealand doesn't need to feel overwhelming. Yes, there's structure, but it's structure you can work with. Focus on getting the agreement right, registering with IRD, choosing the right payroll setup, and building a solid onboarding process. If you can check those boxes, you're on the right track.
And if you'd rather not go it alone? That's what Pebl is for.
How Pebl can help
So you want to do things the easy way? Good choice.
If you want to hire a Kiwi, there's no easier way than our employer of record service in New Zealand. We take the legal guesswork out of it by handling visa sponsorship, payroll, compliance, and benefits. When you find that elite engineer or perfect programmer you can hire them in days not months and support them with our local experts in New Zealand and in 185+ countries worldwide.
Get in touch to learn more.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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