2026/27 levy year

Employee cost calculator: what does a hire really cost in NZ?

Salary is most of it, but not all. Add the 3.5% minimum KiwiSaver employer contribution and the ACC work levy (an average of $0.69 per $100 of pay in 2026/27), and a $70,000 hire costs about $72,933 a year. Enter a salary to see the full figure, itemised.

Gross annual salary or wages

KiwiSaver employer contribution

The legal minimum is 3.5% of gross pay from 1 April 2026, rising to 4% from 1 April 2028. If an employee has an approved temporary rate reduction you may match at 3%. Check ird.govt.nz for the rate that applies to your staff.

ACC work levy per $100 of pay

The 2026/27 average work levy rate. Your industry classification rate can be far lower (office work) or higher (construction, forestry); it is on your ACC invoice.

Employment type

Other annual costs (benefits, equipment, insurance)

True annual cost

$72,933

Salary + KiwiSaver + ACC work levy + holiday pay (casual only) + other costs. See assumptions.

Have an accountant check these numbers

KiwiSaver employer contribution	$2,450
ACC work levy (at your rate)	$483
On-cost above salary	4.2%
Cost per month	$6,078

True employer cost table, New Zealand 2026/27

Last updated 2026-08-15

Salary, the 3.5% minimum KiwiSaver employer contribution, and the ACC work levy at the 2026/27 average of $0.69 per $100 of liable earnings: the statutory lines of employing a permanent staff member in New Zealand. Benefits, FBT and leave cover excluded.

Computed with the calculator's exact formulas: KiwiSaver at the 3.5% employer minimum in force from 1 April 2026; ACC work levy at the published 2026/27 average work levy rate of $0.69 per $100 of liable earnings (industry rates vary; liable earnings capped at $156,641 per employee).

True employer cost table, New Zealand 2026/27
Gross salary	KiwiSaver (3.5%)	ACC work levy (avg)	True annual cost	On-cost
$50,000	$1,750	$345	$52,095	4.2%
$60,000	$2,100	$414	$62,514	4.2%
$70,000	$2,450	$483	$72,933	4.2%
$80,000	$2,800	$552	$83,352	4.2%
$100,000	$3,500	$690	$104,190	4.2%
$120,000	$4,200	$828	$125,028	4.2%

Employing someone on $70,000 costs a New Zealand employer about $72,933 a year in 2026/27 at the statutory minimums, a 4.2% on-cost before benefits or overheads.
New Zealand's statutory employment on-cost (3.5% KiwiSaver plus the 2026/27 average ACC work levy of $0.69 per $100) is about 4.2% of salary.
A casual employee paid 8% pay-as-you-go holiday pay costs about 12.2% above the base wage once KiwiSaver and the average ACC levy are added: $78,533 on $70,000 of wages.

Cite this page

“True employer cost table, New Zealand 2026/27”, Employee Cost Calculator NZ, https://employeecostcalculator.co.nz/ (updated 2026-08-15). Computed with the calculator's exact formulas: KiwiSaver at the 3.5% employer minimum in force from 1 April 2026; ACC work levy at the published 2026/27 average work levy rate of $0.69 per $100 of liable earnings (industry rates vary; liable earnings capped at $156,641 per employee).

What this is based on

KiwiSaver employer contribution at your chosen rate on gross pay, for an employee who is a KiwiSaver member. The legal minimum is 3.5% of gross salary or wages from 1 April 2026 (ird.govt.nz: employer contributions to KiwiSaver), rising to 4% from 1 April 2028 (ird.govt.nz: KiwiSaver changes). An employee may apply for a temporary rate reduction to keep contributing at 3% for 3 to 12 months, and the employer may then match at 3%. ESCT (employer superannuation contribution tax) is deducted from the contribution, so the employer's cost equals the gross contribution shown.
ACC work levy at your industry rate per $100 of liable earnings. The default is the 2026/27 average work levy rate of $0.69 per $100 (acc.co.nz: levy results); actual rates vary sharply by industry classification, from a few cents for office work to several dollars for high-risk sectors. Liable earnings are capped at $156,641 per employee for the year from 1 April 2026 (ird.govt.nz). A Working Safer levy of $0.08 per $100 is collected alongside the work levy for WorkSafe New Zealand (acc.co.nz) and is not itemised separately here.
Holiday pay: a permanent employee's 4 weeks of annual leave is part of the salary you enter, not an extra cost line. The 8% pay-as-you-go option applies to genuine casual or short fixed-term staff paid holiday pay on top of wages (employment.govt.nz: leave and holidays).
New Zealand has no general employer payroll tax on wages: no employer National Insurance or social security equivalent. PAYE is withheld from the employee's pay and costs the employer nothing beyond administration.
Fringe benefit tax (FBT) on non-cash benefits (vehicles, discounted goods, some insurance) is excluded; if you provide such benefits, budget FBT separately (ird.govt.nz: employing staff).
Figures are for the 2026/27 levy year and are corrected in place when rates change; verify current rates before budgeting.

Employee Cost Calculator NZ is an independent information site operated by Ellul Solutions Ltd. It is not affiliated with Inland Revenue, ACC, Employment New Zealand or any government body, and nothing here is tax, accounting or employment advice. Figures are estimates built on stated assumptions; confirm them with your accountant or payroll provider before budgeting.

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Straight answers

How much does an employee on $70,000 cost a New Zealand employer?

About $72,933 a year in 2026/27: $70,000 salary, $2,450 minimum KiwiSaver employer contribution (3.5%) and $483 of ACC work levy at the average rate of $0.69 per $100. Benefits, FBT and overheads come on top.

Is there a payroll tax in New Zealand?

No general payroll tax on wages. The employer's statutory costs are the KiwiSaver contribution (3.5% minimum) and ACC levies; PAYE is withheld from the employee's own pay. Fringe benefit tax applies only if you provide non-cash benefits.

What percentage should I add to salary for employer costs in NZ?

About 4.2% covers the statutory minimums (3.5% KiwiSaver plus the 2026/27 average ACC work levy). Budget 8–15% once leave cover, equipment and overheads are included, and add 8% holiday pay for genuine casual staff.

When do employers pay 8% holiday pay?

For genuine casual employees, and fixed-term staff on agreements shorter than 12 months, holiday pay can be paid as-you-go at 8% of gross wages on top of each pay, if the employment agreement says so. Permanent staff instead accrue 4 weeks of annual leave inside their salary.

Is the ACC levy the same for every employer?

No. The 2026/27 average work levy is $0.69 per $100 of liable earnings, but your rate is set by your industry classification and claims history: office-based businesses pay far less, construction and forestry far more. Use the rate on your ACC invoice in the calculator.

Is the KiwiSaver employer minimum still 3%?

No. The minimum rose from 3% to 3.5% on 1 April 2026 and rises to 4% from 1 April 2028. An employee can apply for a temporary rate reduction to keep contributing at 3%, in which case the employer may match at 3%.

Related guides

Each one cites where its numbers come from.

Sources

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