Guide
ACC levies for employers: what the work levy costs
Updated
ACC replaces employers' liability insurance in New Zealand: no-fault cover for work injuries, funded by a levy on your payroll. The average rate is modest; the industry spread is not.
How the work levy is calculated
ACC invoices employers annually for the Work levy: your employees' liable earnings, divided by 100, multiplied by your levy rate. The rate comes from your business's classification unit, which groups businesses by the risk of their actual activity (acc.co.nz: for business). For 2025/26 the average work levy rate is about $0.63 per $100 of liable earnings, but office-based classifications sit far below that and high-risk sectors such as construction and forestry sit well above it; check the rate on your ACC invoice rather than budgeting on the average.
- Liable earnings are capped: earnings above the annual maximum per employee (about $152,790 for 2025/26; verify with ACC) attract no levy.
- A small Working Safer levy (about $0.08 per $100) is collected with the work levy on behalf of WorkSafe NZ.
- Experience rating can move an employer's rate up or down based on claims history.
- Invoices are issued after year-end once actual payroll is filed with Inland Revenue, so the levy arrives in arrears; accrue for it monthly.
What it costs at the average rate
| Payroll | Work levy (average rate) |
|---|---|
| $70,000 (one hire) | $441 |
| $350,000 (five staff) | $2,205 |
| $1,000,000 | $6,300 |
The same payroll in a high-risk classification can cost several times these figures, and in a low-risk office classification a fraction of them. The calculator lets you replace the average with your own rate, which is the number that matters.
Employees also pay an ACC earners' levy through PAYE, that is their cost, not yours. This page states the 2025/26 position; ACC consults on and resets levy rates in cycles, so verify current rates on acc.co.nz before budgeting.