Guide

ACC levies for employers: what the work levy costs

Updated 2026-08-15

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.

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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: understanding levies). For 2026/27 the average work levy rate is $0.69 per $100 of liable earnings (acc.co.nz: levy results), up from $0.66 in 2025/26 and rising to $0.72 in 2027/28, but office-based classifications sit far below the average 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 $156,641 per employee for the year from 1 April 2026 attract no levy (ird.govt.nz).
A Working Safer levy of $0.08 per $100 of liable payroll is collected with the work levy on behalf of WorkSafe New Zealand (acc.co.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

ACC work levy at the 2026/27 average rate of $0.69 per $100
Payroll	Work levy (average rate)
$70,000 (one hire)	$483
$350,000 (five staff)	$2,415
$1,000,000	$6,900

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 2026/27 position; ACC resets levy rates in three-year cycles, so verify current rates on acc.co.nz before budgeting.

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Questions, answered directly

How much is the ACC levy for employers?

The 2026/27 average work levy is $0.69 per $100 of liable earnings, about $483 a year on a $70,000 salary. Your actual rate depends on your industry classification and claims history, and can be several times higher or lower than the average.

Is ACC instead of workers' compensation insurance?

Effectively yes. ACC provides no-fault cover for work injuries for all employees, funded by the employer work levy, so New Zealand employers do not buy separate workers' compensation or employers' liability insurance for injury cover.

Sources

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