What does an employee really cost?
Their wage is just the start. Add employer KiwiSaver, the ACC levy and paid leave, and see your true cost per hour actually worked — the number that matters for pricing and rosters.
NZ adult minimum wage is $23.95 (from 1 April 2026).
Min 3.5% from 1 Apr 2026.
Varies by industry.
Tools, training, insurance…
Leave + public holidays.
True cost to employ
$64,977 /year
That’s a 4.1% on-cost loading over gross wages.
Cost per hour actually worked
$35.47 /productive hr
You schedule $31.24/hr, but after leave and public holidays each hour actually worked costs more. Untracked or rounded-up hours come straight off this.
An estimate for guidance only — not tax or payroll advice. Defaults: employer KiwiSaver 3.5%, ACC work levy 0.63% (industry-dependent), 4 weeks annual leave + 11 public holidays. Adjust every field to your situation.
What goes into the true cost
Four things turn a wage into what you actually spend to employ someone in New Zealand.
Employer KiwiSaver
On top of wages you pay employer KiwiSaver contributions — a minimum of 3.5% of gross pay from 1 April 2026 for eligible employees.
ACC work levy
Employers pay an ACC Work levy on payroll to cover workplace injuries. The rate depends on your industry classification, so it varies business to business.
Paid time not worked
You pay for annual leave (4 weeks), 11 public holidays and sick leave. Spread across the year, that lifts the real cost of every hour actually worked.
Other on-costs
Tools, uniforms, training, phones, software and liability insurance are all part of the true cost of employing someone — not just their hourly rate.
Labour cost questions, answered
- How much does an employee really cost in New Zealand?
- More than their wage. On top of gross pay you add employer KiwiSaver (minimum 3.5% from 1 April 2026), the ACC work levy (which varies by industry), and paid time not worked such as annual leave and public holidays — plus any tools, training or insurance. For many NZ roles the true cost runs roughly 10–20% above gross wages before overheads.
- What is included in the “true cost” this calculator shows?
- Gross wages (hourly rate × hours, or annual salary) plus employer KiwiSaver, the ACC work levy, and any other annual on-costs you enter. It then divides that total by the hours actually worked — after leave and public holidays — to show your cost per productive hour.
- What is “cost per productive hour”?
- It’s the true annual cost divided by the hours an employee actually works once you remove paid leave and public holidays. Because you pay for those days off, every hour actually worked costs more than the headline hourly rate — and untracked or rounded-up hours make it worse.
- Is the employer KiwiSaver rate really 3.5%?
- The compulsory employer contribution minimum rises to 3.5% of gross pay from 1 April 2026 (increasing further to 4% from 1 April 2028), for employees who are KiwiSaver members and eligible for contributions. You can change the rate in the calculator to match your situation.
- Does this replace payroll or tax advice?
- No. It’s a guidance estimate to help you understand labour costs. ACC levies, KiwiSaver eligibility and leave entitlements have specifics that depend on your business — check with your accountant or payroll provider for exact figures.
You’re paying for those hours — so track them
Clockie captures every hour actually worked on a shared tablet — PIN or face verification, offline sync, and timesheets straight to Xero and Crystal. No more rounded-up guesses.
Start your free trial14-day free trial · no credit card