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Hiring Employees Guide — PAYE, KiwiSaver, and Employer Obligations in NZ

the employer obligations when hiring employees in New Zealand. The guide covers the PAYE deduction and the IRD filing, the KiwiSaver employer contributions at 3%, the employment agreement requirements, and the annual reporting obligations.

PAYE and KiwiSaver Obligations

When hiring the employees, the employer must: (a) register as the employer with the IRD, (b) deduct the PAYE from the employee's salary or wages using the correct tax code, (c) deduct the KiwiSaver employee contributions at the 3%, 4%, 6%, 8%, or 10% rate as elected by the employee, and (d) pay the KiwiSaver employer contribution at the minimum 3% of the gross salary. The employer must also deduct the ACC earner levy (1.53% for the 2025-26 year) through the PAYE system. The PAYE and the KiwiSaver deductions are reported to the IRD through the employment information (the EI) each pay period. See our PAYE Guide → and the KiwiSaver Employer Guide → for the detailed rules.

Employment Agreements and Records

The employer must provide the written employment agreement within the first 30 days of the employment. The agreement must include: the job description, the hours of work, the pay rate, the leave entitlements, and the termination terms. The employer must keep the accurate wage and the time records, the holiday and the leave records, and the employment agreement copies. The minimum wage for the 2025-26 is $23.15 per hour for the adults (the 18+). The employer must also file the annual schedules and the end-of-year certificates with the IRD. See our Payroll Guide → for the full payroll compliance rules.