New Zealand

Mandatory employee benefits in New Zealand

Several key employee benefits in New Zealand are mandatory or required by law:

• Retirement – KiwiSaver: KiwiSaver is a voluntary retirement savings scheme available to employees aged 16-65. As of July 2025, employers must contribute at least 3% of an employee’s gross wage or salary (subject to ESCT) to their KiwiSaver account, with phased increases: the minimum employer and employee contributions rise to 3.5% from April 1, 2026, and to 4% from April 1, 2028. Employer contributions are now also mandatory for employees aged 16 and 17. Employer and employee contributions may be temporarily reduced to 3% if needed for financial reasons, but an application is required. Government co-contributions now cap at $260.72/year (for the 2025/26 year and onward, formerly $521.43), with high-income earners ($180,000+) no longer eligible. Employees aged 16 and 17 are now eligible for government matching, provided they meet other criteria.
• Accident Compensation Scheme: New Zealand provides accident insurance cover for accidental injuries to all residents, citizens, and temporary visitors through the Accident Compensation Corporation (ACC). This “no-fault scheme” covers treatment and rehabilitation costs, regardless of who caused the accident or injury.
• Pay Equity and Equal Pay: The Equal Pay Amendment Act 2025 tightened pay equity rules. Claims for pay equity must now show that the workforce is at least 70% female over 10 consecutive years (previously 60% at any time). Employers can now challenge claims more easily if comparators are not substantially similar roles, and same-employer comparator roles take priority.

Note: Statutory benefit rates and government support thresholds (Accommodation Supplement, Disability Allowance, etc.) have been increased from 1 April 2025 to reflect cost-of-living changes.

Supplemental employee benefits in New Zealand

• Group Life/Total Permanent Disability (TPD) Insurance: Particularly prevalent in competitive sectors, group life/TPD insurance is based on a multiple of salary (upper quartile: 3-4× annual salary) and is typically 100% company funded.
• Group Income Protection (Salary Continuance): Income protection plans commonly provide 75% of annual base salary in the event of illness or injury. Top-tier plans feature a 30-day waiting period and up to a 5-year or age 65 benefit period, often fully company-funded.
• Group Private Medical Insurance: While all citizens and residents have access to New Zealand’s public health system, many employers in competitive sectors offer private health insurance—based hospital plans with optional modules (serious condition cover, dental, optical, GP). Standard funding models: 100% cover for employees and 75% for families; upper quartile plans fund 100% for both.
• Holistic Wellbeing Solutions: Employers increasingly offer physical, mental, financial, and social wellbeing programs—ranging from health checks to digital care platforms—often tailored to company needs.
• Employee Assistance Program (EAP): Structured EAPs are standard, now often delivered as digital 24/7 support with advanced analytics. Other common programs include annual flu shots, skin checks, mental health seminars, and financial well-being support.
• Employee Share Schemes: From April 2025, tax-exempt thresholds for these schemes have increased to account for inflation, enabling larger share allocations and larger permissible discounts for employees.

Common employee perks

• Learning and development programs: Continued education is widely supported, with a median of 5 days paid and 5 days unpaid study leave per year. Unlimited unpaid leave for development is rare (about 4%).
• Additional leave options: Some organizations now offer charity leave, celebration leave, additional holiday entitlements, and expanded domestic violence/bereavement leave. Still, a majority stick to statutory minimums, with only about 10% offering extra paid leave.
• Extended parental leave: Most employers meet statutory paid parental leave requirements, but about 10% provide extended paid leave and more inclusive options for primary/secondary caregivers.
• Flexible working arrangements: Hybrid and remote work policies are now standard, supporting a blend of in-office and at-home work, giving employees more autonomy.
• Business travel insurance: Employer-provided travel insurance—sometimes including leisure travel—is common where travel is a regular business requirement.
• Lunch/beverages allowance: A small but growing number of companies offer onsite lunches (often Monday-Thursday) to encourage office attendance.
• Mobile phones: Approximately 97% of companies provide mobile phones for staff, especially for client-facing roles.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.