Holiday Pay Calculator NZ 2025: Complete Guide to Annual Leave and Public Holiday Rates
Ultimate Salary Calculator Team
Our content is written and reviewed by finance and tax enthusiasts to ensure accuracy.
Understanding holiday pay calculations in New Zealand is crucial for both employees and employers. With complex rules around annual leave, public holidays, and different payment methods, knowing exactly what you're entitled to helps ensure you receive correct compensation and can budget effectively for time off work.
New Zealand Holiday Pay Overview 2025
Types of Holiday Pay
Annual holidays (annual leave)
- • 4 weeks paid leave after 12 months continuous employment
- • Paid at higher of ordinary weekly pay or average weekly earnings
- • Can be taken in advance in some circumstances
Public holidays
- • 11 public holidays annually in New Zealand
- • Paid at time-and-a-half if you work, plus alternative day
- • Full day's pay if you don't work (if otherwise would have worked)
Key Payment Principles
Ordinary Weekly Pay (OWP)
- • What you normally earn in a week
- • Includes regular overtime, allowances, commissions
- • Calculated at start of holiday period
Average Weekly Earnings (AWE)
- • Your gross earnings over last 52 weeks ÷ 52
- • Includes all payments from employer
- • Accounts for variable income and overtime
The Greater Rule
Holiday pay must be the higher of OWP or AWE. This protects workers with variable or seasonal income by ensuring they receive fair compensation based on their actual earnings pattern.
Annual Leave Calculations
Standard Full-Time Employee Examples
Example 1: Regular Salary Worker
Example 2: Salary + Regular Overtime
Example 3: Variable Income Worker
Part-Time and Casual Employee Calculations
Part-Time Employee
Casual Employee (8% Method)
Only applies to genuine casual employment with irregular hours
Public Holiday Pay Calculations
Working on Public Holidays
Time-and-a-Half + Alternative Day
Payment Rules
- • Must be paid 1.5 times normal rate for hours worked
- • Plus entitled to alternative day off
- • Alternative day paid at ordinary rate
Example Calculation
- • Normal hourly rate: $30/hour
- • Public holiday rate: $45/hour (1.5x)
- • 8-hour shift: $360 + alternative day
- • Alternative day value: $240
- • Total value: $600
Not Working on Public Holidays
"Otherwise Working Day" Rule
- • Paid full day if you would normally work that day
- • No payment if you wouldn't normally work
Example Scenarios
- • Full-time Mon-Fri worker: Paid for public holiday on Tuesday
- • Part-time Tue/Thu worker: Paid only if public holiday falls Tue/Thu
- • Shift worker: Depends on roster pattern
Complex Holiday Pay Scenarios
Seasonal Workers
Example: Fruit Picker (Seasonal Variations)
If leave taken during peak season: Use $1,200 OWP (higher than $708 AWE)
If leave taken during off season: Use $708 AWE (higher than $400 OWP)
Commission-Based Workers
Example: Sales Representative
Common Holiday Pay Mistakes
Employee Mistakes
Employer Mistakes
Using Holiday Pay Calculators
Information You Need
For Accurate Calculations
Basic Information
- • Employment start date
- • Current salary/wage rate
- • Hours worked per week
- • Leave already taken
Detailed Information
- • Overtime and allowances (regular vs irregular)
- • Variable income details
- • Commission or bonus payments
- • Shift penalties and on-call payments
Key Calculator Functions
1. Annual Leave Entitlement
- • How many weeks owed
- • Payment rate calculation
- • Cash value of unused leave
2. Public Holiday Pay
- • Working vs not working scenarios
- • Time-and-a-half calculations
- • Alternative day entitlements
3. Final Pay Calculator
- • Total leave owing
- • Pro-rata calculations
- • 8% minimum verification
Frequently Asked Questions
Q: Can my employer pay me 8% instead of giving me annual leave?
A: Only for genuine casual employees where this is agreed in the employment contract.
Q: What if my income varies a lot - which rate do I get?
A: You get the higher of your ordinary weekly pay or your average weekly earnings over the last 52 weeks.
Q: Do I get paid more if I work on a public holiday?
A: Yes, you get time-and-a-half for hours worked plus an alternative day off.
Q: What happens to my holiday pay if I quit?
A: You must be paid for all unused annual leave plus 8% of earnings since your last anniversary date.
Conclusion
Holiday pay calculations in New Zealand involve complex rules designed to ensure fair compensation for time off. Understanding whether you should be paid ordinary weekly pay or average weekly earnings, and knowing your public holiday entitlements, helps ensure you receive correct payment and can plan your finances effectively.
Regular use of holiday pay calculators helps verify your entitlements and plan for both scheduled leave and final employment payments. Keep detailed records of your income to support accurate calculations.