PEO New Zealand

Professional Employer Organization (PEO)

Employer of Record (EOR) | Remote Work

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World Bank Ease of Doing Business Ranking

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  • DB Rank – 1
  • DB Score – 86.8

Rankings on Doing Business topics – New Zealand

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Topic Scores

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Global PEO in New Zealand

New Zealand stands out as an attractive destination for businesses considering a Professional Employer Organization (PEO) arrangement. With its stable economy, business-friendly regulations, and skilled workforce, New Zealand offers a conducive environment for companies looking to expand their operations. As a PEO country, New Zealand provides streamlined solutions for managing human resources, payroll, and compliance, allowing organizations to focus on their core activities while leaving administrative complexities in capable hands. The country’s commitment to innovation and its strategic location in the Asia-Pacific region further enhance its appeal. Whether seeking to establish a presence or tap into local talent, New Zealand’s PEO services offer a gateway to growth in a vibrant and dynamic market.

What Is a PEO?

A PEO, or Professional Employer Organization, is a company that provides a range of HR and payroll services to small and medium-sized businesses. These services can include employee benefits, payroll, compliance with labor laws, and recruiting and training.

PEOs work by entering into a co-employment agreement with the businesses they serve. In this arrangement, the PEO becomes the employer of record for the business’s employees, taking on responsibilities such as payroll, tax withholding, and employee benefits. The business, however, retains control over its day-to-day operations and the supervision of its employees.

PEOs can help businesses streamline their HR and payroll processes, reduce costs, and free up time and resources to focus on their core business activities. They can also provide access to a range of benefits and resources that small businesses may not be able to afford or manage on their own.

PEOs are also understood as employer of record / EOR at times.

New Zealand – Country Overview

New Zealand is one of the most prosperous countries in the Asia-Pacific region with a sizable service sector that contributes nearly 65% to the GDP. The country’s major manufacturing industries include food processing, aluminum production, metal fabrication, and wood/paper products. The government’s strong commitment to economic freedom has resulted in openness to global trade. Other major strengths of the country’s economy include a high level of monetary stability, sound management of public finance, and strong protection of property rights.

Capital City



New Zealand Dollar

Principal Language

English, Maori, New Zealand Sign Language


Constitutional Monarchy with a Parliamentary System of Government

Major Cities

Auckland, Christchurch, Hamilton, Dunedin

Employment Contracts in New Zealand

There are two categories of employment agreements in New Zealand under the Employment Relations Act 2000, namely individual and collective. All agreements (individual or collective) must include the following details:

  • Information related to an employee’s entitlements under the Holidays Act 2003
  • The employees’ protection provision stating how workers will be affected in case of restructuring
  • Entitlement to 1.5 times the regular pay for work done on a public holiday
  • Work-related problem resolution process.

Working Hours in New Zealand

The regular work schedule comprises 40 hours and 5 working days in a week unless negotiated otherwise in the employment agreement. Amendments made to the Employment Relations Act in 2015 have made the requirements of rest periods more practical for employers. Employers can do away with breaks if their situation makes it implausible to give breaks or employees receive adequate compensation.


It is not mandatory to provide overtime pay but it must be if specified in employment agreements. Employers and employees can agree on the hourly overtime rates for any work done beyond the regular weekly work schedule of 40 hours.

Employee Leave in New Zealand


The following national holidays are observed in New Zealand:

  • Jan. 1-2: New Year’s
  • Feb. 6: Waitangi Day
  • April 25: ANZAC Day
  • Good Friday and Easter Monday
  • Queen’s Birthday (first Monday in June)
  • Labor Day (fourth Monday in October)
  • Dec. 25: Christmas Day
  • Dec. 26: Boxing Day
  • Provincial Anniversary Day (date determined locally)

If Waitangi Day, Christmas, Boxing Day, New Years’ Day, ANZAC Day, and Jan. 2 falls on a Saturday or Sunday, they are observed on the following workday.

Annual Leave

Employees are entitled to 4 weeks’ leave in a year. The leave can be taken at the time agreed between the employee and the employer. Employees can take 2 consecutive weeks of leave out of the 4 weeks.

Sick Leave

Under the Holidays Act 2003, employees are entitled to 5 days’ sick leave in a year after 6 months of employment. Unused sick leave can be accrued for up to 20 days, and it is not mandatory to pay compensation upon termination of employment. In case an employee receives Accident Compensation Corporation (ACC) or workers’ compensation payments for more than 5 days, both employers and employees are allowed to increase the ACC payment from 80% to 100% by reducing 1 day from employees’ sick leave balance.

Maternity Leave

Women employees, under the Parental Leave and Employment Protection Act 1987, are entitled to 52 weeks’ maternity leave. To qualify, employees must have worked an average of 10 hours in a week or 40 hours in a month.

Paternity Leave

Spouses or partners of employees having a baby are entitled to 52 weeks’ paternity leave. Mostly, employees are entitled to return to their positions at the end of the parental leave. Employers may prefer employees who hold key positions for similar jobs after 6 months. However, reinstating in the earlier position cannot be guaranteed.

Other Leaves

  • Parental Leave
    The government pays a maximum of NZ$527.72 per week as parental leave benefit for up to 18 weeks.
  • Carers’ Leave
    Spouses or partners who take the responsibility of nursing or caring a child aged less than 6 years with an intention to adopt are entitled to same parental leave benefits as biological mothers.
  • Bereavement Leave
    Employees are entitled to 3 days’ bereavement leave upon the death of a close family member including their parents, spouses, children, grandparents, mother or father-in-law. In case of more than 1 death, employees are entitled to an additional 3 days’ bereavement leave in a month.
  • Volunteer Defense Force Leave
    Employees who volunteer in the armed forces are entitled to unpaid leave for training under the Volunteers Employment Protection Act 1973. Employers are required to hold the positions for up to 12 months for employees who volunteer or are called upon a situation of national interest.

Employee Benefits in New Zealand

Pension and Social Security

The normal retirement age is 65 years for individuals who have lived in New Zealand for a minimum 10 years since the age of 20 years or 5 years since the age of 50 years. A work-based savings initiative called KiwiSaver requires employees to make contributions equal to 3% of their pay and employers are required to make contributions equal to at least 3% of employees’ wages.

Pension System

A 3-pillar pension system comprises:

1st Pillar: The New Zealand Superannuation, a non-contributory state pension

2nd Pillar: KiwiSaver scheme

3rd Pillar: Private pension savings

Public Pensions

The New Zealand Superannuation (NZS) provides social protection in the form of a flat-rate pension to all residents who have lived in New Zealand for a minimum 10 years since the age of 20 or 5 years since the age of 50. This pension is financed using general tax revenues.

Occupational Pensions

The KiwiSaver scheme came into effect in July 2007 in addition to the private sector superannuation schemes to complement the pension schemes available to the 2nd pillar pensioners. New employees get enrolled automatically and can opt out within 8 weeks. Occupational pensions are provided via superannuation schemes on a stand-alone basis or as a part of a master trust.

Workers’ Compensation

Accident Compensation Insurance, provided by the Accident Compensation Corporation (ACC), offers coverage for both workplace and non-workplace injuries suffered by both residents and visitors to New Zealand. In case an individual is rendered incapable to earn a living, ACC pays weekly compensation up to a maximum 80% of previous wages.

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