Employer of Record (EOR) in New Zealand
Employer of Record (EOR) in New Zealand enables businesses to hire employees without establishing a local subsidiary. New Zealand’s workforce is about 3 million people, with strong skills in agriculture, information technology, engineering, healthcare, and renewable energy. The country is known for its transparent employment laws, but employers must comply with strict rules regarding payroll, contracts, and employee rights. EOR services in New Zealand help global companies manage employment contracts, taxes, social contributions, and compliance efficiently. Businesses benefit from quick hiring while reducing risks of non-compliance.
About New Zealand
New Zealand, located in the South Pacific, is a developed nation known for its strong economy, natural resources, and political stability. The country has become a hub for agriculture, dairy exports, renewable energy, tourism, film production, and a growing technology sector.
Its labor force is highly educated, English-speaking, and adaptable, making it attractive to multinational companies. New Zealand is often ranked among the top countries in the world for ease of doing business due to its efficient legal system, transparent governance, and flexible regulatory environment.
The workforce is supported by progressive labor laws that emphasize employee rights, minimum wage guarantees, and balanced work-life standards. Combined with its strategic ties to Asia-Pacific economies, New Zealand presents an appealing destination for companies hiring talent through EOR solutions.
Employment Terms and Regulations
Types of Contracts
- Permanent employment contracts
- Fixed-term contracts
- Casual employment contracts
- Part-time contracts
Working Hours
- Standard: 40 hours per week (8 hours/day, 5 days/week)
- Flexible working arrangements are common
Minimum Wage (2025)
- NZD 23.15 per hour (adult minimum wage)
Probation Period
- Trial period: Up to 90 days (for businesses with fewer than 20 employees)
Taxation and Contributions
- Employers withhold Pay-As-You-Earn (PAYE) tax on employee income
- KiwiSaver (retirement savings scheme) is mandatory if employees opt-in, with employer contributions required
Types of Leave
Annual Leave:
20 days (after 12 months of continuous employment)
Public Holidays:
11 days per year
Sick Leave:
10 days per year (after 6 months of employment)
Maternity Leave (Parental Leave):
Up to 26 weeks paid parental leave, plus extended unpaid leave
Bereavement Leave:
3 days (immediate family)
Employee Benefits
- KiwiSaver contributions (retirement)
- Paid annual leave
- Sick and parental leave
- Public health system access
- Flexible working rights
Termination Process
- Notice period: Typically 2–4 weeks, depending on contract terms
- Employers must follow fair dismissal procedures, with proper documentation and legal grounds
- Redundancy pay applies in some cases
Employer Taxes
KiwiSaver Employer Contribution:
3% of gross salary (if employee is enrolled)
Accident Compensation Corporation (ACC) Levy:
~1–2% (varies by industry risk category)
Total Employer Contributions:
Around 4%–5% of gross salary
EMPLOYER TAXES
4%–5% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
