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Annual leave in New Zealand
Maternity, paternity, and parental leave in New Zealand
Adoption leave in New Zealand
Other types of leave in New Zealand
Public holidays in New Zealand
Protect your employees and your business
Leave policy in New Zealand
Creating a well-defined leave policy can help you become an employer of choice. To do this effectively, you must understand the labour laws and regulations governing leave entitlements and paid time off.
In New Zealand, employees are entitled to various types of leave as prescribed by the Employment Relations Act 2000 and the Holidays Act 2003. These leave entitlements are designed to offer balance between work and personal life, while also providing job protection during periods of illness, bereavement, and parenthood.
Here’s a brief overview of several types of paid leave in New Zealand, which we’ll discuss further in this guide:
Annual leave in New Zealand
After 12 months of continuous employment, employees are eligible for 4 weeks of annual holidays (annual leave).
Public holidays in New Zealand
If employees would have otherwise worked on public holidays, they receive paid time off.
Sick leave in New Zealand
An employee receives 10 days of sick leave annually after six months of continuous employment. Employees have the ability to carry over up to ten unused sick days each year, which can accrue to a maximum of 20 days.
This is aligned with the legislative changes made by the New Zealand Parliament through the Holidays Amendment Bill, which have notably enhanced the sick leave provisions for employees.
The sick leave policy applies across various employment types, including full-time, part-time, and fixed-term contracts, provided the fixed-term spans more than six months. In addition, casual employees also qualify for sick leave once they have achieved six months of continuous employment under the same employer, if they’ve consistently worked an average of ten hours a week, with at least one hour every week or 40 hours each month.
This entitlement allows employees to recover from illness without the worry of lost income, helping to maintain a healthy workforce. Meanwhile, it’s important to note that sick leave entitlements are not pro-rated in New Zealand.
Parental leave in New Zealand
Employees can be eligible for various types of parental leave if they meet certain conditions, which include maternity leave, paternity leave, and extended leave for caring for young children.
Annual leave in New Zealand
Paid annual leave is a key entitlement for employees to ensure they can enjoy rest and recreation away from the workplace. Employees become entitled to at least four weeks of paid annual holidays (annual leave) after completing 12 months of continuous employment with their employer. This entitlement is crucial for promoting work-life balance and the overall well-being of the workforce.
Taking the annual leave can sometimes vary. Employers and employees may negotiate the timing of leave to accommodate workplace needs and personal preferences. However, the law stipulates that employees must have a reasonable opportunity to take their annual leave. While the default entitlement is four weeks, some employment agreements may grant more than the minimum requirement.
Moreover, the legislation ensures that employees are compensated during their annual leave. This compensation is paid at the rate of what the employee would ordinarily earn if they were at work. The calculation of the payment for annual leave takes into account various factors and can sometimes be complex, especially for employees with variable hours or earnings.
Employers are also required to keep accurate records of leave entitlements and usage, ensuring transparency and fairness in how annual leave is managed and administered. This system helps in maintaining a fair and equitable workplace, where employees can reliably access their leave entitlements.
Can you cash out annual leave in New Zealand?
Yes, employees have the option to cash out up to one week of their annual leave each year. To do this, the request must be made in writing. However, employers are not required to approve the cash-out. If employers do not approve the cash-out, they can offer employees the option to carry over their unused leave.
The entitlement to cash out annual leave comes into effect after the employee has completed 12 months of employment. Any cashed-up leave is paid out at the rate that the employee would have been paid if they had taken the leave as a paid holiday.
Maternity, paternity, and parental leave in New Zealand
Maternity leave law in New Zealand
Maternity leave in New Zealand is governed by the Parental Leave and Employment Protection Act 1987. The law ensures that employees who are expecting a child have the right to take leave from work to care for their newborn or adopted child.
Maternity leave policy in New Zealand
The concept of maternity leave is more broadly referred to as primary carer leave. This provision supports not only female employees who are expecting a child, but also spouses, partners, or any employee who will permanently assume the primary role in nurturing, caring for, and overseeing the development of a child under six years old.
Employees who are expecting a baby or adopting a child may be eligible for several types of leave:
- Primary carer leave: This type of leave is available to the primary carer of a newborn or adopted child and can last up to 26 weeks. As the name suggests, it is meant for the main caregiver of the child and is not limited to biological mothers. Maternity leave begins on the due date or upon the arrival of the child. In other circumstances, such as adoption, leave starts from the moment the employee takes on the primary carer’s responsibility for the child. Subject to prior agreement with the employer, employees can take this leave flexibly, initiating primary carer leave up to six weeks ahead of the expected due date or the commencement of primary care responsibilities.
- Partner’s leave: Partners of primary carers can take unpaid leave to support the primary carer, ensuring they also have time to bond with the child.
- Extended leave: Following primary carer leave, both parents can share up to 26 additional weeks of extended leave, depending on the circumstances.
- Negotiated carer leave: This type of leave provides flexibility for those who do not fit into the other categories of leave or who need special arrangements.
The specific type of parental leave an employee can take will depend on their individual circumstances, including the duration they have been employed and the nature of their employment contract.
To support parents during this period, New Zealand also offers financial assistance through its paid parental leave scheme, which provides eligible primary carers with government-funded payments to help mitigate the loss of income during their leave.
In addition, employment protections are provided to ensure that parents taking leave can return to their job or a similar position upon the completion of their leave.
Paternity leave law in New Zealand
The primary legislation covering paternity leave is the Parental Leave and Employment Protection Act 1987. Under the Act, partners of primary carers can qualify for what is referred to as ‘partner’s leave’. Partner’s leave allows the partner of a person who is the primary carer of a new child to take this leave entitlement to support them.
Paternity leave policy in New Zealand
The partners (which include fathers, same-sex partners, or those in a de facto relationship) of new mothers or primary carers can qualify for partner’s leave to take the time off around the arrival of a new child.
Partners are eligible to start their leave up to three weeks prior to the expected delivery date of their child, or from the time when their spouse or partner assumes the role of primary carer for a child under the age of six.
The leave period extends for a duration of 21 days from the birth of the baby. This can be extended if the newborn is hospitalised beyond the 21-day period, which ends on the day the baby is discharged from the hospital or when the spouse or partner steps into the primary carer role for the child.
Parental leave policy in New Zealand
There are four main types of parental leave available in New Zealand, which include primary carer leave, partner’s leave, extended leave, and negotiated carer leave.
The type of leave an individual is entitled to can vary depending on their personal circumstances, with each category tailored to meet different needs during the transition into parenthood.
Paid parental leave in New Zealand
Similar to salaries or wages, paid parental leave payments are taxable income. These payments are made by Inland Revenue, and the net amount is disbursed to the recipient after deductions such as tax, child support payments, or student loan repayments, if applicable. The structure of this system ensures that while carers are on leave, they receive financial support, which helps ease the transition into parenthood or the adoption process.
Moreover, from July 1, 2024, individuals who opt for KiwiSaver deductions from their paid parental leave payments will also receive employer contributions of 3%.
Adoption leave in New Zealand
Employees preparing to bring a child under the age of six into their home on a permanent basis may qualify for relevant adoption or parental leave provisions. The designated primary guardian is entitled to a single, uninterrupted period of primary carer leave, which can last up to a maximum of 26 weeks.
Importantly, eligibility for this leave requires that the employee has been consistently engaged with their current employer for a minimum of 10 hours each week throughout the six months leading up to the day they take on the caregiving role.
This policy ensures that adoptive parents have the opportunity to establish a bond with their child, similar to the leave afforded to biological parents.
Employees planning to adopt a child are required to inform their employer as soon as possible, ideally three months before the expected date of the child coming into their care. This communication allows employers to adequately prepare for the employee’s absence.
Other types of leave in New Zealand
There are other types of leave being offered in New Zealand.
Aside from statutory leave such as annual, sick, and bereavement leave, employers often provide or agree to various types of leave. Although the law does not mandate these, employers can offer them to employees as part of their employment package or through collective agreements. Common types of non-statutory leave include:
Miscarriage paid leave in New Zealand
New Zealand has legislation in place that provides for paid leave following a miscarriage. The country’s Parliament approved legislation that offers three days of paid leave after a miscarriage or stillbirth, allowing those affected to grieve without the need to use their sick leave.
Special leave in New Zealand
The special leave covers various types of leave outside the standard annual, sick, and bereavement leave entitlements. Special leave specifically refers to the entitlement for pregnant employees. They are entitled to up to 10 days of unpaid special leave to attend pregnancy-related medical appointments, antenatal classes, or to deal with issues related to their pregnancy or childbirth. This special leave is in addition to the parental leave benefits and does not affect the employee’s entitlement to parental leave.
Extended leave in New Zealand
Extended leave provides parents with additional unpaid time off, which is determined by their tenure with the company. Employees who have completed at least 12 months of service may be eligible for up to an extra 52 weeks of leave. Meanwhile, those who have been with the company for a minimum of six months can qualify for an additional 26 weeks of leave.
Leave without pay in New Zealand
This is an arrangement in which an employee takes time off work but does not receive payment for the period. Employees typically use it when they have exhausted their paid leave entitlements or wish to take a longer period of leave for personal reasons.
Long service leave in New Zealand
Some employers reward employees for their loyalty and long service to the company by providing additional leave, often after a significant number of years of service.
Leave in lieu of notice in New Zealand
In certain situations, employers may offer ‘garden leave’ to employees who are resigning or facing termination, allowing them to leave without working their notice period. During this period, they would continue to receive payment.
Leave during and after a natural disaster in New Zealand
Employees may be able to access special leave provisions in the event of a natural disaster affecting their ability to work or their workplace’s functionality.
To ensure clear expectations for both parties, it’s crucial for employees and employers in New Zealand to discuss and agree upon these types of leave and to document them in employment agreements or policies.
Public holidays in New Zealand
Thursday, 1 January.
New Year’s Day
Friday, 2 January.
Day after New Year’s Day
Friday, 6 February.
Waitangi Day
Friday, 3 April.
Good Friday
Monday, 6 April.
Easter Monday
Saturday, 25 April (Mondayised to Monday, 27 April if not worked).
ANZAC Day
Monday, 1 June.
King’s Birthday
Friday, 26 June.
Matariki
Monday, 26 October.
Labour Day
Friday, 25 December.
Christmas Day
Saturday, 26 December (Mondayised to Monday, 28 December if not worked).
Boxing Day
Public holiday entitlements
Public holidays are paid days off for employees who normally work on the day the holiday falls.
If an employee works on a public holiday, they are entitled to:
- At least time and a half for hours worked, and
- A paid alternative holiday if the day would otherwise be a working day.
Employees may be required to work on a public holiday only if this is specified in their employment agreement. Where the agreement allows it, employees may still retain the right to refuse in certain circumstances.
Mondayisation
When a public holiday falls on a weekend, it may be Mondayised (moved to the next working day) to ensure employees do not lose their entitlement, depending on whether the day would normally be worked.
Protect your employees and your business
As an employer in New Zealand, you need to understand your employees’ rights and entitlements. But keeping up with them can be a lot of work.
When you hire workers with CXC, we’ll ensure your engagements are in line with all local, national and international employment regulations. That way, your workers will get their benefits they’re entitled to, and your business will be protected from risk.
FAQ's
What are employees' minimum leave entitlements in New Zealand?
Employees in New Zealand can be entitled to four weeks of paid annual holidays, 10 days of paid sick leave, bereavement leave, family violence leave, public holiday entitlements and parental leave.
Under the Holidays Act 2003, employees become entitled to four weeks of paid annual holidays after 12 months of continuous employment. Eligible employees also receive 10 days of paid sick leave each year after meeting the six-month eligibility requirement.
New Zealand’s statutory leave framework also includes bereavement leave and 10 days of paid family violence leave for eligible employees. Separate rules apply to parental leave, including up to 26 weeks of primary carer leave and, for qualifying employees, extended unpaid leave. The Employment Leave Act 2026 has now passed into law, but it will not replace the Holidays Act 2003 until 6 August 2028. Until that date, employers must continue applying the current Holidays Act rules and cannot implement the new statutory framework early.
Employers can provide more generous entitlements through an employment agreement or company leave policy in New Zealand, but they cannot provide less than the statutory minimum.
How many vacation days do employees get in New Zealand?
In New Zealand, vacation days are called annual holidays. Employees are entitled to at least four weeks of paid annual holidays after 12 months of continuous employment. The entitlement should reflect a genuine working week, so employers should take particular care where an employee’s days or hours vary.
The entitlement is measured in weeks rather than a fixed number of days. For someone who normally works five days a week, four weeks would generally equal 20 working days. Someone working three days a week would generally receive 12 working days.
Employees can ask to cash out up to one week of their four-week minimum entitlement each year. The request must be made in writing, and the employer does not have to agree.
When annual holidays are taken, the employee must be paid the higher of their ordinary weekly pay or average weekly earnings over the previous 12 months.
How does sick leave work in New Zealand?
Eligible employees in New Zealand receive 10 days of paid sick leave each year after six months of qualifying employment. Sick leave can be used when the employee is sick or injured, or to care for a sick or injured partner, child or dependant.
Unused sick leave in New Zealand can carry over, but the statutory balance is capped at 20 days. This ordinarily means that up to 10 unused days can carry forward and be added to the next 10-day entitlement. An employment agreement or policy can permit a higher accumulated balance.
The entitlement applies to full-time, part-time and qualifying casual employees. An employee who has not worked continuously for six months can still qualify if, over a six-month period, they worked an average of at least 10 hours per week and at least one hour every week or 40 hours every month. The statutory 10-day entitlement is not prorated for part-time employees. Sick leave is only used for days that would otherwise have been working days for the employee.
Employers can request proof of sickness or injury. If proof is requested for an absence of less than three consecutive calendar days, the employer must generally inform the employee as early as possible and reimburse the reasonable cost of obtaining it. For an absence of three or more consecutive calendar days, the employee normally bears that cost. Employers can offer more generous sick leave through the employment agreement or company policy.
What maternity and parental leave are employees entitled to in New Zealand?
Eligible employees in New Zealand can take up to 26 weeks of primary carer leave and may qualify for government-funded parental leave payments for up to 26 weeks. Employees who meet the 12-month employment test may have up to 52 weeks of parental leave in total.
To qualify for primary carer leave under the six-month employment test, an employee generally must have worked for the same employer for an average of at least 10 hours per week during the six months immediately before the expected date of delivery or assumption of permanent primary care. The 12-month test can provide up to another 26 weeks of extended leave, subject to any leave shared with a spouse or partner. What is often called maternity leave in New Zealand is legally part of the parental leave system. Primary carer leave can apply to a birth mother or another eligible person who becomes the primary carer of a child.
Government-funded parental leave payments are paid by Inland Revenue. From 1 July 2026, eligible employees can receive their usual weekly earnings up to a maximum of NZD 811.05 before tax per week, for up to 26 weeks.
Eligible partners can separately receive one or two weeks of unpaid partner’s leave, depending on how long they have worked for their employer. An employee who meets the six-month test may receive one week, while an employee who meets the 12-month test may receive two weeks.
A pregnant employee may also take up to 10 days of unpaid special leave for pregnancy-related appointments before beginning primary carer leave.
Does annual leave accrue during parental leave in New Zealand?
Yes. Parental leave is treated as continuous employment, so an employee can continue to reach their annual holiday anniversary and become entitled to annual holidays while on leave. However, different rules can apply when calculating the pay for those holidays.
If an employee already had unused annual holidays before starting parental leave, those holidays continue to be paid under the normal rules.
The difference applies to annual holidays that become due during parental leave or within 12 months after the employee returns to work. Those holidays are paid using the employee’s average weekly earnings for the previous 12 months, without comparing that figure with ordinary weekly pay.
This can result in lower holiday pay because periods of unpaid parental leave can reduce the employee’s average weekly earnings. The special calculation attaches to the particular holiday entitlement that arose during parental leave or within the 12-month period after return; it is not necessarily a permanent change to all future annual holiday payments.
In summary, annual holiday entitlement continues through parental leave, but parental leave can affect the amount the employee receives when some of those holidays are later taken.
What are "Keeping in Touch" hours during parental leave in New Zealand?
Keeping in Touch hours allow an employee to do up to 64 hours of paid work for their employer during the parental leave payment period without being treated as having returned to work.
The arrangement is voluntary. Both the employee and employer must agree, and the employee must be paid for the hours they work.
Keeping in Touch hours can be used for activities such as attending training, joining important meetings or preparing to return to work.
There is an important restriction: an employee generally cannot perform paid work during the first 28 days after the child’s birth without being treated as having returned to work. Working more than the 64-hour limit can also end eligibility for further parental leave payments. The 64-hour limit applies across the parental leave payment period rather than separately to each employer. Additional Keeping in Touch hours may be available during a qualifying preterm baby payment period. Employers should record the dates, hours, duties and payments accurately and coordinate with the employee before any work is performed.
Does New Zealand have paid miscarriage leave?
Yes. Eligible employees can receive three days of paid bereavement leave following a miscarriage or stillbirth. The entitlement is not limited to the person who was pregnant. It can also cover their spouse or partner.
Three days of bereavement leave can also apply to a former partner who would have been a biological parent, a person who had agreed to become the child’s primary carer, and the partner of an intended primary carer. The three days apply per qualifying miscarriage or stillbirth and do not have to be taken consecutively or immediately. The employee must first satisfy the statutory six-month eligibility test for paid bereavement leave.
This leave is treated as bereavement leave, rather than a separate category called miscarriage leave.
Where the employee is already entitled to parental leave payments and experiences a miscarriage, stillbirth or the death of their baby, separate parental leave payment rules may also apply. An eligible birth mother may remain entitled to up to 26 weeks of primary carer leave and parental leave payments following miscarriage, stillbirth or the death of the baby, provided the applicable conditions are met and the entitlement has not been transferred or ended by a return to work. The employee may choose to return earlier but is not required to do so solely because of the loss.
What other statutory leave types exist in New Zealand?
In addition to annual holidays, sick leave and parental leave, New Zealand employees can qualify for bereavement leave, family violence leave, public holiday entitlements and alternative holidays.
The main additional statutory entitlements include:
Leave | Minimum entitlement |
Bereavement leave | 3 days for an immediate family member, miscarriage or stillbirth; 1 day for certain other bereavements |
Family violence leave | Up to 10 days of paid leave each year for eligible employees |
Public holidays | Paid day off when the holiday falls on an otherwise working day |
Alternative holiday | Usually provided when an employee works a public holiday that would otherwise have been a working day |
Partner’s leave | Up to 1 or 2 weeks unpaid for eligible partners around the birth or arrival of a child |
Public holidays are separate from annual holidays and other statutory leave. For example, if an employee is sick on a public holiday that would otherwise be a working day, the day is generally treated as a public holiday rather than deducted from their sick leave balance.
Is annual leave paid out when employment ends in New Zealand?
Yes. When employment ends in New Zealand, the employer must pay the employee for annual holidays they are entitled to but have not taken.
Unused annual holiday entitlement is paid at the higher of the employee’s ordinary weekly pay or average weekly earnings at the end of employment. The entitlement is treated as if the employee had taken the holidays immediately after their last day of employment.
Employers must also account for the period worked since the employee’s last annual holiday anniversary. This is generally calculated as 8% of gross earnings for that period, subject to adjustments for relevant holiday payments already made.
Final pay can also include unused alternative holidays and other outstanding amounts owed to the employee.
This is different from voluntarily cashing out annual holidays while still employed, where employees can generally request payment for only up to one week of their four-week minimum entitlement each year.
How does CXC ensure compliant leave and time off management in New Zealand?
CXC manages New Zealand leave entitlements alongside payroll and employment administration, helping global companies apply the correct leave entitlement, eligibility rule and pay calculation to each employee.
Through its Employer of Record capability, CXC can manage annual holidays, sick leave in New Zealand, parental leave, bereavement leave, family violence leave, public holidays and alternative holidays while maintaining the required employee records.
CXC also connects leave directly with payroll. This is important because New Zealand’s Holidays Act uses different calculations for different situations. Annual holiday pay, for example, requires employers to compare ordinary weekly pay with average weekly earnings, while sick and bereavement leave use different daily-pay calculations.
For international companies, CXC provides local administration without requiring global HR teams to manually interpret New Zealand leave rules for every absence.
Compliantly hire employees anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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