Employment & leave New Zealand
Holiday Pay Calculator NZ
Holiday pay in New Zealand is not simply your normal wage. When you take annual holidays you are paid the greater of your ordinary weekly pay and your average weekly earnings over the last 12 months, and when a job ends you are paid 8% of your gross earnings. This calculator applies both.
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What you would usually receive for a normal week, before tax.
Including overtime, regular bonuses and allowances, but not the pay for earlier leave.
Holiday pay
—Ordinary weekly pay
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Average weekly earnings
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Greater of the two
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8% of gross earnings
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Less already paid
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The greater-of test
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
Holidays Act 2003; set in law
General rules only. Holiday pay has detailed rules in the Holidays Act 2003, including how irregular pay, bonuses and payments for public holidays are included. These are the standard calculations; if your pay varies a lot, check with Employment New Zealand. The Act is due to be replaced by the Employment Leave Act 2026, reported to start in 2028.
How is holiday pay calculated in NZ?
For leave you take, holiday pay is the greater of your ordinary weekly pay and your average weekly earnings for the 12 months before, times the weeks taken. When employment ends, unused holiday pay is 8% of gross earnings for the period, less any holidays already paid. For example, 4 weeks at $1,200 a week is $4,800, and 8% of $60,000 gross is $4,800.
Taking annual holidays
After 12 months of continuous employment you are entitled to four weeks of paid annual holidays. When you take leave you are paid the greater of ordinary weekly pay and average weekly earnings, so a week of leave is never worth less than a normal week.
Your employer must pay the leave before you take it or on the usual payday, whichever you agree.
When your job ends
Any annual holidays you have not taken are paid out when employment ends, and where you have not yet earned an entitlement, holiday pay is 8% of your gross earnings. Holiday pay already paid during the year reduces it.
To track how many weeks you have accrued, use the annual leave calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
average weekly earnings = gross earnings in the last 52 weeks ÷ 52holiday pay for leave taken = greater of (ordinary weekly pay, average weekly earnings) × weeks takenholiday pay when employment ends = 8% × gross earnings this entitlement year − holiday pay already paid
The greater-of test protects employees whose earnings include overtime or regular bonuses: someone who works overtime most weeks has an average above their ordinary week, and holiday pay is based on the higher figure. For someone on a flat salary the two numbers are the same.
The 8% on finishing is a minimum, applies to gross earnings, and counts all holiday pay and leave already paid out, so the calculation subtracts it.
A worked example
Ordinary weekly pay of $1,200 and $62,400 gross in the last 52 weeks, taking two weeks, and a job ending after $40,000 of gross earnings this year.
- Average weekly earnings, $62,400 ÷ 52$1,200.00
- Greater of the two$1,200.00
- Two weeks of leave$2,400.00
- 8% of $40,000$3,200.00
$2,400.00 for the two weeks of leave, or $3,200.00 if the job ends.
Here the two are equal because pay is steady.
The new Act
Parliament passed the Employment Leave Act 2026, which replaces the Holidays Act 2003 with a simpler, hours-based system. Reports put the changeover in 2028, and until then these rules continue to apply. Check Employment New Zealand for the timetable.
What it leaves out
Public holiday pay, alternative holidays and the way irregular bonuses are included are covered by other tools or by the rules in the Act. If you think you have been underpaid, Employment New Zealand has a free service.
What this calculator does not do
- Standard greater-of and 8% calculations
- Does not model every earnings inclusion rule
- Holidays Act 2003 rules; being replaced from 2028
- Gross pay before tax
Common questions
How is holiday pay calculated in NZ?
The greater of ordinary weekly pay and average weekly earnings, for the weeks taken. When employment ends, it is 8% of gross earnings.
What is average weekly earnings?
Gross earnings over the last 52 weeks divided by 52, excluding pay for earlier leave.
How many weeks of annual holidays do I get?
Four weeks after 12 months of continuous employment.
Is holiday pay taxed?
Yes, as ordinary income, and it may be taxed on a different basis if paid as a lump sum.
Does the Holidays Act still apply?
Yes, until it is replaced by the Employment Leave Act, which reports say is due in 2028.
Where these numbers come from
- Employment New Zealand — annual holidays Four weeks of annual holidays and how holiday pay is calculated
- Employment New Zealand — Employment Leave Bill 2026 The replacement for the Holidays Act and its timetable
Rates last verified 2026-10-26 Every figure Employment New Zealand sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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