How do I hire my first employee?

Hiring your first person is a big moment. It's also the moment a stack of legal obligations arrives at once. This checklist covers the basics. Rates and rules change, so each item links to the official source to check the current detail.

What do I check before I make an offer?

• Check they can legally work in New Zealand. Citizens and residents can; for visa holders, check their work conditions with Immigration New Zealand.
• Decide the basics: permanent or fixed-term, full or part-time, hours, pay, and where the work happens.
• Check pay against the minimum wage. It's reviewed every year and usually changes on 1 April. See the current rates at employment.govt.nz.

What goes in the employment agreement?

Every employee must have a written employment agreement. Give it to them before they start, tell them they're entitled to get independent advice on it, and give them a reasonable opportunity to do so. Keep a signed copy.

An individual agreement has to cover, at a minimum: both parties' names, a description of the work, where it's done, hours (or an indication of them), pay, a plain explanation of how to resolve employment relationship problems (including the 90-day timeframe for raising a personal grievance), and that the employee will be paid at least time and a half on public holidays they work.

Trial periods of up to 90 days are only valid if they're in the written agreement and agreed before the person starts work.

The free Employment Agreement Builder from Employment New Zealand walks you through it.

How do I register as an employer?

• Register with IRD as an employer through myIR before you first pay someone.
• Get the employee's tax details. They fill in a tax code declaration (the IR330) so you deduct the right PAYE.
• Payday filing. Each payday, you send IRD the employment information for that pay. Payroll software does this for you and is worth every cent.
• Deduct and pay PAYE, plus any student loan, child support or KiwiSaver deductions.

What do I pay into KiwiSaver?

• New employees aged 18 to 65 are generally automatically enrolled in KiwiSaver unless they're already a member or are exempt. Give them the KiwiSaver information pack and pass on their details through payroll.
• Most new employees can opt out between the end of their second week and the end of their eighth week of work.
• As an employer, you pay compulsory employer contributions for eligible members, on top of their pay. The minimum rate was 3% for many years. Under changes announced in Budget 2025 it rose to 3.5% from 1 April 2026, and is due to reach 4% from 1 April 2028. Some employees can choose to stay at a lower rate for a period. Check IRD's KiwiSaver for employers page for the rate that applies now.
• Employer contributions have Employer Superannuation Contribution Tax (ESCT) deducted.

What leave do employees get?

Under the Holidays Act 2003 (which the Government is in the process of reforming, so watch this space):

• Annual holidays: at least four weeks' paid annual leave after 12 months' continuous employment.
• Public holidays: New Zealand has 12 public holidays, including Matariki. Staff who work one are paid at least time and a half, and may also get a day off in lieu.
• Sick leave: 10 days a year after six months' employment.
• Bereavement leave and family violence leave are also part of the minimum entitlements.

Holiday pay calculations are notoriously tricky, especially for variable hours. Good payroll software and Employment New Zealand's leave and holidays guidance are your friends.

What records do I keep?

Keep wage and time records and holiday and leave records for every employee. Employment New Zealand says to keep them for six years. Keep the signed employment agreement too.

What about health, safety and ACC?

• Under the Health and Safety at Work Act 2015, you must look after the health and safety of your workers, as far as is reasonably practicable. Start with WorkSafe's guidance for small businesses.
• ACC levies for employers are calculated from the employment information you file with IRD.

What happens on day one?

Walk them through the job, the people, health and safety (exits, hazards, who to tell), and how they'll get paid. Then put the kettle on. You're an employer now.