New Zealand Holiday Pay Calculator (Average Weekly Earnings)

About the New Zealand Holiday Pay Calculator (Average Weekly Earnings)

Work out holiday pay in New Zealand under the Holidays Act 2003, the way Employment New Zealand explains it. For annual holidays, the calculator compares your ordinary weekly pay — entered, or worked out from your last 4 weeks of earnings — with your average weekly earnings over the last 12 months, and pays the leave at the greater of the two.

Other modes cover 8% pay-as-you-go holiday pay for fixed terms under a year and irregular work, public holidays (time-and-a-half, alternative holidays, relevant and average daily pay), and the holiday pay owed when you leave a job: untaken annual holidays plus 8% of your earnings since your last anniversary. Nothing you type leaves your browser.

Annual holidays and how they are paid

Every employee becomes entitled to at least 4 weeks of paid annual holidays after each 12 months of continuous employment (Employment New Zealand). Each week of annual holidays is paid at least the greater of (annual holiday pay):

• ordinary weekly pay (OWP): what you are normally paid for a week, including regular allowances, regular overtime and commission, but not one-off bonuses, discretionary payments or employer superannuation contributions. When it cannot be worked out — your hours or regular payments vary — it is (a − b) ÷ 4, where a is your gross earnings for the 4 weeks to the end of the last pay period before the holiday and b is one-off, irregular or discretionary payments in them;
• average weekly earnings (AWE): your gross earnings for the 12 months to the end of the last pay period before the holiday, divided by 52 — or, if you have worked there less than 12 months, divided by the number of whole or part weeks you have worked.

The calculation is done once, at the start of the holiday, and the pay is made before you go unless you have agreed in writing to be paid in your normal pay cycle. You can ask to cash up 1 week of each year’s entitlement.

Pay-as-you-go holiday pay (8%)

Instead of 4 weeks of paid annual holidays, holiday pay can be added to each pay at 8% (or more) of gross earnings — but only for a genuine fixed-term agreement of less than 12 months, or work so irregular or intermittent that it is impracticable to give 4 weeks of annual holidays. It must be agreed in your employment agreement and be an identifiable amount on your pay. If it is used when it should not be, you are still entitled to 4 weeks of paid annual holidays and keep the payments (pay-as-you-go).

Public holidays

If you work on a public holiday you must be paid at least time-and-a-half: your relevant daily pay (or average daily pay) for the time worked plus half again — or your agreement’s penal rate, if that gives more. If the day is one you would usually work (an otherwise working day), you also get an alternative holiday. If you don’t work on an otherwise working day, you get the day off on relevant daily pay (public holiday pay).

Relevant daily pay is what you would have earned on the day, including regular allowances and overtime. Average daily pay — your gross earnings for the last 52 weeks divided by the days you worked or were on paid leave or holidays — can be used only when relevant daily pay cannot practicably be worked out or your daily pay varies in the pay period (gross earnings, RDP and ADP).

Holiday pay in your final pay

When you leave, your final pay must include any annual holidays you are entitled to and have not taken, paid at the greater of ordinary weekly pay and average weekly earnings as if you took them straight after your last day, plus 8% of your gross earnings since your last anniversary — including the holiday pay and alternative holidays paid out in the final pay — less any annual holidays already paid in advance or as pay-as-you-go. If you leave within your first year, the 8% is worked out on everything you earned there. Alternative holidays you have not taken are paid at your relevant daily pay for your last day (final pay).

The Employment Leave Act

The Employment Leave Act replaces the Holidays Act on 6 August 2028, with new rules for how leave is earned and paid. Until it starts, employers must follow the Holidays Act — they cannot use the new rules early, even if you agree (Employment New Zealand). This calculator follows the Holidays Act.

Limitations

• Gross earnings, ordinary weekly pay and relevant daily pay depend on what your employment agreement requires to be paid; enter them from your payslips. The calculator does not decide which payments are regular.
• Public holidays falling in the untaken leave added to the end of your employment, keeping-in-touch days, ACC weekly compensation and parental leave are not worked out.
• Collective or individual agreements can give more than the minimums shown; they cannot give less.
• Not legal advice: for a dispute, talk to your employer first and then Employment New Zealand.

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