Calk.nz
Back to Pay & Salary

Holiday Pay Calculator

NZ holiday pay calculator: annual leave (4 weeks/year), public holiday rates (1.5×), Mondayisation, and 8% pay-as-you-go. Holidays Act 2003.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Updated 2026-27 FYData stays on your deviceMBIE / Employment NZ

About this calculator

This calculator implements Holidays Act 2003 — annual leave from Employment New Zealand. Last consulted 2 April 2026. Verify the figures yourself by following the link.

Current NZ holiday pay rules

Holidays Act 2003 — current as of 2026
  • •Annual leave entitlement: 4 weeks/yr (5 weeks after 12 months continuous)
  • •Calculation rule: Higher of OWP or AWE (52-wk avg)
  • •Pay-as-you-go (casual): 8% of gross earnings
  • •Public holidays: 12 days/yr (paid if worked or normally rostered)
  • •Sick leave: 10 days/yr
  • •Bereavement leave: 3 days (close family) / 1 (other)

Source: Employment NZ — Holidays Act

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

How NZ holiday pay is calculated

Under the Holidays Act 2003, holiday pay is the GREATER of two calculations: Ordinary Weekly Pay (OWP) or Average Weekly Earnings (AWE) over the last 52 weeks. The higher amount applies for each leave week taken.

  1. 1

    Calculate Ordinary Weekly Pay (OWP)

    OWP = base_salary ÷ 52  +  regular_allowances  +  productivity_payments

    Reflects what you earn in a normal working week. Excludes one-off bonuses and overtime.

  2. 2

    Calculate Average Weekly Earnings (AWE)

    AWE = gross_earnings_last_52_weeks ÷ 52

    Includes overtime, bonuses, commissions, taxable allowances. Captures total realised pay.

  3. 3

    Take the GREATER of OWP or AWE

    Holiday Pay (per week) = max(OWP, AWE)

    Per Section 21 Holidays Act. If you earned overtime/bonuses, AWE often wins.

  4. 4

    8% Pay-as-you-go alternative (casual only)

    Holiday Pay = gross_earnings × 8%

    Only for fixed-term or genuinely casual employees. Permanent staff must take leave properly.

Worked example

Inputs: $65,000 base, plus $5,000 overtime over 52 weeks

Result: OWP = $65,000 ÷ 52 = $1,250/week. AWE = ($65k + $5k) ÷ 52 = $1,346/week. Holiday pay = $1,346/week (AWE wins).

Frequently Asked Questions

How much annual leave am I entitled to in NZ?
After 12 months of continuous employment with the same employer, you are entitled to a minimum of four weeks of paid annual leave per year under the Holidays Act 2003. The pay rate for annual leave is the greater of your ordinary weekly pay (OWP) or your average weekly earnings (AWE) over the past 12 months — this ensures those who regularly work overtime or earn irregular income receive fair leave pay. For example, an employee earning $60,000 per year is entitled to four weeks leave worth approximately $4,615. During the first 12 months, employees can agree with their employer tō tāke annual leave in advance. Some employers offer more than four weeks as a benefit. If you leave a job before taking accrued leave, you are entitled to a payout. Source: Employment New Zealand — Annual Leave (employment.govt.nz/leave-and-holidays/annual-holidays).
What is Mondayisation?
Mondayisation is the New Zealand rule that transfers a public holiday to the following Monday when it falls on a weekend and is not otherwise a working day for you. For example, if Christmas Day (25 December) falls on a Saturday, it is 'Mondayised' to Monday 27 December. If both Saturday and Sunday are public holidays (as when Christmas and Boxing Day both fall on a weekend), the Monday and Tuesday following are both substituted. This rule is governed by the Holidays Act 2003 and ensures that employees receive the benefit of every public holiday regardless of their regular work schedule. The actual day of observance may differ from the statutory date, so employers and employees should check the official public holidays calendar published by Employment New Zealand each year. Source: Employment New Zealand — Public Holidays (employment.govt.nz/leave-and-holidays/public-holidays).
How many public holidays does NZ have?
New Zealand has 12 public holidays each year (with one — the provincial anniversary day — varying by region, giving some areas effectively 12 days while others observe theirs on a weekday). The national public holidays are: New Year's Day (1 January), Day after New Year's Day (2 January), Waitangi Day (6 February), Good Friday, Easter Monday, Anzac Day (25 April), King's Birthday (first Monday in June), Matariki (Friday in late June or early July — the date changes each year based on the Māori lunar calendar), Labour Day (fourth Monday in October), Christmas Day (25 December), and Boxing Day (26 December). Each region also has its own anniversary day (e.g., Auckland — 29 January area, Wellington — 22 January area). Source: Employment New Zealand — Public Holidays (employment.govt.nz/leave-and-holidays/public-holidays/public-holidays-and-anniversary-dates).

Holiday pay in NZ is calculated differently for permanent and casual employees. Permanent employees receive 4 weeks' pay as their annual holiday entitlement. Casual employees (with no fixed hours or regular pattern) receive holiday pay at 8% of gross earnings, which may be included in each pay or paid separately.

How this calculator works

For permanent employees: annual holiday pay = 4 × ordinary weekly pay (or average weekly earnings if higher). For casual employees: holiday pay = 8% of gross earnings. The 8% rate comes from 4/52 ≈ 7.69%, rounded up to 8% as the statutory minimum. When 8% is paid with each pay packet it is added on top of gross wages. Permanent employees also receive pay for the 11 public holidays they are entitled to, and sick leave of 10 days per year.

Holiday Pay Summary

Permanent employee minimum4 weeks annual leave
Casual employee minimum8% of gross earnings
Public holidays (all employees)11 per year
Sick leave (after 6 months)10 days per year
Alternative holiday (worked public holiday)1 day in lieu

Casual employees may have holiday pay included ("rolled up") in their hourly rate, provided it is clearly identified.

Worked Examples

Casual employee with total gross earnings of $15,000 for the year

Holiday pay: $1,200.

  1. Gross earnings: $15,000
  2. Holiday pay = $15,000 × 8% = $1,200
  3. If paid with each pay: 8% is added to each pay packet
  4. E.g. a $1,000 pay period would include $80 of holiday pay

Permanent employee on a $60,000 annual salary

Annual leave payout: $4,615.38.

  1. Ordinary weekly pay: $60,000 / 52 = $1,153.85
  2. Annual leave pay = 4 × $1,153.85 = $4,615.38
  3. Equivalently: $60,000 × 4/52 = $4,615.38
  4. If average weekly earnings (including overtime etc.) exceed $1,153.85, the higher amount applies

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

People Also Use

Income Tax Calculator 2026-27

Tax

GST Calculator

Tax

Student Loan Repayment Calculator

Tax

KiwiSaver Calculator

KiwiSaver

KiwiSaver First Home Withdrawal Calculator

KiwiSaver

Mortgage Repayment Calculator

Mortgage & Property