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Nanny / Au Pair Payroll Calculator

Calculate the true cost of hiring a nanny in NZ as an IR56 household employer. Includes PAYE, KiwiSaver 3.5% employer, ACC domestic levy, and holiday pay.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Data stays on your deviceIRD sourced data

About this calculator

This calculator implements IRD IR56 household employer rules + NZ Nanny Association rates from Pay The Nanny + IRD IR56. Last consulted 18 May 2026. Verify the figures yourself by following the link.

NZ nanny / au pair payroll rules

FY 2026-27 IRD IR56 rules
  • •Typical nanny hourly rate 2026: $30-35/hr gross
  • •Au pair weekly + room/board: $200-300/wk + nohonga
  • •Min wage 2026: $23.95/hr (must pay above)
  • •Household employer ACC CU: 97000 (~0.53% work levy)
  • •Employer KiwiSaver (if opted in): 3.5% on top of wages
  • •Holiday pay accrual: 8% of gross
  • •PAYE filing frequency (IR56): Twice monthly

Source: IRD — IR56 household employer

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 nanny payroll cost is calculated

IR56 household employer: pay wages + employer KS + ACC domestic levy + holiday pay accrual.

  1. 1

    Annual gross wages

    Gross = hourly × hours_per_week × 52

    Must be above min wage $23.95/hr.

  2. 2

    Employee deductions

    Net_to_nanny = gross − PAYE − ACC_earner_1.75% − KiwiSaver_3.5%

    You deduct and pay to IRD twice monthly.

  3. 3

    Employer obligations

    Employer_costs = gross × 3.5% (KS) + gross × 0.53% (ACC domestic CU 97000)

    Plus 8% holiday pay accrual on top.

  4. 4

    True total cost

    Total = gross + employer_KS + employer_ACC + holiday_pay_accrual

    Effective hourly = total ÷ (hours × 52).

Worked example

Inputs: $32/hr × 40hr/wk, opted in KS, 4wk leave

Result: Gross $66.6k. Employer KS $2.3k + ACC $353. Total $69.2k. Effective $33.29/hr.

Frequently Asked Questions

Am I a household employer if I hire a nanny?
Yes — if you pay someone to work in your home (nanny, au pair, gardener, cleaner) and direct their work (you tell them what to do, when), you're an employer under NZ law. Register with IRD as an IR56 household employer. You must deduct PAYE, ACC, KiwiSaver from their wages, file PAYE returns twice a month, and provide holiday pay (8% of gross). Pay The Nanny (paythenanny.nz) handles this for ~$50/month. Source: IRD.
What's the typical NZ nanny rate?
NZ Nanny Association 2026 guidance: $30-35/hr gross for experienced full-time nannies. Au pairs (typically European backpackers): $200-300/wk + room + board. Mother's help / part-time: $25-30/hr. Always pay above minimum wage ($23.95/hr in 2026). KiwiSaver employer contribution is 3.5%. Source: NZ Nanny Association.

The nanny payroll calculator works out the true cost of employing a nanny or au pair in New Zealand as an IR56 household employer — wages, PAYE, the ACC domestic work levy, employer KiwiSaver at 3.5%, and the 8% holiday pay accrual.

How this calculator works

Hiring a nanny makes you a household employer: you register with IRD as an IR56 employer, deduct PAYE, ACC earner's levy, and (if they opt in) KiwiSaver from each pay, and file returns twice monthly. Your costs do not stop at the gross wage. On top you pay employer KiwiSaver of 3.5%, the ACC work levy for domestic staff (classification unit 97000, about $0.53 per $100 of wages), and holiday pay accrues at 8% of gross for annual leave. The calculator produces the nanny's net pay from their perspective and your true total cost per hour from yours. Wages must meet the adult minimum of $23.95/hour; the 2026 market rate for experienced nannies is $30-35. Services such as Pay The Nanny handle the IR56 filing for a fee if you prefer not to run payroll yourself.

IR56 household employer obligations 2026-27

Adult minimum wage$23.95/hour
Market nanny rate 2026$30 - $35/hour gross
Employer KiwiSaver (if opted in)3.5% on top of wages
ACC work levy (domestic, CU 97000)~$0.53 per $100 of wages
Holiday pay accrual8% of gross
PAYE filing (IR56)Twice monthly
Au pair typical package$200-300/week plus room and board

Worked Examples

Nanny at $32/hour, 40 hours/week, opted into KiwiSaver

True employer cost ≈ $69,200/year — an effective $33.29/hour against the $32 headline rate.

  1. Gross wages: $32 × 40 × 52 = $66,560
  2. Employer KiwiSaver: $66,560 × 3.5% = $2,330
  3. ACC domestic levy: $66,560 × 0.53% = $353
  4. Total: ≈ $69,240 → effective $33.29/hour
  5. Plus 8% holiday pay accruing: ≈ $5,325/year set aside for leave

Part-time nanny at $30/hour, 25 hours/week, opted into KiwiSaver

True employer cost ≈ $40,570/year — effective $31.21/hour.

  1. Gross wages: $30 × 25 × 52 = $39,000
  2. Employer KiwiSaver: $39,000 × 3.5% = $1,365
  3. ACC domestic levy: $39,000 × 0.53% = $207
  4. Total: ≈ $40,572 → effective $31.21/hour

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

Last reviewed:

Official Sources

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