Back to Pay & Salary

Overtime Calculator

Calculate time-and-a-half and double-time rates for overtime, public holidays, and weekend work. Based on your employment agreement terms.

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

About this calculator

This calculator implements overtime pay rules (no statutory rate) from Employment New Zealand. Last consulted 2 April 2026. Verify the figures yourself by following the link.

Current NZ overtime conventions

No statutory overtime — set by employment agreement
  • Time-and-a-half (most common): 1.5× ordinary rate
  • Double time (Sundays, public holidays): 2.0× ordinary rate
  • Triple time (rare, special agreements): 3.0× ordinary rate
  • Adult minimum hourly: $23.95/hr (from 1 Apr 2026)
  • Standard work week: 40 hours (no statutory cap)

Source: Employment NZ — Overtime

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 overtime pay is calculated in NZ

Unlike many countries, NZ has no statutory overtime rate — it's set by your employment agreement. Common rates are time-and-a-half (1.5×) for weekday overtime and double-time (2×) for Sundays/public holidays.

  1. 1

    Identify ordinary hourly rate

    Hourly_rate = annual_salary ÷ (weekly_hours × 52)  OR  use stated hourly rate

    If you're salaried, divide annual salary by your contracted hours per week × 52 weeks.

  2. 2

    Calculate overtime pay

    Overtime = ordinary_rate × multiplier × overtime_hours

    Common multipliers: 1.5× (time-and-a-half), 2× (double time), 3× (triple).

  3. 3

    Add to gross pay

    Total gross = (ordinary_rate × ordinary_hours) + (ordinary_rate × multiplier × overtime_hours)

    Overtime is taxed exactly like regular pay — PAYE, ACC, KS apply to the total gross.

Worked example

Inputs: $30/hr ordinary rate, 40 hours normal + 5 hours at 1.5×

Result: Normal: 40 × $30 = $1,200. Overtime: 5 × $30 × 1.5 = $225. Weekly gross: $1,425.

Frequently Asked Questions

Is overtime pay mandatory in NZ?
In New Zealand, there is no statutory requirement to pay a higher rate for overtime hours. Unlike countries such as the United States or Australia (which have minimum overtime rates set in awards), New Zealand's Employment Relations Act 2000 does not prescribe a specific overtime premium. Whether overtime is paid, and at what rate, is entirely determined by your employment agreement. Many employment agreements do provide for overtime rates — typically time-and-a-half (1.5*) or double time — but this is by contract, not law. The minimum wage applies to all hours worked, including overtime, so employers cannot pay below the minimum wage regardless of the arrangement. If your employment agreement is silent on overtime, your employer is not legally required to pay extra, but must pay at least the minimum wage for every hour. Source: Employment New Zealand — Hours of Work (employment.govt.nz).
How is overtime calculated in NZ?
Overtime in New Zealand is calculated according to the terms of your employment agreement, as there is no legally prescribed rate. The most common rates are time-and-a-half (1.5 times your ordinary hourly rate) and double time (2 times your ordinary rate). To calculate time-and-a-half: if your ordinary rate is $28/hour, your overtime rate is $28 * 1.5 = $42/hour. Some agreements specify a flat rate for overtime hours, or a different multiplier. If your agreement is silent, any additional payment is at the employer's discretion — though you must always receive at least the adult minimum wage (currently $23.95/hour as of April 2026). Salaried employees should check whether their agreement specifies that their salary covers all reasonable overtime or whether a separate overtime payment applies. Source: Employment New Zealand — Overtime (employment.govt.nz).
What is time-and-a-half in NZ?
Time-and-a-half means being paid 1.5 times your ordinary hourly rate for overtime or public holiday work. In New Zealand, it is the most commonly agreed overtime premium and is often the default rate in collective agreements and many individual employment agreements. For example, if you earn $25.00/hour ordinarily, time-and-a-half is $37.50/hour. Working on a public holiday is a specific NZ entitlement: the Holidays Act 2003 requires that if you work on a public holiday, you must be paid at least time-and-a-half for the hours worked, plus an alternative holiday (a day in lieu) if that day would otherwise have been a working day for you. This public holiday entitlement is a statutory right and applies regardless of what your employment agreement says. Source: Employment New Zealand — Public Holidays (employment.govt.nz) and Holidays Act 2003.
Are there legal overtime limits in NZ?
New Zealand does not have statutory limits on the number of overtime hours an employee can work, unlike some countries with strict maximum working hours laws. The Employment Relations Act 2000 requires that working hours be agreed between employer and employee and recorded in the employment agreement, and that those hours be reasonable. What constitutes 'reasonable hours' is not numerically defined in the Act but is informed by health and safety obligations under the Health and Safety at Work Act 2015 — employers have a duty to ensure the workplace does not expose workers to unnecessary risk, including fatigue. The 40-hour standard working week is a common contractual norm, but not a legal maximum. Young people under 16 working in certain sectors have additional protections. Employees experiencing unsafe workloads can raise a personal grievance. Source: Employment New Zealand — Working Hours (employment.govt.nz).

New Zealand law does not prescribe a statutory overtime rate — the rate depends on your individual employment agreement. Common overtime rates are 1.5× (time-and-a-half) or 2× (double time). Employers must ensure total pay for any period does not fall below the minimum wage.

How this calculator works

Overtime pay = overtime hours × hourly rate × multiplier. For hourly workers the calculation is straightforward. For salaried workers, first calculate your effective hourly rate: annual salary ÷ 52 ÷ contracted weekly hours, then apply the agreed multiplier. Always check your employment agreement for the overtime rate and any maximum hours provisions.

NZ Overtime Reference Rates 2026-27

Adult minimum wage$23.95 per hour
Starting-out / training wage$19.16 per hour
Statutory overtime rateNone — set by employment agreement
Common overtime rate1.5× (time-and-a-half)
Common overtime rate (special)2× (double time, e.g. public holidays)
Maximum hoursNo statutory limit, but reasonable and agreed in contract

Public holidays worked are paid at at least 1.5× ordinary pay plus an alternative holiday.

Worked Examples

Hourly worker at $25/hr works 5 hours overtime at time-and-a-half

Overtime pay: $187.50.

  1. Overtime hourly rate: $25 × 1.5 = $37.50
  2. Overtime pay: 5 hours × $37.50 = $187.50
  3. Total pay for period including overtime = regular hours pay + $187.50

Salaried employee at $78,000/year (40-hr week) works 10 hours overtime at 1.5×

Overtime pay: $562.50.

  1. Effective hourly rate: $78,000 / 52 / 40 = $37.50/hr
  2. Overtime rate: $37.50 × 1.5 = $56.25/hr
  3. Overtime pay: 10 hours × $56.25 = $562.50
  4. Before accepting overtime, confirm your employment agreement specifies the 1.5× rate

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

Last reviewed: