True Cost Of Employee Calculator Nz

Total Cost = Salary + KiwiSaver (3%) + ACC + Holiday Pay

\[ Total Cost = Salary + (Salary \times 0.03) + (Salary \times ACC Rate) + Holiday Pay \]

Salary (NZD):

NZD

KiwiSaver (%):

ACC (%):

Holiday Pay (NZD):

NZD

Total Cost (NZD):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What Is The True Cost Of Employee Calculator?

The True Cost of Employee Calculator helps New Zealand employers calculate the total cost of employing staff, including salary, KiwiSaver contributions, ACC levies, and holiday pay obligations.

2. How Does The Calculator Work?

The calculator uses the following formula:

\[ Total Cost = Salary + (Salary \times KiwiSaver\%) + (Salary \times ACC\%) + Holiday Pay \]

Where:

\( Salary \) — Base annual salary in NZD
\( KiwiSaver\% \) — Employer KiwiSaver contribution percentage (typically 3%)
\( ACC\% \) — ACC levy percentage based on industry risk
\( Holiday Pay \) — Additional holiday pay entitlement

Explanation: This calculation provides the true cost to employers beyond just the base salary, accounting for mandatory contributions and entitlements under New Zealand employment law.

3. Importance Of Calculating True Employee Cost

Details: Understanding the true cost of employment is essential for accurate business budgeting, financial planning, and compliance with New Zealand employment regulations including KiwiSaver and ACC obligations.

4. Using The Calculator

Tips: Enter the base salary in NZD, KiwiSaver percentage (default 3%), ACC levy percentage for your industry, and any additional holiday pay. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard KiwiSaver employer contribution?
A: The minimum employer contribution is 3% of the employee's gross salary or wages.

Q2: How is ACC levy calculated?
A: ACC levies vary by industry risk and are calculated as a percentage of employee earnings. Check the ACC website for current rates.

Q3: Is holiday pay included in the base salary?
A: No, holiday pay is an additional entitlement calculated separately from the base salary.

Q4: Are there other employment costs not included?
A: This calculator covers major mandatory costs. Additional costs may include sick leave, training, equipment, and office space.

Q5: Can this calculator be used for contract workers?
A: No, this calculator is designed for permanent employees. Contract workers have different cost structures.