Holiday Pay Calculator
Estimate annual holiday pay under the New Zealand Holidays Act 2003. There's no single "8% for everyone" rule — how it's worked out depends on your work pattern.
What you're normally paid in a week.
All gross pay incl. overtime, commission & bonuses. Used for average weekly earnings.
| Ordinary weekly pay (OWP) | |
| Average weekly earnings (AWE = 12-mth gross ÷ 52) | |
| Per day (÷ days) | |
| Value of 4 weeks' entitlement |
This is your gross holiday pay — PAYE, ACC and other deductions still apply. Use the pay calculator for take-home.
Pay-as-you-go holiday pay is at least 8% of gross earnings.
Pay-as-you-go 8% is only lawful for genuine casual work or a fixed term of less than 12 months, where it's impractical to give 4 weeks' annual holidays. Most permanent and part-time employees should use the "Regular employee" method instead.
How NZ holiday pay works
Under the Holidays Act 2003, employees get 4 weeks' paid annual holidays after 12 months. When you take annual holidays, they must be paid at the greater of:
- Ordinary weekly pay (OWP) — what you normally earn in a week; and
- Average weekly earnings (AWE) — your gross earnings over the last 12 months divided by 52.
If your pay includes regular overtime, commission or bonuses, AWE is often higher than OWP — which is why both matter.
Limitations: this is a guide, not legal advice. It doesn't cover public holidays, sick or bereavement leave (which use relevant daily pay or average daily pay), variable OWP where a 4-week averaging formula applies, or final-pay/8% accrual on termination. For your exact entitlements see Employment New Zealand.