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Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

The payroll frequency in New Zealand is bi-monthly/monthly. 

The minimum wages have been revised in New Zealand, with effect from 1 April 2023. The adult minimum wage increases from NZ$21.20 to NZ$22.70 per hour. The starting-out and training minimum wage rates are increased from NZ$16.96 to NZ$18.16 per hour. Similarly, the minimum wage rate for workers who work for eight hours a day, forty hours a week, and eighty-hour fortnight has also been revised. 

All working hours over the standard working hours per week are to be paid as overtime and are regulated by employment contracts or collective agreements. Before commencing, overtime must be mutually agreed upon between the employee and the employer. 

The payment of overtime hours is not a legal requirement; however, they are usually paid at a rate of 150% of the regular salary rate of pay. 

In New Zealand, personnel files must be kept for at least six years. Pay records are kept for seven years.

Tax agency increased rate for FBT 

With effect from April 1, 2023, FBT prescribed interest rate increased to 7.89 percent from 6.71 percent

The stage of the hiring process in New Zealand is as follows:

• Describing the job
• Attracting suitable applicants
• Interviewing
• Choosing the best applicant
• Making the offer and finalizing the employment agreement
• induction and settling the employee into their job

Good induction sets the tone and expectations for the employee’s relationship with their manager and the organization, and helps an employee understand the purpose, functions, and tasks of their job so they can perform at their best.

The employee should feel that they are supported and valued during the induction rather than it being just about the manager ticking off a checklist.

The induction does not have to be completed by one person and doesn’t all have to be done on the first day.

Sometimes, too much information all at once can be hard to take in and retain. The induction can provide information on aspects such as the organisation’s history, values, culture, services offered, customers, staff, policies, practices and expected behaviour.

• The statutory probation period in New Zealand begins on the first day at work and can be for up to 90 days.  

• The actual timeframe will be stipulated in the employment contract and only applies to employees who have not worked for the employer before. 

There are 10 national public holidays in New Zealand:

• January 1 - 3: New Year’s Day 
• Febraury 6: Waitangi Day 
• April 7: Good Friday 
• April 10: Easter Monday 
• April 25: ANZAC Day 
• June 5: Queen’s Birthday
• September 26: Queen Elizabeth II Memorial Day 
• October 23: Labour Day 
• December 25: Christmas Day 
• December 26: Boxing Day

The New Zealand Parliament passed the Holidays Amendment Bill to increase the minimum employee sick leave entitlement from 5 days to 10 days per annum, after six months of continuous employment with their employer.

If an employee already receives ten or more sick days a year, they will not be affected. Under the new law, employees can only carry over ten unused sick days each year to add to their annual entitlement, up to a maximum of 20 days of current entitlement in any year. This applies to full-time, part-time, and fixed-term employees, where that fixed term is longer than six months.

Maternity leave is called Primary Caregiver Leave in New Zealand, and it is accessible to: 

• Female employees who are expecting a child, her partner or spouse, and employees who will permanently be in charge of providing the majority of the care, development, and upbringing for a child under the age of six; this includes adoption but excludes foster care or other temporary care arrangements. If the employee is married or living with a partner, they can decide who will be the main caregiver. 
• Pregnant employees are eligible for 26 weeks of primary care leave and are compensated by the government between 177.00 NZD and 585.80 NZD per week before tax. 
• When it is due for childbirth or when the employee has a child, primary caregiving leave begins on the due date. In any other scenario, primary caregiver leave begins when the employee is named the child's primary caregiver. Up to six weeks (or sooner with the employer's permission) before the baby's due date or the time the employee will take on the role of primary caregiver for the child, the employee may begin their primary carer leave. 

In New Zealand, paternity leave is referred to as partners leave. Partners are entitled to leave beginning 21 days before the baby's due date or the day the employee's partner or spouse assumes primary responsibility for a child under the age of six. This ends 21 days after the baby is born (unless the child is discharged from the hospital more than 21 days after the birth, in which case the partner's leave timeframe ends on the day the child is discharged).

Special Leave: 10 days of unpaid leave, which employees receive for pregnancy-related appointments.

Extended Leave: This is extended unpaid leave given to parents and depends on the amount of time an employee has worked. An employee may be entitled to 52 extra weeks of leave if they have been employed for at least 12 months, and 26 weeks is given to a parent who has been employed for at least six months. 

The term of notice period is given in the employment contract and typically it is between two and four weeks.

Severance payments include the hours worked until the final day and any unused annual leave or days in lieu payments. All details of the payment entitlement are stipulated with the employment agreement and/or negotiated as a part of the leaving package. 

A foreign national may apply for a work visa for the following reasons: 

• a country that has a specific work program,
• a job offer from a New Zealand firm,
• a particular work-related purpose or event, or
• someone who has been studying there

Some work visas can also result in residence, which is the unrestricted right to live, study, and work. 

The New Zealand workforce needs certain skills, experience, and qualifications to apply. 

Temporary work visa for essential talents that allows working for 1 to 5 years. 

From home to office Visas - Temporary visa possibilities that grant residency status after two years of continuous full-time employment. 

Working holiday visas - 12 to 23 months of work and travel are permitted. These visa policies vary depending on where you are from. 

Employee visas with a specific purpose are designed to accomplish a certain goal. These visas normally have a validity of three to twelve months, while multinational personnel occasionally receive three-year visas. 

Relocating business visas are utilized when an employer or corporation moves to New Zealand. 

Additionally, beginning on November 1, 2021, all New Zealand employers who employ foreign workers will need to be certified.

The following legal and background checks are done in New Zealand: 

• Criminal records
• Drug screening- If required for employment
• Credit checks- Depends, on if there is a significant financial risk, such as dealing with accounts or financial administration, the short-listed employee has consented.