NZ Holiday Pay Calculator
Work out annual leave, public holiday pay, final pay on termination, and casual 8% pay-as-you-go under the New Zealand Holidays Act 2003.
Your usual gross pay for an ordinary working week
Used to calculate Average Weekly Earnings (AWE)
Default 1 week. Annual entitlement is 4 weeks.
How NZ Holiday Pay Works
Under the Holidays Act 2003, permanent employees earn a minimum of 4 weeks paid annual leave per year after 12 months of continuous service. They also receive paid time off on the 11 statutory public holidays, plus statutory sick and bereavement leave.
The Act prescribes specific pay rates depending on the type of leave: weekly rates for annual leave (greater of OWP and AWE), and daily rates for public holidays, sick, and bereavement leave (greater of RDP and ADP).
The Four Calculations
Annual Leave Pay
Paid at the greater of: Ordinary Weekly Pay (OWP — what you normally earn for an ordinary week) and Average Weekly Earnings (AWE — gross earnings ÷ 52). Whichever is higher applies, ensuring overtime, commission, and bonuses are not lost on leave.
Holidays Act 2003 s 21
Public Holiday Pay
If the day is an "otherwise working day" and you don't work, you're paid Relevant Daily Pay (RDP) — or Average Daily Pay (ADP) where RDP can't be determined. If you work, you're paid time and a half on hours worked plus an alternative day off (lieu day).
Holidays Act 2003 ss 49, 50, 56
Final Pay (Termination)
On termination you're paid 8% of gross earnings from your most recent leave anniversary date (the current-year accrual), plus any unused annual leave from prior years paid at the greater of OWP and AWE.
Holidays Act 2003 s 23
Casual 8% Pay-As-You-Go
Genuine casual employees (no predictable work pattern) and fixed-term employees on contracts under 12 months can be paid 8% holiday pay each pay period, itemised separately on the payslip. It cannot be hidden inside the hourly rate.
Holidays Act 2003 s 28
Frequently Asked Questions
What is the minimum holiday entitlement in New Zealand?
Under the Holidays Act 2003, all employees are entitled to a minimum of 4 weeks paid annual leave per year after 12 months of continuous employment. This is in addition to the 11 statutory public holidays, sick leave, and bereavement leave.
How do I calculate Ordinary Weekly Pay (OWP)?
OWP is what an employee is normally paid for an ordinary working week. For salaried employees this is usually annual salary ÷ 52. For hourly employees with regular hours, it's hours per week × hourly rate. For employees with variable hours, the employer uses a 4-week average from the date the leave is taken (Holidays Act s 8).
How do I calculate Average Weekly Earnings (AWE)?
AWE is gross earnings over the previous 52 weeks ÷ 52. 'Gross earnings' includes all taxable wages, overtime, commission, productivity bonuses, and most allowances — but excludes discretionary bonuses, weekly compensation under ACC, and reimbursements (Holidays Act s 14).
Why does annual leave use the greater of OWP and AWE?
The greater-of test ensures that workers with variable income (overtime, commission, bonuses) don't lose out on holiday pay. If you've had a strong year of overtime, AWE will be higher and protects you. If you've had unpaid leave that drags AWE down, OWP protects you. Either way, leave is paid at the better rate.
What is Relevant Daily Pay (RDP) vs Average Daily Pay (ADP)?
RDP is what an employee would have been paid if they'd worked the day in question (for a public holiday, sick day, or bereavement day). ADP is gross earnings ÷ whole-or-part days paid over the previous 52 weeks, used only when RDP cannot be determined or daily pay varies (Holidays Act s 9, s 9A).
Do I get paid for working on a public holiday?
Yes. If you work on a public holiday, you're paid time-and-a-half (1.5×) on the hours actually worked. If the public holiday is also an otherwise working day for you, you also earn an alternative day off (also called a 'day in lieu' or 'lieu day') to take at another time at your normal rate.
Who can be paid 8% holiday pay each period instead of accruing leave?
Pay-as-you-go (8%) is only allowed for two groups: genuine casual employees with no predictable work pattern, and fixed-term employees on contracts shorter than 12 months. The 8% must be itemised as a separate line on the payslip — it cannot be hidden in the hourly rate. If a casual employee develops a regular pattern, they switch to standard 4-weeks accrual.
What happens to my unused leave when I leave a job?
On termination, you receive a final holiday pay calculated as: (a) 8% of your gross earnings since your most recent leave anniversary date, plus (b) any unused annual leave from prior years paid at the greater of OWP and AWE. This final pay must be made in the pay period in which you leave.
Is overtime included in holiday pay calculations?
Regular overtime that forms part of normal earnings is included in gross earnings (and therefore in AWE). Whether it's included in OWP depends on whether it's part of your 'ordinary' working week — case law suggests regular, predictable overtime should be included. Discretionary or one-off overtime typically isn't.
How many public holidays are there in New Zealand?
There are 11 statutory public holidays per year: New Year's Day, the day after New Year's Day, Waitangi Day (6 Feb), Good Friday, Easter Monday, ANZAC Day (25 Apr), King's Birthday (1st Mon Jun), Matariki, Labour Day (4th Mon Oct), Christmas Day, and Boxing Day. There are also regional Anniversary Days observed by region.
Sources
Holiday pay rules from Employment New Zealand — Calculating payments for leave and holidays and the Holidays Act 2003 .
Last updated April 2026. This calculator implements Holidays Act 2003 sections 21, 23, 28, 49, 50, and 56. It is for informational purposes only — consult Employment New Zealand or a workplace relations adviser for case-specific guidance.