NZ holiday pay calculator (annual holidays and final pay)
Work out annual holiday pay in New Zealand under the Holidays Act 2003: the greater of ordinary weekly pay (OWP) and average weekly earnings (AWE), for a week or for part of a week. There's also a final pay calculator for untaken holidays plus 8% since your last anniversary. It matches the worked examples in MBIE's Holidays Act guidance.
Still the law: the Employment Leave Act 2026 replaces the Holidays Act on 6 August 2028. Until then, employers must use the Holidays Act rules below.
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Taking holidaysFinal payWorked examplesFAQ
Pay for annual holidays taken
Holiday pay in your final pay
Worked examples (MBIE Holidays Act guidance)
- Jeanie (varying hours): the last two fortnights' gross pay was $480 + $783.75 = $1,263.75, so her four-week average OWP is $1,263.75 ÷ 4 = $315.94. Her gross earnings for the 12 months were $13,759.87, so AWE is ÷ 52 = $264.61. OWP is higher. For 13 hours' leave, with a 16-hour week, she is paid 13/16 × $315.94 = $256.70.
- Vae (final pay): paid $1,000 a week, leaving with 2 weeks' annual holidays owed ($2,000), a public holiday in that period ($200) and an alternative holiday owed ($200), 12 weeks after her anniversary ($12,000 earned). 8% × ($12,000 + $2,000 + $200 + $200) = $1,152. Total holiday pay $3,552.
- Anna (working full time over summer): $28 an hour, 40 hours a week when she takes leave, so OWP is $1,120, not the $224 of her usual one Saturday a week.
FAQ
How is annual holiday pay calculated in NZ?
Annual holidays are paid at the greater of ordinary weekly pay (what you’re normally paid for a week, or a four-week average if your pay varies) and average weekly earnings (your gross earnings for the last 12 months divided by 52). The rate is worked out at the time you take the leave.
What is the difference between OWP and AWE?
Ordinary weekly pay (OWP) is your usual pay for a working week, including regular allowances and regular overtime. Average weekly earnings (AWE) is 1/52 of all your gross earnings over the last 12 months, including irregular overtime, bonuses and holiday pay. You get whichever is higher.
How is holiday pay calculated when I leave a job?
Any annual holidays you’re owed but haven’t taken are paid at the greater of OWP and AWE. You also get 8% of your gross earnings since your last work anniversary, including the payout for untaken holidays and any public holidays that fall in that period. If you’ve worked there less than 12 months, you get 8% of your gross earnings less any holiday pay already paid.
Can holiday pay be paid as 8% with each pay?
Only in limited cases: for fixed-term agreements under 12 months, or where work is so intermittent or irregular that it isn’t practical to provide 4 weeks’ annual holidays. It has to be agreed and shown separately on the payslip. A regular casual pattern often doesn’t qualify.
When does the Holidays Act change?
The Employment Leave Act 2026 passed on 5 August 2026 and replaces the Holidays Act on 6 August 2028. Until then, holiday pay must still be calculated under the Holidays Act 2003.
Sources (checked 17 Oct 2026): Employment New Zealand (MBIE) Calculating holiday and leave pay; MBIE Holidays Act 2003 guidance (worked examples above); MBIE OWP vs AWE guidance tool; Employment New Zealand Employment Leave Act 2026.
General information, not tax or legal advice. What counts as gross earnings and ordinary weekly pay depends on the employment agreement and payment types. Check MBIE's guidance, or call Employment New Zealand on 0800 20 90 20.