Employer cost in New Zealand at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 55,659 NZD | 0.0% | 55,659 NZD |
| 100% of AW | 83,073 NZD | 0.0% | 83,073 NZD |
| 167% of AW | 138,732 NZD | 0.0% | 138,732 NZD |
Worked example
The OECD average wage in New Zealand for 2025 is 83,073 NZD (about $56,534 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 0.0%, or 0 NZD. That brings the statutory total to 83,073 NZD a year (6,923 NZD a month), or 40 NZD per hour at 2,080 hours. In 2024 the rate at the average wage was 0.0%, so it was essentially unchanged. The rate stays at about 0.0% even at 167% of the average wage, so it scales with pay.
New Zealand ranks #38 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are low here, so most of the wage wedge falls on the employee side.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in New Zealand?
At the OECD average wage of 83,073 NZD, about 83,073 NZD a year including 0.0% employer social security (2025).
What are employer social security contributions in New Zealand?
About 0.0% of gross pay at the average wage, 0.0% at 67% and 0.0% at 167% of it (OECD model).