{"id":32747,"date":"2023-11-15T13:40:09","date_gmt":"2023-11-15T03:40:09","guid":{"rendered":"https:\/\/employmenthero.com\/nz\/blog\/understanding-accrued-leave-in-new-zealand\/"},"modified":"2025-09-05T01:59:26","modified_gmt":"2025-09-05T01:59:26","slug":"understanding-accrued-leave-in-new-zealand","status":"publish","type":"post","link":"https:\/\/employmenthero.com\/nz\/blog\/understanding-accrued-leave-in-new-zealand\/","title":{"rendered":"Understanding accrued leave in New Zealand"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull sticky-blog-template has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group alignfull blog-template-header has-neutral-100-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--16)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained 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C5.20097822,13.2064956 5.34697566,13.1875473 5.49176982,13.1613904 C6.61362375,12.9593437 7.63039162,12.3585585 8.36398864,11.4636626 L9.59594229,9.94923914 C10.0136795,9.43578101 9.94709821,8.67146367 9.44693666,8.24224316 C8.94677511,7.81302264 8.20254916,7.8816073 7.78481199,8.39527139\" id=\"Fill-4\" fill=\"#000000\" mask=\"url(#mask-4)\"><\/path> <\/g> <\/g> <\/g> <\/g> <\/svg> \n    <\/span>\n            <span class=\"eh-social-sharing-button__copied_text\">\n            URL copied for sharing!        <\/span>\n    <\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\"><h1 class=\"blog-template-title wp-block-post-title\">Understanding accrued leave in New Zealand<\/h1><\/div>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--9);padding-bottom:var(--wp--preset--spacing--9);\" class=\"blog-template-sub-title wp-block-post-excerpt\"><p class=\"wp-block-post-excerpt__excerpt\">Find out how leave accrual works, as well as how to calculate holiday pay in final pay. <\/p><\/div>\n\n\n<div class=\"wp-block-group blog-template-meta-row is-layout-flex wp-container-core-group-is-layout-8 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-query wp-block-hosts-query has-global-padding is-content-justification-left is-layout-constrained wp-container-core-query-is-layout-1 wp-block-query-is-layout-constrained\"><ul data-wp-interactive=\"eh-hosts\" class=\"wp-block-post-template is-layout-flow wp-container-core-post-template-is-layout-1 wp-block-post-template-is-layout-flow\"><li data-host-index=\"0\" data-wp-on--click=\"actions.openDetail\" class=\"wp-block-post post-20949 hosts type-hosts status-publish has-post-thumbnail hentry\">\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-7 wp-block-group-is-layout-flex\"><figure style=\"width:52px;height:52px;\" class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-120x120.png\" class=\"attachment-host_thumbnail size-host_thumbnail wp-post-image\" alt=\"\" style=\"border-radius:60px;height:52px;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-120x120.png 120w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-300x300.png 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-150x150.png 150w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-240x240.png 240w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-54x54.png 54w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-108x108.png 108w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-390x390.png 390w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-200x200.png 200w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-400x400.png 400w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-216x216.png 216w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-432x432.png 432w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-112x112.png 112w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-224x224.png 224w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-142x142.png 142w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-284x284.png 284w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9.png 625w\" sizes=\"auto, (max-width: 120px) 100vw, 120px\" \/><\/figure>\n\n\n<div class=\"wp-block-group has-sm-font-size is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-6 wp-block-group-is-layout-flex\"><h6 style=\"line-height:1.3; border-right-width:1px;border-right-color:var(--wp--preset--color--black); padding-right:var(--wp--preset--spacing--2);\" class=\"has-text-align-center has-link-color wp-elements-1e20e747939e3458765ab321928f59b7 wp-block-post-title has-text-color has-violet-500-color has-sm-font-size\">Jen Denny<\/h6><\/div>\n<\/div>\n\n<\/li><\/ul><\/div>\n\n\n\n<p class=\"wp-block-employmentherocom2025-custom-post-date has-sm-font-size\">\n    <span>Last Updated<\/span>&nbsp;<time datetime=\"2025-09-05T01:59:26+00:00\">Sep 5, 2025<\/time>\n<\/p>\n\n\n\n<p class=\"has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\">18 mins read<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull blog-image-container has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\"><figure style=\"width:864px;\" class=\"blog-template-image wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1728\" height=\"1014\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1.png\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Woman sits at desk in her home study, typing on a laptop\" style=\"object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1.png 1728w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-300x176.png 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-1024x601.png 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-768x451.png 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-1536x901.png 1536w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-864x508.png 864w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/2-copy-1-440x258.png 440w\" sizes=\"auto, (max-width: 1728px) 100vw, 1728px\" \/><\/figure><\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-15 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" id=\"content-wrapper\">\n<div class=\"content-single-table-content\"><\/div>\n\n\n\n<div class=\"wp-block-group content_single content_single--blog content-single-content-wysiwyg wysiwyg content-wrapper has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--4)\">\n<div class=\"wp-block-group content_single content_single--blog content-single-content-wysiwyg wysiwyg content-wrapper has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--4)\">\n<p>There are plenty of terms and descriptions to get your head around when running payroll. One such example is in leave management, where calculations of accrued and advanced leave can be tricky to understand. <\/p>\n\n\n\n<p>We\u2019re here to break down the types of leave you need to be across, as well as how annual leave is calculated throughout employment and what to do with those leave balances if an employee exits your organisation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"types-of-leave-in-new-zealand\">Types of leave in New Zealand<\/h2>\n\n\n\n<p>All employees in New Zealand, regardless of whether their role is full-time, part-time or casual, are entitled to the following types of leave. The only exception applies to employees in the Armed Forces. <\/p>\n\n\n\n<p><strong>Annual leave<\/strong> <\/p>\n\n\n\n<p>Employees are entitled to four weeks of <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/annual-holidays\/\" target=\"_blank\" rel=\"noopener\">annual leave<\/a> after 12 months of continuous employment for a single employer. <strong>This type of leave is sometimes accrued<\/strong> \u2013 we\u2019ll get to how that works later. <\/p>\n\n\n\n<p>In limited circumstances some employees may be paid holiday pay at the rate of not less than 8% of their gross earnings with their regular pay instead of being provided with four weeks\u2019 annual holidays each year. This is if the employee works so intermittently or irregularly that it is impractical for the employer to provide them with four weeks\u2019 annual holidays. <\/p>\n\n\n\n<p><strong>Public holidays<\/strong> <\/p>\n\n\n\n<p>Employees get a paid day off on <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/public-holidays\/\" target=\"_blank\" rel=\"noopener\">public holidays<\/a> if it\u2019s otherwise a working day for them, and are entitled to a maximum of 12 public holidays a year. If they have to work a public holiday due to stipulations in their employment agreement and it is an otherwise working day for them, they are entitled to an alternative day off. <\/p>\n\n\n\n<p><strong>Sick leave<\/strong> <\/p>\n\n\n\n<p>Employees can use up to 10 days of paid <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/sick-leave\/\" target=\"_blank\" rel=\"noopener\">sick leave<\/a> per year, provided they\u2019ve worked for the same employer for at least six months, or if they have worked for the employer for six months for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An average of 10 hours per week, and<\/li>\n\n\n\n<li>At least one hour in every week or 40 hours in every month.<\/li>\n<\/ul>\n\n\n\n<p><strong>Bereavement leave<\/strong> <\/p>\n\n\n\n<p>Employees who have worked for an employer for at least six months can take up to three days of <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/bereavement-leave\/\" target=\"_blank\" rel=\"noopener\">bereavement leave<\/a> in the event of an immediate family member\u2019s death, or one day for other bereavements. Workplaces will often volunteer more, depending on the situation. <\/p>\n\n\n\n<p><strong>Parental leave<\/strong> <\/p>\n\n\n\n<p>Parental leave entitlements in New Zealand can vary depending on whether the employee meets certain eligibility criteria, and if they\u2019re the primary carer or partner. <a href=\"https:\/\/employmenthero.com\/nz\/blog\/guide-to-parental-leave\/\" target=\"_blank\" rel=\"noopener\">Check out our explainer here<\/a> for the full details. <\/p>\n\n\n\n<p><strong>Family violence leave<\/strong> <\/p>\n\n\n\n<p>Employees affected by family violence can take up to 10 days of <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/family-violence-leave\/\" target=\"_blank\" rel=\"noopener\">family violence leave<\/a> and ask for short-term flexible working arrangements for up to three months. To be eligible, they have to have worked for their employer for at least six months. <\/p>\n\n\n\n<p><strong>Other types of leave<\/strong> <\/p>\n\n\n\n<p>There are a number of types of leave that may apply, depending on the situation and the company itself. That includes stress leave, garden leave, leave without pay, long service leave and birthday leave. These are not legally required but can be offered by the employer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-accrued-leave-works\">How accrued leave works<\/h2>\n\n\n\n<p>Accrued leave in New Zealand typically refers to a type of annual leave that is earned over the course of employment. There is no mention of accrual in employment legislation \u2013 but it\u2019s a common process for employers when they are monitoring the amount of leave an employee is entitled to. <\/p>\n\n\n\n<p>Annual leave goes through phases in an employee\u2019s time at work. Depending on when they choose to take the leave and what their current leave balance is, they could be using accrued leave, entitled leave or advanced leave. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"accrual-rate\">Accrual rate<\/h3>\n\n\n\n<p>\nThe legal minimum entitlement for annual leave in New Zealand is four weeks per year for full-time and part-time employees.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"starting-accrual\">Starting accrual<\/h3>\n\n\n\n<p>Employees usually begin accruing leave from their first day in the role, but they are not entitled to use that leave until they\u2019ve completed their first 12 months with the employer. <\/p>\n\n\n\n<p>Once they have reached the 12 month anniversary of their employment, the total accrued leave becomes <strong>entitled leave<\/strong>, and the accrual balance starts again from zero. <\/p>\n\n\n\n<p>For example, a full-time employee who has worked their first full year for an employer without taking any annual leave will have an entitled leave balance of four weeks on their anniversary. They will then be able to use that entitled leave the following year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"advanced-leave\">Advanced leave<\/h3>\n\n\n\n<p>For most new employees, it&#8217;s fairly unlikely that they\u2019ll go the full first year of employment without taking some annual leave. In that case, if they want to take leave it\u2019ll have to be <strong>advanced leave<\/strong>. This kind of leave is in advance of their next year\u2019s entitlement. <\/p>\n\n\n\n<p>For example, if an employee was to take five days leave in their first year of employment, when their anniversary rolls around they would have accrued 15 days annual leave, instead of 20 days. That will leave them with 15 days entitled leave to use in the next year. <\/p>\n\n\n\n<p>This same scenario applies to employees who are past their first year anniversary but who have used up all their entitled leave for the year. In that case, they would take advanced leave, to be taken off the following year\u2019s total accrued balance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"recording-accrued-leave\">Recording accrued leave<\/h3>\n\n\n\n<p>\nIt\u2019s important for employers to note that all leave accrued, taken and paid out needs to be recorded, and those records should be kept safe and accessible for seven years. This is <a href=\"https:\/\/www.employment.govt.nz\/hours-and-wages\/keeping-accurate-records\/\" rel=\"noopener\" target=\"_blank\">crucial for compliance<\/a> with the Employment Relations Act 2000 and the Holidays Act 2003.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"employment-agreements\">Employment agreements<\/h3>\n\n\n\n<p>This structure of leave entitlements, accrual and expenditure doesn\u2019t necessarily apply to everyone. There may be special circumstances, such as in collective employment agreements or individual agreements, that affect annual leave entitlements. <\/p>\n\n\n\n<p>As an example, if an employee is on a short-term fixed-term contract, or they work so intermittently that makes it impossible for the employer to provide them with four weeks of annual leave, they may agree to be paid annual holiday pay with their pay. This is known as <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/annual-holidays\/annual-holidays-entitlements\/\" target=\"_blank\" rel=\"noopener\">pay-as-you-go holiday pay<\/a>. <\/p>\n\n\n\n<p>If you\u2019re unsure what applies in your situation, seek professional advice.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/11\/1-copy.png\" alt=\"A person visible only by their arms sits at a desk, writing notes in one hand and typing on a calculator in another. They have a tablet in front of them\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-calculate-leave-in-final-termination-pay\">How to calculate leave in final (termination) pay<\/h2>\n\n\n\n<p>\nIf an employee is leaving your organisation, they must receive their final wages and holiday pay in their pay for the final period of employment. This applies to any employee, regardless of their reason for leaving their role.\n\nFiguring out holiday pay can be challenging, as it varies by the type of leave taken and accrued. Here\u2019s how it works\u2026\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"calculating-annual-leave\">Calculating annual leave<\/h3>\n\n\n\n<p>\nThe amount that an employee receives for remaining annual leave in their final pay depends on <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/calculating-payments-for-leave-and-holidays\/calculating-payment-for-leave-and-holidays-in-final-pay\/\" rel=\"noopener\" target=\"_blank\">when their employment ends<\/a>.\n\nIf the employment ends<strong> before<\/strong> the employee is entitled to annual leave (ie. before 12 months of employment for a full-time worker) the employee gets an annual holiday payment of 8% of their gross earnings, less any amount the employee has been paid for:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual holidays taken in advance.<\/li>\n\n\n\n<li>Annual holidays on a pay-as-you-go basis..<\/li>\n<\/ul>\n\n\n\n<p>\nIf the employment ends <strong>after<\/strong> the employee is entitled to annual leave, the employee is paid for any remaining annual leave they are entitled to. This is paid at the normal rate, as if the holidays were being taken at the end of employment.\n\nThe employee is also given an annual leave payment of 8% of their gross earnings since their last anniversary date, less any amount the employee has been paid for:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual holidays taken in advance.<\/li>\n\n\n\n<li>Annual holidays on a pay-as-you-go basis.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"calculating-public-holidays\">Calculating public holidays<\/h3>\n\n\n\n<p>\nSome employees <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/calculating-payments-for-leave-and-holidays\/calculating-payment-for-leave-and-holidays-in-final-pay\/\" rel=\"noopener\" target=\"_blank\">may be entitled<\/a> to be paid for public holidays that occur after their employment has finished. This happens when the employee has unused annual leave that they\u2019re entitled to. It doesn\u2019t apply for employees who haven\u2019t yet completed 12 months of employment as they haven\u2019t yet become entitled to any leave.\n\nTo determine if an employee is eligible for paid public holidays occurring after their employment has ended, follow these steps:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Treat any remaining annual holidays owed to the employee as if they were taken immediately after the termination of their employment.<\/li>\n\n\n\n<li>The employee should receive payment for a public holiday if it meets the following criteria:\n<ul class=\"wp-block-list\">\n<li>It falls within the time frame created by adding their remaining annual leave to the end of their employment.<\/li>\n\n\n\n<li>It occurs on a day that the employee would have normally worked if they were still employed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>If the employee is entitled to payment for a public holiday, the duration covered by the annual leave is extended by one day for each public holiday they are entitled to be paid for.\n<ul class=\"wp-block-list\">\n<li>This newly extended period may include additional public holidays that also need to be considered for payment.<\/li>\n\n\n\n<li>Payment for any public holidays is calculated using the standard method, based on the relevant daily pay or average daily pay (if applicable) for that day.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>\n\nIf the employee has previously worked a public holiday and still has an untaken alternative day off, that alternative day should be paid out as well.\n\nAny unused alternative leave that is paid out is based on the employee&#8217;s last day of employment i.e. the employee may normally work 8 hours per day but on their last day of employment they only worked 4 hours so the alternative leave only has to be paid for 4 hours.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"sick-leave-and-bereavement-leave\">Sick leave and bereavement leave<\/h3>\n\n\n\n<p>\nThere is no <a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/calculating-payments-for-leave-and-holidays\/calculating-payment-for-leave-and-holidays-in-final-pay\/\" rel=\"noopener\" target=\"_blank\">legal requirement<\/a> for employers to pay out unused sick or bereavement leave when an employee exits their organisation. However, some employers may choose to pay out some or all of the employee\u2019s unused sick leave entitlement.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"example-a-final-payment-including-multiple-leave-types\">Example: A final payment including multiple leave types<\/h3>\n\n\n\n<p>\nJason finishes work on Friday 16 October. Jason has been paid up to Tuesday 6 October. He has three days\u2019 unused alternative holidays and is entitled to four weeks\u2019 paid annual holidays. He last became entitled to annual holidays on 25 June. Jason\u2019s final payment is made up of:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>His pay for the period worked since the previous pay period, (eight days\u2019 pay for Wednesday 10 October through to Friday 16 October).<\/li>\n\n\n\n<li>Payment of four weeks\u2019 annual holiday pay calculated at the rate of the greater of ordinary weekly pay or average weekly earnings.<\/li>\n\n\n\n<li>Payment for his three accrued alternative holidays for working on Friday 16 October at the rate of relevant daily pay or average daily pay (if applicable).<\/li>\n\n\n\n<li>An additional day\u2019s payment for Labour Day at relevant daily pay or average daily pay (if applicable). This is because it falls during the four weeks\u2019 notional annual holidays extension added to the end of his employment to reflect annual holidays entitlement owing.<\/li>\n\n\n\n<li>8% of his gross earnings since 25 June.<\/li>\n<\/ul>\n\n\n\n<p>\nThese gross earnings include:\n<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The four weeks\u2019 annual holidays paid out.<\/li>\n\n\n\n<li>The payment for the alternative holidays.<\/li>\n\n\n\n<li>The payment for the public holiday.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/www.employment.govt.nz\/leave-and-holidays\/calculating-payments-for-leave-and-holidays\/calculating-payment-for-leave-and-holidays-in-final-pay\/\" rel=\"noopener\" target=\"_blank\"><strong>Source: Employment NZ<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"confused-about-payroll-we-can-help\">Confused about payroll? We can help.<\/h2>\n\n\n\n<p>Organising leave balances and final pay calculations doesn\u2019t need to be a headache. 91爆料&#8217;s <a href=\"https:\/\/employmenthero.com\/nz\/products\/payroll-software\/\">Payroll Software<\/a> automates your manual tasks, supports <a href=\"https:\/\/employmenthero.com\/nz\/solutions\/payday-filing\/\">payday filing<\/a> and helps you manage your payroll and <a href=\"https:\/\/employmenthero.com\/nz\/solutions\/leave-management-software\/\">leave management<\/a> in one easy-to-access place. It\u2019s payroll software made with Kiwi businesses in mind. With 91爆料 Payroll, you\u2019ll have access to: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automated payroll reporting to IRD<\/li>\n\n\n\n<li>Automated leave balances<\/li>\n\n\n\n<li>Custom rule sets<\/li>\n\n\n\n<li>Smart payroll integrations<\/li>\n\n\n\n<li>Real time reporting<\/li>\n\n\n\n<li>And much, much more\u2026.<\/li>\n<\/ul>\n\n\n\n<p>\nIf you want to find out more about how 91爆料 Payroll can support your business, <a href=\"https:\/\/employmenthero.com\/nz\/request-a-demo\/\" rel=\"noopener\" target=\"_blank\">get in touch with one of our team today<\/a>.\n<\/p>\n\n\n\n<p class=\"legal\"><em>Disclaimer: The information in this blog is current as at 10 November 2023, and has been prepared by 91爆料 Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (91爆料). The views expressed in this blog are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91爆料 does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this guide. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this blog.<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/employmenthero.com\/nz\/request-a-demo\/\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:300px\">\n<div class=\"wp-block-group right-sticky-side-panel has-global-padding is-layout-constrained wp-block-group-is-layout-constrained wp-container-2 is-position-sticky\">\n    <div class=\"top-sticky-form is-layout-flow wp-block-marketo-form-is-layout-flow\" class=\"wp-block-employmentherocom2025-marketo-form\">\n        <div class=\"right-sidebar-wrapper\">\n            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class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--20);padding-bottom:var(--wp--preset--spacing--20)\">\n<div class=\"wp-block-group is-content-justification-space-between is-layout-flex wp-container-core-group-is-layout-16 wp-block-group-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--10)\">\n<h3 class=\"wp-block-heading\">Related Resources<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link-arrow is-style-link-arrow--3\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"\/resources\/?topic%5B0%5D%5B0%5D=Product\">View all<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-query blog-3-col-query-loop is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"columns-3 alignfull wp-block-post-template is-layout-grid wp-container-core-post-template-is-layout-2 wp-block-post-template-is-layout-grid\"><li class=\"wp-block-post post-57112 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-19 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Time to productivity: Why onboarding speed matters\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers.webp 1600w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-300x169.webp 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-1024x576.webp 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-768x432.webp 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-1536x864.webp 1536w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-3 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-18 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-17 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/nz\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\" >Time to productivity: Why onboarding speed matters<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-2\"><p class=\"wp-block-post-excerpt__excerpt\">Do you know what a slow onboarding process is costing you? Discover how faster onboarding boosts productivity and drives better&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Time to productivity: Why onboarding speed matters<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-57023 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-22 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-to-match-candidates-with-job-descriptions\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-job-descriptions-thumbnaik-1024x576-1.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"How to use AI to match candidates with job descriptions\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-job-descriptions-thumbnaik-1024x576-1.webp 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-job-descriptions-thumbnaik-1024x576-1-300x169.webp 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-job-descriptions-thumbnaik-1024x576-1-768x432.webp 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-job-descriptions-thumbnaik-1024x576-1-440x248.webp 440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-6 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-21 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-20 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/nz\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-to-match-candidates-with-job-descriptions\/\" target=\"_self\" >How to use AI to match candidates with job descriptions<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-5\"><p class=\"wp-block-post-excerpt__excerpt\">AI resume matching aligns candidate skills with role requirements automatically, saving hiring teams hours. Here&#8217;s how it works and how&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-to-match-candidates-with-job-descriptions\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: How to use AI to match candidates with job descriptions<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-to-match-candidates-with-job-descriptions\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-56985 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-25 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"AI performance reviews: How to use AI to give better feedback\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail.webp 1600w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail-300x169.webp 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail-1024x576.webp 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail-768x432.webp 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail-1536x864.webp 1536w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/AI-performance-review-thumbnail-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-9 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-24 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-23 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/nz\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\" >AI performance reviews: How to use AI to give better feedback<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-8\"><p class=\"wp-block-post-excerpt__excerpt\">Contents Performance reviews take more out of managers than most businesses realise. Pulling together months of notes, writing fair and&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: AI performance reviews: How to use AI to give better feedback<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><\/ul><\/div>\n<\/div>\n<\/div>\n\n\n\n<style>\n.wp-block-post-excerpt__excerpt  {\nfont-size:1.125rem!important;\n}\n<\/style>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Find out how leave accrual works, as well as how to calculate holiday pay in final pay.<\/p>\n","protected":false},"author":10,"featured_media":41550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lite_auth_enabled":true,"_lite_auth_trigger_method":"scroll","_lite_auth_scroll_percent":25,"_lite_auth_click_element_query":"","exclude_from_algolia":false,"reading_time":"8 min 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