Holiday Pay Calculator New Zealand 2025/26
Calculate annual leave pay using OWP vs AWE, public holiday rates (time and a half), and PAYG for casual workers. Based on the Holidays Act 2003.
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How to Use This Calculator
Tab "Annual Leave"
Enter your pay type (annual salary or hourly rate), your standard weekly hours, any regular overtime, regular allowances, and your total gross earnings over the last 12 months. The calculator computes both OWP and AWE, applies whichever is greater, and shows your 4-week annual leave entitlement in dollars.
Tab "Public Holiday"
Enter your hourly rate, the hours you worked on the public holiday, and whether that day would otherwise have been a normal working day for you. The calculator shows your time-and-a-half pay and whether you have earned an alternative holiday (lieu day).
Tab "PAYG (Casual)"
Enter your gross earnings for the period. The calculator applies the 8% PAYG rate and shows your holiday pay component. PAYG applies to casual employees and fixed-term employees on contracts shorter than 12 months.
The Formulas
Ordinary Weekly Pay (OWP):
OWP = (Annual salary ÷ 52) + weekly allowances + regular overtime pay
For hourly workers: OWP = (hourly rate × standard hrs) + (hourly rate × regular OT hrs) + weekly allowances
Average Weekly Earnings (AWE):
AWE = Total gross earnings (last 12 months) ÷ 52
Includes: base pay, bonuses, commissions, overtime, allowances
Annual leave entitlement:
Annual leave $ = max(OWP, AWE) × 4 weeks
Daily rate = max(OWP, AWE) ÷ 5
Public holiday pay:
Pay for hours worked = hourly rate × 1.5 × hours worked
Alternative holiday earned if the day would otherwise have been a working day
PAYG holiday pay (casual/fixed-term < 12 months):
PAYG = gross earnings × 8%
(8% ≈ 4 weeks ÷ 52 weeks = 7.69%, rounded up)
All rates and rules are based on the Holidays Act 2003 (as amended by the Holidays (Increasing Sick Leave) Amendment Act 2021 and subsequent updates). Updated for 2025/26.
Example: OWP vs AWE in Action
Variable-hours worker receives a pay rise mid-year
A retail worker earns $26/hr for 35 hours/week. During the year they worked significant extra shifts, earning $58,000 gross in 12 months. Their current OWP and AWE are:
Because AWE is higher, the employee receives $4,462 for their 4 weeks — not $3,640 (based on OWP alone). The law ensures workers are not penalised when their earnings reflect genuine effort over the year.
NZ Holiday Pay Key Facts 2025/26
| Entitlement | Detail |
|---|---|
| Annual leave | 4 weeks after 12 months continuous employment |
| Holiday pay method | Greater of OWP or AWE |
| PAYG rate (casual) | 8% of gross earnings |
| Public holidays | 12 per year (including Matariki) |
| Public holiday worked | Time and a half + alternative holiday |
| Public holiday not worked | Ordinary day's pay (if otherwise a working day) |
| Sick leave | 10 days/year after 6 months employment |
| Bereavement leave — close family | 3 days |
| Bereavement leave — other | 1 day |
| Governing law | Holidays Act 2003 (amended 2021, 2023) |
NZ Public Holidays 2025
| Public Holiday | Date 2025 |
|---|---|
| New Year's Day | 1 January |
| Day after New Year's Day | 2 January |
| Waitangi Day | 6 February |
| Good Friday | 18 April |
| Easter Monday | 21 April |
| Anzac Day | 25 April |
| King's Birthday | 2 June (1st Monday in June) |
| Matariki | 20 June (floating — varies each year) |
| Labour Day | 27 October (4th Monday in October) |
| Christmas Day | 25 December |
| Boxing Day | 26 December |
| Regional anniversary day | Varies by region |
When a public holiday falls on a Saturday or Sunday, it may be observed on the following Monday or Tuesday. Check Employment New Zealand for the current year's Mondayisation schedule.