Overtime pay in New Zealand 2026: premiums, limits and tax
Overtime, night work and work on Sundays and public holidays in New Zealand can earn a premium on top of your normal hourly pay, and the extra pay is taxed at your highest rate. The calculator above shows what you really keep. Below you will find the rules in brief, an example and answers to common questions.
The rules in brief
- Employment agreements: There is no legal overtime rate: extra hours are paid as the employment agreement says, as long as average pay stays at least at the minimum wage ($23.95 an hour from 1 April 2026). Work on a public holiday is paid at least time and a half plus a day off in lieu if it is a normal working day.
Example: 8 hours of overtime a month
| Type | Rate | € / h gross (NZ$) | € / h net (NZ$) |
|---|---|---|---|
| Overtime | +0% | 37.50 | 23.19 |
With a normal hourly rate of NZ$37.50 (annual salary ÷ 52 ÷ weekly hours), 8 hours of overtime a month at +0% add NZ$300.00 gross, of which you keep NZ$185.50 net a month. You keep 61.8% of each taxed extra unit. Over a year that comes to NZ$2,226 (net · NZ$3,600 gross).
More than 80 overtime hours a year exceeds the legal limit in Spain.
Frequently asked questions
How much of my overtime pay do I keep in New Zealand?
In the example, 61.8% of each extra unit of gross pay, i.e. NZ$185.50 net from 8 overtime hours a month. The share depends on your salary, because extra pay is taxed at your highest rate.
Is there a legal overtime premium in New Zealand?
There is no general legal premium in the example; it comes from your contract or collective agreement. The exact rules, including night, Sunday and holiday premiums, are listed above.
How many overtime hours are allowed?
The calculator uses this limit: No legal limit; set by the agreement. See the rules above for averaging periods and exceptions.
Are these amounts exact?
They are estimates under the 2026 rules. Your contract or a collective agreement can set higher premiums or different limits.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.
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