True Employee Cost Calculator

The True Employee Cost Calculator helps you see what a staff member really costs your business once you add the extras on top of their base salary. A wage is only the starting point. As a New Zealand employer you also pay compulsory KiwiSaver employer contributions, the ACC work levy, and a share of overheads such as software, office space, equipment, training and management time. This tool takes the gross annual salary, applies an employer KiwiSaver rate and an ACC levy rate, then adds an overhead loading expressed as a percentage of salary, so you can compare the headline pay against the full burden carried by the business. You enter the salary, the KiwiSaver employer rate, the ACC levy rate and your overhead percentage, and you get back the total annual cost plus an indicative cost per hour based on standard full time hours. It is useful for owners pricing jobs, managers building budgets, and anyone deciding whether to hire, contract or outsource. Knowing the real number stops you underpricing work and helps you set charge out rates that actually cover the role. Good practice is to use your own ACC classification rate rather than a generic figure, since levies vary widely by industry. Review overheads honestly, because rent, devices and admin add up quickly per head. Finally, remember that paid leave is already inside an annual salary, so focus your loading on the genuine extra costs rather than double counting. Treat the result as a planning estimate and confirm exact figures with your accountant before committing to a hire.

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$86,919
Total annual cost
KiwiSaver + ACC$2,919
Overheads$14,000
Cost per hour$41.79

Total = salary + salary x (KiwiSaver% + ACC%) + salary x overhead%. Hourly uses 2,080 hours. Estimate only, not financial or tax advice.

How it works

The calculator takes the gross salary and adds employer KiwiSaver and the ACC levy, each as a percentage of salary. It then adds an overhead loading, also a percentage of salary. The hourly figure divides the total annual cost by 2,080 standard full time hours.

Worked example

A $70,000 salary with 3.5 percent KiwiSaver and 0.67 percent ACC adds $2,450 plus $469, which is $2,919. A 20 percent overhead loading adds $14,000. The total cost is $86,919, or $41.79 per hour across 2,080 hours.

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Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

What does the true cost of an employee include?

It includes the base salary plus compulsory employer KiwiSaver contributions and the ACC work levy. On top of that you add overheads such as workspace, equipment, software, training and management time. The total is usually well above the headline salary.

How much is employer KiwiSaver in New Zealand?

The minimum compulsory employer contribution is 3.5 percent of gross pay for eligible employees. Some employers choose to pay more as part of a package. This calculator lets you set the rate so you can model either case.

Why add an overhead percentage?

Every employee uses shared resources that cost money beyond their pay. Expressing those as a percentage of salary gives a quick, consistent way to spread them across roles. Adjust the percentage to match your real fixed and support costs.