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.

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