Payroll Cost Calculator

The true cost of an employee is more than their salary, and this calculator adds up the main on-costs so you can budget accurately. It takes the gross annual pay you offer, then layers on employer KiwiSaver contributions, the ACC work levy, and the cost of holiday pay, to show your total payroll cost for the year. You enter the gross salary and the percentage rates that apply to your business, and the tool calculates each component in dollars before adding them to the gross figure. Employer KiwiSaver in New Zealand is 3.5 percent of gross pay for contributing employees from 1 April 2026, while the ACC work levy varies by industry classification and is set per $100 of liable earnings. Holiday pay reflects the four weeks of annual leave employees are entitled to, often estimated at around 8 percent of gross earnings when you accrue or cash it up. Employers, business owners and hiring managers use this calculator to set budgets, price jobs and quotes, compare the cost of hiring against contracting, and understand the gap between an advertised salary and what the role actually costs. For the best result, check your own ACC classification rate rather than assuming an average, confirm whether each employee is enrolled in KiwiSaver, and remember that costs such as recruitment, training, equipment and software sit on top of the figures here. It also helps to revisit your rates each year, since levy rates and contribution settings can change. Treat the total as a planning estimate and confirm exact obligations with Inland Revenue, ACC and your payroll provider before relying on it.

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Gross annual pay ($)

Employer KiwiSaver rate (%)

ACC work levy rate (%)

Holiday pay rate (%)

$78,897

Total payroll cost

Employer KiwiSaver$2,450

ACC work levy$847

Holiday pay$5,600

Total = gross + employer KiwiSaver + ACC levy + holiday pay. Estimate only, not financial or tax advice.

How it works

Each on-cost is the gross pay multiplied by its percentage rate. Employer KiwiSaver, the ACC work levy and holiday pay are worked out separately. The total is the gross pay plus all three on-costs.

Worked example

With gross pay of $70,000, KiwiSaver at 3.5 percent is $2,450, the ACC levy at 1.21 percent is $847, and holiday pay at 8 percent is $5,600. Added to the gross, the total payroll cost is $78,897.

Related calculators

Employee Cost Calculator: full cost to employ.
Hourly Rate Calculator: convert salary to hourly.
ACC Levy Calculator: self employed ACC levies.
Can I Afford to Hire?: the background to this calculation.
Meeting Cost Calculator: the same loaded rate applied to time spent in meetings.

Frequently asked questions

What is the employer KiwiSaver rate?

The minimum compulsory employer contribution is 3.5 percent of an employee's gross pay from 1 April 2026 for those enrolled in KiwiSaver. Some employers choose to contribute more. Employer superannuation contribution tax, or ESCT, applies to these contributions.

Why include holiday pay?

Employees in New Zealand are entitled to four weeks of paid annual leave, which is a real cost to the business. Estimating it at around 8 percent of gross earnings spreads that cost across the year. It is part of the true cost of employing someone.

Does this cover all employer costs?

No. It covers the main payroll on-costs of KiwiSaver, ACC and holiday pay on top of gross pay. Other costs such as recruitment, training, equipment and software are extra. Use the total as a planning estimate, not a final figure.