Every employee in New Zealand gets paid annual holidays. The law calls it annual holidays. Most people call it annual leave. Here's how much you get, how your holiday pay is worked out, and what happens on public holidays.
How much annual leave do you get?
After each 12 months of continuous work for the same employer, you're entitled to at least 4 weeks of paid annual holidays. That applies to all employees.
A new 4 weeks is added on each work anniversary. Your employment agreement can give you more than 4 weeks, but not less.
| Question | Answer |
|---|---|
| How much | At least 4 weeks a year |
| When you're entitled | After 12 months of continuous employment |
| Leave before 12 months | Only if you and your employer agree |
| Holiday pay | The greater of ordinary weekly pay or average weekly earnings |
| When it's paid | Before the holiday, unless you agree to your normal pay cycle |
| Cashing up | Up to 1 week a year, if you ask in writing and your employer agrees |
Taking leave before your first 12 months
You can take annual holidays in advance, before you're entitled to them, if you and your employer both agree. It can help if you had a trip booked before you started a new job.
How holiday pay is calculated
Your employer must pay you the greater of two amounts for each week of annual leave:
- Ordinary weekly pay. What you get under your employment agreement for an ordinary working week, worked out at the start of the holiday. It includes regular allowances, incentive payments and regular overtime.
- Average weekly earnings. Your gross earnings over the 12 months before the holiday, divided by 52.
If your ordinary weekly pay is hard to pin down because it varies, it's worked out from your gross earnings in the 4 weeks before the holiday, less any one-off or irregular payments, divided by 4.
Worked example
Sam's employment agreement pays $1,000 for an ordinary week. Over the past 12 months Sam picked up extra shifts and earned $57,200 in total.
- Ordinary weekly pay: $1,000
- Average weekly earnings: $57,200 ÷ 52 = $1,100
- Holiday pay: the greater amount, so $1,100 for each week of leave
Now say Sam just got a pay rise to $1,100 a week, but earned only $52,000 last year. Average weekly earnings would be $1,000, so Sam gets the new $1,100 ordinary weekly pay. The rule always gives you the better of the two.
Holiday pay is taxed like the rest of your pay. The 2026–27 tax brackets show how much tax comes out.
When holiday pay is paid
Your employer must pay you for annual leave before you take it, unless you've agreed in writing to be paid in your normal pay cycle.
Public holidays and annual leave
Public holidays are on top of your 4 weeks. If a public holiday falls during your annual leave, on a day you'd normally work, you take it as a public holiday instead. It doesn't come out of your annual leave.
If you work on a public holiday:
- you're paid at least time and a half for the hours you work, or more if your employment agreement says so
- if it's a day you'd normally work, you also get an alternative holiday. That's a full paid day off to take another time.
If a public holiday falls on a day you'd normally work and you don't work it, you get the day off on your normal pay. The Labour Day 2026 guide lists the next public holidays.
Cashing up annual leave
You can ask to cash up up to 1 week of your 4-week entitlement each year. That means swapping a week of leave for pay.
- You have to ask in writing. You can ask for the whole week at once or a bit at a time.
- Your employer must reply in writing within a reasonable time. They can say no, and they don't have to give a reason.
- If they agree, they pay it promptly, usually on the next payday, at the same rate as if you'd taken the time off.
- Cashing up can't be a condition of your job.
Any extra weeks above the legal 4 can be cashed up if your employment agreement allows it.
Pay-as-you-go holiday pay
Some employees can agree to get at least 8% of their gross earnings added to each pay instead of taking paid annual holidays. It's only allowed if certain criteria are met. Ask your employer if you think it applies.
What's changing in 2028
The Employment Leave Act 2026 will replace the Holidays Act 2003 on 6 August 2028. Employment New Zealand says it changes how annual leave is earned, taken and paid, and how public holidays and alternative leave work. None of that applies yet. Until August 2028 the rules on this page stand.
Common questions
How much annual leave do you get in NZ?
At least 4 weeks of paid annual holidays after each 12 months of continuous work for the same employer.
How is holiday pay calculated in NZ?
It's the greater of your ordinary weekly pay at the start of the holiday, or your average weekly earnings over the previous 12 months (gross earnings divided by 52).
Can I take annual leave before 12 months?
Yes, if you and your employer agree. It's called taking annual holidays in advance.
Can I cash out my annual leave?
You can ask in writing to cash up to 1 week of your 4-week entitlement each year. Your employer can say no.
Do public holidays count as annual leave?
No. If a public holiday falls on a day you'd normally work during your leave, it's treated as a public holiday, not annual leave.
For the other kinds of leave, see sick leave, bereavement leave and paid parental leave.
Sources: Employment New Zealand, Annual holidays, Taking annual holidays, Annual holiday pay, Cashing up annual holidays, Public holiday pay, Alternative holidays and Employment Leave Act 2026. Checked October 2026. General information, not legal advice.