8% holiday pay calculator: check a casual payslip
Holiday pay paid with each pay must be at least 8% of your gross earnings: all of them, including overtime, penal rates and taxable allowances. It is only allowed for genuinely irregular work or a fixed term under 12 months, agreed in writing and shown separately. Type this pay's figures to check the amount and the arrangement.
Worked out for the example. Change the boxes to make it yours.
Your payslip looks to have worked the 8% on your hourly pay only. It is due on all your gross earnings, including the $60.00 of other earnings, so it is $4.80 short.
| 24.5 hours at $25.00 | $612.50 |
|---|---|
| Other earnings (overtime, penal rates, allowances) | $60.00 |
| Gross earnings this pay | $672.50 |
| 8% holiday pay due, at least | $53.80 |
| Holiday pay on your payslip | $49.00 |
| Short by | $4.80 |
| Total pay with holiday pay, before tax | $726.30 |
| From 6 August 2028: leave compensation payment at 12.5% of your hourly rate | $76.56 |
- On what you have told us, pay as you go looks allowed. Your employer should review it if your work becomes regular.
- Gross earnings include overtime, penal rates, commission and taxable allowances. They leave out reimbursed expenses and discretionary bonuses.
- From 6 August 2028, casual hours earn a leave compensation payment instead (Employment Leave Act 2026): at least 12.5% of your ordinary hourly rate for each hour, not 8% of gross.
Free on every plan. Your account adds this job to Your Timesheets as casual work with its hourly rate, after asking, so each pay's hours are on a record of your own.
When pay as you go is allowed
Normally you get 4 weeks' paid annual holidays after each 12 months of work. Section 28 of the Holidays Act 2003 lets an employer pay holiday pay with each pay instead, but only if all of these are true: you are on a fixed-term agreement of less than 12 months, or you work so intermittently or irregularly that giving you 4 weeks' annual holidays is impracticable; you agreed to it in your employment agreement; it is paid as an identifiable part of your pay; and it is at least 8% of your gross earnings. Employment New Zealand says the word casual on an agreement does not qualify you on its own: it is your actual pattern of work that counts. Someone with no guaranteed hours who works regularly, week after week, probably does not qualify. Our article on casual and permanent part-time work covers the difference.
What the 8% is worked out on
The 8% is of your gross earnings for the pay, as section 14 defines them: wages, overtime, commission and incentive payments, taxable allowances, and pay for any public holiday or leave in the period. It leaves out reimbursed expenses, discretionary payments and employer KiwiSaver contributions. Employment New Zealand's own example works it out on a pay that includes time and a half overtime. A common mistake is to work the 8% on ordinary hours only, which the calculator spots when the payslip figure matches 8% of your hours at your rate.
If the arrangement was wrong
If pay as you go was used when it should not have been, Employment New Zealand says you are entitled to 4 weeks' paid annual holidays for every 12 months of employment and can keep the 8% payments already made: an employer who paid it wrongly must not deduct those payments from your holiday pay or final pay. Keep your payslips and a record of your own hours, and raise it with your employer first.
From 6 August 2028
The Employment Leave Act 2026 replaces pay as you go for casual hours with a leave compensation payment: at least 12.5% of your ordinary hourly rate for each casual hour, paid every pay period and shown separately. It is worked on your ordinary rate, not on penal rates or other earnings. The calculator shows what this pay would earn under that rule. Until 6 August 2028, the 8% rule applies.
Questions
How do I calculate 8% holiday pay?
Add up your gross earnings for the pay, including overtime, penal rates and taxable allowances, and multiply by 0.08. On $672.50 of gross earnings, holiday pay is at least $53.80.
Is 8% holiday pay on top of my hourly rate?
Yes. It is paid on top of your earnings for the hours you worked, as a separate amount. Employment New Zealand's example adds 8% to gross earnings to get the total pay.
Does 8% holiday pay apply to overtime?
Yes. Overtime is part of gross earnings under section 14 of the Holidays Act 2003, so the 8% is worked on it too.
My agreement says casual, so do I get 8%?
Not automatically. Pay as you go is only allowed for a fixed term under 12 months or work so irregular that 4 weeks' holidays are impracticable. If you work regular hours, you may be owed 4 weeks' paid annual holidays instead.
What changes in 2028?
From 6 August 2028, casual hours earn a leave compensation payment of at least 12.5% of your ordinary hourly rate for each hour, under the Employment Leave Act 2026, instead of 8% of gross earnings.
What happens when I save this?
Your account adds the job to Your Timesheets as casual work with its hourly rate, after asking, so you can log your hours and check each payslip against them. Logging hours is free on every plan.
Sources
- Holidays Act 2003, sections 14 and 28.
- Employment New Zealand: pay-as-you-go annual holiday payments.
- Employment New Zealand: payslips.
- Employment Leave Act 2026, in force 6 August 2028.
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