Team overtime cost calculator: the period, the year and a new hire
Overtime costs each person's overtime hours times their hourly rate times the overtime rate in your employment agreements, plus employer KiwiSaver of at least 3.5% and ACC levies on that pay. Type the hours and rates for a week, fortnight or month. The calculator gives the cost for the period, a year at the same pace, and how it compares with one more hire.
Worked out for the example. Change the boxes to make it yours.
| Mei: 6 hours at $51.00 | $306.00 |
|---|---|
| Josh: 8 hours at $40.50 | $324.00 |
| Tama: 5 hours at $39.75 | $198.75 |
| Lena: 4 hours at $36.75 | $147.00 |
| Overtime pay at time and a half | $975.75 |
| Employer KiwiSaver (3.5%) | $34.15 |
| ACC levies at $0.48 per $100 | $4.68 |
| Overtime cost, a week | $1,014.58 |
| Over a year at this pace | $52,758 |
| Overtime hours a year at this pace | 1,196 hours |
| Overtime as full-time people (40 hours a week) | 0.58 of a person |
| Against the cost of one more person a year | 90% ($58,400) |
- New Zealand law sets no overtime rate: the rate here is the one your employment agreements set.
- Overtime is part of gross pay for KiwiSaver and ACC, so the employer's contribution and the levies apply to it too. ESCT comes out of the KiwiSaver contribution, not on top of it.
- Overtime also raises average weekly earnings, which can raise annual holiday pay, and adds to the 8% for anyone paid holiday pay with each pay. That knock-on cost is not counted here.
- One more person works ordinary hours at the ordinary rate, so they can take on overtime hours at a lower cost an hour, but their cost is the same whether or not the work is there.
Team timesheets shows the hours staff choose to share, by person, project and task, and who has not logged this week, with a CSV ready for payroll, optional approvals and your own billable rates. It never reads the pay or rates in anyone's own account, and has no rosters.
See Team timesheetsNo law sets the overtime rate
New Zealand has no statutory overtime rate. Employment New Zealand says pay for overtime or extra shifts has to be agreed between employer and employee and included in the employment agreement: time and a half, double time, the normal rate, or a salary that allows for it. What the law does require is that every hour is paid at least the minimum wage, $23.95 an hour for adults from 1 April 2026, and that work on a public holiday is paid at least time and a half under section 50 of the Holidays Act 2003. Where an agreement has no valid availability provision with reasonable compensation, staff can turn down hours beyond their guaranteed hours. Our article on overtime and New Zealand law sets out the rules.
What comes on top of the overtime pay
Overtime is part of gross pay for KiwiSaver, so the employer's contribution of at least 3.5% applies to it, rising to 4% from 1 April 2028. Overtime is also liable earnings for ACC, so your work levy and the Working Safer levy of 8 cents per $100 apply, up to $156,641 of earnings a person in 2026/27. Payments for overtime count in gross earnings under the Holidays Act, which feed average weekly earnings and so can raise annual holiday pay, and they add to the 8% for anyone paid holiday pay with each pay. The calculator counts KiwiSaver and ACC; the holiday pay knock-on depends on each person's history and is left out.
Overtime or one more person
The yearly figure assumes every period goes like this one. Set it against the cost of another employee, which our cost of an employee calculator works out with KiwiSaver, ACC and leave. A new person costs the same whether the work is there or not, works ordinary hours at the ordinary rate, and needs time to learn the job. Overtime that is steady all year is the strongest case for a hire; overtime that comes in peaks is often cheaper to pay. The share of a full-time week shows how much of a person the overtime adds up to.
From 6 August 2028
Under the Employment Leave Act 2026, additional hours an employee is free to refuse earn a leave compensation payment of at least 12.5% of their ordinary hourly rate, on top of the pay for those hours, from 6 August 2028. Overtime of that kind will cost more then. Our article on the Employment Leave Act changes explains which hours count.
Questions
How do I calculate overtime cost for my team?
For each person, multiply their overtime hours by their ordinary hourly rate and by the overtime rate in their agreement, such as 1.5. Add the people together, then add employer KiwiSaver of at least 3.5% and your ACC levy rate on that pay.
Do I have to pay time and a half for overtime in NZ?
No. No law sets an overtime rate; the rate is whatever the employment agreement says, and may be the normal rate. Every hour must be paid at least the minimum wage, and work on a public holiday is paid at least time and a half.
Is KiwiSaver paid on overtime?
Yes. Inland Revenue includes overtime in gross pay for KiwiSaver, so the employee's deduction and the employer's contribution of at least 3.5% both apply to it.
When is it cheaper to hire than pay overtime?
When steady overtime a year costs close to what another person would cost, and there is enough work to keep them busy. Compare the yearly overtime cost with the full cost of a new employee, including KiwiSaver, ACC and leave.
How can I see who is working overtime?
Team timesheets at jobtracker.co.nz shows the hours staff choose to share, by person, project and task, for any period, with a CSV ready for payroll, so long weeks show before pay day. It never reads the pay or rates in anyone's own account, and has no rosters.
Sources
- Employment New Zealand: working overtime or extra shifts.
- Inland Revenue: employer contributions to KiwiSaver schemes and complying funds.
- Inland Revenue: gross pay for KiwiSaver schemes and complying funds.
- Inland Revenue: KiwiSaver changes.
- business.govt.nz: ACC levies.
- Accident Compensation (Work Account Levies) Regulations 2025, Schedule 2: rates for 2026/27.
- Health and Safety at Work (Rates of Funding Levy) Regulations 2016.
- Holidays Act 2003.
- Employment New Zealand: annual holiday pay.
- Employment New Zealand: understanding types of workers.
- Minimum Wage Order 2026 (SL 2026/16).
- Employment Leave Act 2026, in force 6 August 2028.
More free tools: see all the calculators.