NZ Employment Leave Act 2026
The Act is law. It does not pay wages yet. Holidays Act 2003 stays in force until 6 August 2028. Payroll vendors who wait until 2028 will miss the window MBIE already opened.
6 August 2026
Employment Leave Act received Royal assent
Start a dual engine. Holidays Act still pays live wages.
Until 6 August 2028
Holidays Act 2003 still applies. You cannot opt in early.
Hours model, 12.5% loading, and pay statements — built beside current rules.
6 August 2028
New rules from each employee’s first pay period on or after this date
Go-live date. MBIE is telling payroll vendors to be ready now.
| Rule | Until first period on/after 6 Aug 2028 | From that period |
|---|---|---|
| Annual leave | 4 weeks after 12 months | ≥ 0.0769 hours per standard hour from day one |
| Sick leave | 10 days after 6 months | ≥ 0.0385 hours per standard hour from day one |
| Casual / extra hours | 8% PAYG in lieu of annual holidays | 12.5% leave compensation payment; no annual/sick accrual on those hours |
| Taking leave | Days; relevant or average daily pay | 1 hour off = 1 hour of leave; one hourly leave rate |
Sources: MBIE Employment Leave Act · Employment NZ. Accrual rates are the statutory minima MBIE has published for the hours model.
PeoplePulse already has an NZ PAYE model and a Holidays Act / ELA calculator. The product to sell now is readiness — not “we switched you to 2028 rules today.”
If you searched for payroll or Holidays Act reform
This page is for NZ employers and accountants getting ready for the Employment Leave Act 2026. The law is passed. It does not replace the Holidays Act until 6 August 2028. Search terms we match: hours-based leave, 12.5% casual loading, Otherwise Working Day, payroll software New Zealand.
Get payroll ready
Tell us headcount and pay frequency. We’ll quote a dual-engine build. Enquiry first — no card payment.