NZ overtime & penal rates calculator
Stack your base hours with overtime tiers (time-and-a-half, double-time, public holidays) and see your real weekly pay, annualised gross, and what you actually take home.
44 hours total · effective average $33.45 /hour.
Need to model student loan or different KiwiSaver rates? Open the full PAYE calculator.
Heads up: at this income, your marginal tax rate is 30%. Each extra overtime hour above this point is taxed at that marginal rate, so the "real" extra dollar in your pocket is smaller than the gross figure suggests.
Penal rates (T1.5 / T2 / public holiday rate) come from your employment agreement, not the law in general — the Holidays Act only mandates time-and-a-half plus an alternative day for working a public holiday. Always check your contract.
What NZ law actually says about overtime.
There is no general legal right to overtime pay in New Zealand. Unlike the US or Australia, NZ employment law doesn't require an automatic premium for hours worked above 40 per week. Your overtime entitlement comes from one place: your employment agreement (or applicable collective).
Public holidays are the exception. If you work on a public holiday that falls on a day you would otherwise have worked, you are legally entitled to time-and-a-half on the hours worked,and a paid alternative day off ("day in lieu"). This is set by the Holidays Act 2003.
Common contractual penal rates in NZ industries include time-and-a-half (T1.5) for Saturday work, double-time (T2) for Sundays, and double-time-plus-day-in-lieu for public holidays. These are common but not universal — check your collective or individual agreement.
Tax doesn't change. Overtime is just income, taxed under PAYE like the rest of your salary. There's no special "overtime tax". But if your overtime pushes your annualised income into a higher bracket (the 30% band starts at $53,500, the 33% band at $78,100, and the 39% band at $180,000), the marginal tax on those extra hours can feel painful.