Collection: Annual Leave Calculator NZ — Entitlement, Balance & 8% Holiday Pay
Estimate annual leave under the Holidays Act 2003 — still the law until the Employment Leave Act 2026 takes effect on 6 August 2028: weeks you've become entitled to, how much is accruing toward your next anniversary, your remaining balance in days and its approximate value — or the 8% pay-as-you-go figure for casual and short fixed-term work. What changes in 2028 is explained below.
General information only — not financial, tax or legal advice. Figures are estimates from the inputs you enter. Confirm with your adviser, accountant, lender or insurer.
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Entitled vs accrued — the distinction that matters
In New Zealand you become entitled to four weeks' annual leave on each anniversary of your start date; in between, leave is accruing but isn't yet yours to take as of right (many employers let you take it in advance). If you leave a job, entitled leave is paid out at the greater of ordinary weekly pay or average weekly earnings; the accruing portion since your last anniversary is paid at 8% of gross earnings for that period.
The Holidays Act is being replaced — what changes and when
The Employment Leave Act 2026 received Royal Assent on 6 August 2026 and replaces the Holidays Act 2003 from 6 August 2028 (from the first pay period starting on or after that date). Until then nothing changes and this calculator applies. From August 2028: annual leave accrues in hours from day one at 0.0769 hours per hour worked (the same four weeks a year for someone on steady hours), balances are held in hours and no longer grow or shrink when your hours change, leave is paid at an hourly leave-pay rate, and you can cash up to 25% of your balance a year instead of one week. Sick leave also moves to hours (0.0385 per hour worked, capped at 160 hours), pro-rated for part-timers. Casual employees will receive a minimum 12.5% leave compensation on top of pay instead of the current 8% holiday pay, and won't accrue annual or sick leave. Employers have the two-year transition to update payroll; treatment of balances at the changeover will follow the Act's transition provisions — check employment.govt.nz as guidance is published.
What a "week" of leave means (until August 2028)
Leave is in weeks, not hours, and a week is whatever a normal working week looks like for you — which is why this calculator asks for days per week. Part-timers with variable days should agree with their employer what a week is. Public holidays that fall during your leave don't come out of your annual leave.
Assumptions and sources
| Entitlement | 4 weeks per completed 12 months — Holidays Act 2003, employment.govt.nz |
| Value | Days × (hours per week ÷ days per week) × hourly rate — ordinary pay only; the Act may require average weekly earnings if higher. |
| 8% option | Casual/fixed-term under 12 months only, by agreement — employment.govt.nz |
| Employment Leave Act 2026 | Royal Assent 6 Aug 2026; commences 6 Aug 2028 (two-year transition). Hours-based accrual 0.0769 h/h annual, 0.0385 h/h sick (cap 160 h); casual leave compensation min 12.5%; cash-up 25%. Not applied here until commencement — mbie.govt.nz Holidays Act reform; employment.govt.nz |
| Not included | Alternative holidays, sick leave, public holidays, parental leave effects. |
Last reviewed 6 September 2026. Rates and thresholds change — check the linked sources before relying on a figure.
Frequently asked questions
How is annual leave calculated in NZ?
Employees get at least four weeks' paid annual leave after each 12 months of continuous employment. Payment for leave taken is the greater of ordinary weekly pay and average weekly earnings over the last 52 weeks.
What is 8% holiday pay?
For genuine casual employees, or fixed-term employees on contracts shorter than 12 months, the employer can pay 8% of gross earnings with each pay instead of providing four weeks' leave. It must be agreed in the employment agreement and shown separately on the payslip.
Can I cash up annual leave in NZ?
You can ask to cash up to one week of your entitled annual leave each year; the employer can decline. Any more than one week can't be cashed up.
Do I get paid out annual leave when I resign?
Yes — all entitled leave is paid out in your final pay, plus 8% of gross earnings since your last anniversary for the accruing portion, plus any alternative holidays owed.
Is the Holidays Act changing?
Yes. The Employment Leave Act 2026 was passed on 6 August 2026 and replaces the Holidays Act 2003 from 6 August 2028. Leave will accrue in hours from day one (0.0769 hours per hour worked for annual leave, 0.0385 for sick leave), casual employees will get a minimum 12.5% leave compensation instead of 8% holiday pay, and up to 25% of annual leave can be cashed up each year. Until August 2028 the current rules — and this calculator — apply.
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