Please note, this article provides an overview only, based on practical experience in dealing with these matters on a daily basis. We describe only the minimum requirements outlined in the Holidays Act 2003. Employers may provide greater entitlements, or operate under collective agreements that provide additional provisions. We are not lawyers and this article should not be seen as legal advice.

New Zealand has 12 official public holidays under the Holidays Act 2003, including Matariki.

New Zealand has not had weekend public holidays requiring Mondayisation since 2022. In 2026, this changes.

ANZAC Day in 2026 falls on a Saturday. Later in the year, Boxing Day (26 December) also falls on a Saturday, followed shortly after by the day after New Year’s Day in early January 2027. For some employees, these holidays will transfer to the following Monday under the Holidays Act 2003.

Where a public holiday falls on a weekend, it becomes necessary to determine whether the actual calendar date or the transferred date applies. This depends entirely on whether the day would otherwise be a working day for the employee.

New Zealand Public Holidays

The 12 national public holidays are:

• 1 January (New Year’s Day)

• 2 January (Day after New Year’s Day)

• 6 February (Waitangi Day)

• Good Friday

• Easter Monday

• 25 April (ANZAC Day)

• King’s Birthday

• Matariki (date varies year on year)

• Labour Day

• 25 December (Christmas Day)

• 26 December (Boxing Day)

In addition to these national public holidays are regional public holidays, commonly referred to as Anniversary Days. Each region observes one Anniversary Day, and the date varies across regions and years.

Anniversary Days in 2026

Anniversary days are generally observed on the Monday closest to the historical provincial founding date, except Canterbury and Hawke’s Bay, which are typically observed on a Friday.

The 2026 Anniversary dates are:

• Auckland – 26 January
• Wellington – 19 January
• Nelson – 2 February
• Taranaki – 9 March
• Otago – 23 March
• Southland – 7 April
• Hawke’s Bay – 23 October
• Marlborough – 2 November
• Canterbury – 13 November
• Westland – 30 November
• Chatham Islands – 30 November

Employers should confirm regional dates each year, as they can vary.

Otherwise Working Day

The first step in determining public holiday entitlements is establishing whether the day is an “otherwise working day” for the employee.

Employment New Zealand states:

“In many cases it is easy to work out whether or not an employee would otherwise have worked on the day in question because the working pattern or roster is constant.”

Where it is unclear whether the day is an otherwise working day, the employer and employee must consider all relevant factors, including:

• The employment agreement
• The employee’s usual work patterns
• Whether the employee works only when work is available
• Rosters or time and attendance systems
• The reasonable expectations of both parties
• Whether the employee would normally have worked if the day were not a public holiday

No single factor is determinative. All relevant factors must be considered.

If the day falls within a closedown period, the assessment must be made as though the closedown were not in effect.

Determining whether a day is an otherwise working day is a practical exercise based on the employee’s specific work pattern.

Public Holiday Entitlements

Public holiday entitlements are outlined in sections 46 to 50 of the Holidays Act 2003.

When the employee does not work

If the public holiday falls on an otherwise working day and the employee does not work, the employee is entitled to be paid their Relevant Daily Pay (RDP) or Average Daily Pay (ADP), where applicable.

If the day is not an otherwise working day and the employee does not work, there is no entitlement to payment.

When the employee works

If the public holiday falls on an otherwise working day and the employee works, they are entitled to:

• Payment at no less than time and a half of their relevant daily pay or average daily pay for the hours worked
• An alternative holiday (one full day)

If the public holiday does not fall on an otherwise working day and the employee works, they are entitled to:

• Payment at no less than time and a half for the hours worked
• No alternative holiday

Where an employee is already paid penal rates for weekend work, the employer must ensure that total payment is at least time and a half of the employee’s relevant daily pay for the hours worked. The Act does not require compounding of penal rates beyond the statutory minimum.

Mondayisation and Tuesdayisation

Mondayisation occurs when an eligible public holiday falls on a Saturday or Sunday.

The holidays that may be transferred are:

• New Year’s Day
• Day after New Year’s Day
• Waitangi Day
• ANZAC Day
• Christmas Day
• Boxing Day

If a public holiday falls on a weekend, whether the actual date or the transferred date applies depends on whether the day would otherwise be a working day for the employee.

It is essential to determine the otherwise working day first.

Practical Reference Guide

• A public holiday is recognised only once per employee
• If the weekend day is an otherwise working day and the Monday is not, the weekend day is the employee’s public holiday
• If the Monday is an otherwise working day and the weekend day is not, the Monday is the employee’s public holiday
• If both days are otherwise working days, the public holiday applies to the actual calendar date
• Where both Christmas and Boxing Day, or both New Year public holidays, fall over a weekend, Tuesdayisation may apply

Whichever day is determined to be the employee’s public holiday, the standard public holiday entitlements apply to that day.

From 1 April 2026, the KiwiSaver minimum contribution rate will increase for the first time in many years

For both employees and employers, this requires clear understanding, timely communication, and accurate payroll implementation.

This article outlines what is changing, how temporary rate reductions work, and what actions need to be taken before the new rate applies.

What’s Changing on 1 April 2026? 

From 1 April 2026, the minimum KiwiSaver contribution rate will increase:

• From 3% to 3.5% for employees

For employees, this means a slightly higher deduction from each pay. For employers, this means updating payroll systems and ensuring compliance from the effective date.

If no action is taken, the new 3.5% minimum will automatically apply.

Temporary Rate Reductions: What Employees Should Know

Employees who feel the increase may place pressure on their finances can apply for a temporary rate reduction.

This allows contributions to remain at 3% for a period between three months and 12 months.

Key points:

• The reduction must be approved by Inland Revenue.
• It does not occur automatically.
• Once the approved period ends, employees must reapply if they wish the reduction to continue

If no reapplication is made, the 3.5% minimum contribution will apply once the temporary period concludes

How to Apply for a Temporary Rate Reduction

There are no paper forms for this process.

Applications must be submitted online via MyIR (Inland Revenue’s digital platform). Once approved, Inland Revenue issues an acceptance letter confirming the temporary rate reduction

That acceptance letter is essential.

Employees should:

1. Apply via MyIR.
2. Wait for confirmation from Inland Revenue.
3. Provide the acceptance letter to their employer.
4. Retain a copy if changing jobs.

IMPORTANT: Employees cannot simply inform their payroll team directly. Payroll cannot apply the reduced rate without receiving the official acceptance letter from Inland Revenue  Without this documentation, the 3.5% minimum contribution must apply.

What Employers Need to Prepare

For employers, the rate increase will automatically apply from 1 April 2026 unless an employee provides an approved temporary rate reduction notice.

Practical actions include:

• Reviewing payroll system settings ahead of April 2026
• Informing employees early about the change
• Ensuring employer contribution rates align correctly with temporary reductions
• Establishing a clear process for receiving and storing Inland Revenue acceptance letters

Employers may choose to match the employee’s temporary 3% rate or continue contributing at 3.5%. However, a copy of the acceptance letter must be retained to justify the applied contribution rate.

At the end of the temporary reduction period, Inland Revenue will notify the employer that the reduction has ceased. Employer contributions must then revert to the 3.5% minimum.

Disciplined documentation and process clarity reduce confusion and ensure ongoing compliance.

Act Early to Avoid Disruption

Employees can already apply for temporary rate reductions. Applying early helps avoid automatic increases from 1 April 2026 and gives payroll teams time to process changes correctly.

For employers, early communication supports smoother transitions and reduces administrative pressure close to the effective date.

Final Thoughts

The percentage increase is modest. The implementation requirements are not.

Accurate payroll configuration, clear documentation processes, and proactive communication will ensure the change is applied correctly from day one.

Preparation creates clarity. Clarity protects confidence.

Bring Clarity to the KiwiSaver Update

Clear preparation reduces last-minute pressure.

If you would like structured support ahead of 1 April 2026, our Managed Payroll team can work alongside you to:

• Confirm payroll contribution settings align with the 3.5% minimum
• Establish a clear process for managing temporary rate reduction documentation
• Support structured employee communication
• Ensure a smooth transition when the new rate takes effect

Small percentage changes still require disciplined implementation. The right preparation keeps payroll accurate and controlled.

Talk to our team or Explore our Managed Payroll Services