Additional Overtime (optional)
Weekly Gross
$1,425.00
Weekly Net
$1,125.30
Overtime Earnings
$225.00
Effective Rate
$31.67/hr
How do penal rates work in NZ?
Under the Employment Relations Act and most collective agreements, overtime may be paid at penal rates: time-and-a-half (1.5x) for standard overtime, double time (2x) for weekends or extended overtime, and double-time-and-a-half (2.5x) on public holidays. Exact rates depend on your employment agreement.
How is PAYE calculated on overtime?
Overtime is taxed as part of your regular income under PAYE -- there is no special "overtime tax rate". However, because overtime increases your total annual income, it may push you into a higher tax bracket, meaning the extra earnings are taxed at your marginal rate.
Public holidays in New Zealand
New Zealand has 11 public holidays. If you work on a public holiday, you are entitled to at least time-and-a-half pay plus a day off in lieu (alternative holiday). Some agreements provide higher penal rates for public holiday work.
IRD-Aligned: Penal rates vary by employment agreement and industry. Check your employment agreement or contact Employment New Zealand for your specific rates.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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