2024 Guide to Au Pair Payroll in New Zealand

If you're looking for our most recent guide, check out the 2025 guide for Au Pair's in New Zealand, which we've just updated.

Hiring an au pair can be a great experience for your family, providing not only flexible childcare but also introducing your children to a new culture. However, managing payroll for an au pair can often be a complicated experience for both au pairs and families.

Whether you’re a first-time host family, or hired au pairs before, our guide for Au Pair payroll in sets out to explain all the components of payroll for an au pair in New Zealand. From setting up payroll, understanding au pair arrangements in New Zealand through to managing your tax obligations.

What exactly is an Au Pair and how is it different from a Nanny?

Before diving into the specifics, it's important to outline exactly what an au pair is and how they differ (or don’t differ) from a nanny or any other type of employee in New Zealand.

Typically, an au pair is a young person from another country who lives with a host family and helps with childcare and sometimes light housework, in exchange for a room, board, and weekly wages. The main difference between an au pair to a nanny is that an au pair lives with you, whereas a nanny doesn’t live with you.

In New Zealand, the employment status of an au pair, compared with a nanny is no different. Contrary to other countries, au pairs are treated as employees in New Zealand and that means that they are entitled to the same employment benefits that any other type of employee in New Zealand has.

At a minimum this includes:

• Both a nanny and an Au Pair should be treated as an employee

• They require a formal employment contract

• Both a nanny and an au pair need to be paid the minimum wage in New Zealand

• They’re both entitled to holidays (sick leave, annual leave and public holidays) under the Holidays Act

• A family is required to pay taxes, acc employer levies and Kiwisaver for both a nanny and an au pair (although, it’s important to note that majority of au pair’s aren’t entitled to receive Kiwisaver).

From a payroll perspective, the main difference in New Zealand is that an au pair receives a “pocket money” amount. This pocket money amount is based on the minimum wage in New Zealand but includes a board and lodgings component. This board and lodgings component reflects that because an au pair is living with you, receiving rent and food and it’s deducted from their wages.

We’ll go in to more depth around what board and lodgings is in the next few sections.  

Setting up as an employer to pay an Au Pair

Engage a nanny payroll service like Pay The Nanny or register with the IRD

If you are using a service like Pay The Nanny then we can make the registration simple as an employer, in fact you won’t need to actually do anything:

• For the purposes of the IRD, everything is filed directly via Pay The Nanny

• You’ll always be the employer of your au pair, require an employment contract, be responsible for managing the work they do and setting how much they need to get paid

• However, you won’t need to register as an employer with the IRD at all as it’s all managed via Pay The Nanny

• This makes it simple as you won’t need to deal with registering/de-registering or having to communicate with the IRD at all

If you are processing payroll yourself, then you will need to register as an employer with the IRD. The steps to do this are below:

1.      Collect all the necessary information required to complete the form such as your contact details, address, bank account details, BIC code and employment details

2.      Login to MyIR, or register for a MyIR account if you don’t have one yet

3.      In myIR go to “I want to…”

4.      Then select “Register for new tax accounts”

5.      Follow the prompts and submit your registration as an employer

Be Aware of your Tax Obligations when Employing an Au Pair

An au pair has the same tax obligations as any type of employee in New Zealand which means that when you are employing an au pair, you should make sure you are aware:

• PAYE (Pay As You Earn): As an employer, you are required to deduct PAYE from your au pair’s wages according to the tax codes and tables provided by the IRD.

• ACC Employee Levies: These levies provide your au pair with accident insurance and are included in the PAYE deductions.

• ACC Employer Levies: Both employers and employees are required to pay ACC. ACC employer levies are calculated annually based on the gross wages you declare to the IRD. If you are using Pay The Nanny, these are managed automatically for you.

• KiwiSaver Contributions: If your au pair opts into KiwiSaver, you must deduct contributions from their wages and add an employer contribution of at least 3%. If your au pair is on a working holiday visa, then they wouldn’t be eligible to register for KiwiSaver at all.

Within our articles sections, we have a number of other resources around employing a nanny and au pair in New Zealand. Make sure you check them out.

Formalising the Employment Contract

There’s a few no-no’s when it comes to paying an au pair. The biggest one is that an Au Pair can’t be paid cash under the table and they require a formal employment contract. That means that they need to be employed fairly and require an employment contract that’s signed by both parties.

To remain compliant the employment contract is an important part of hiring an Au Pair. For the most part, an employment contract for an au pair will look similar to that of a nanny or any other type of employee.

There are a few key things to consider for an au pair’s employment contract:

• Fixed Term – If your au pair is staying with you on a fixed term basis (i.e the contract has an end date) then make sure you use a fixed term employment contract. Putting in place a general employment contract, without reference to an end date, might open you up to legal challenges when it comes time for the au pair to finish. Whilst the legal risks are relatively no, it makes sense to get it right out the outset.

• Board & Lodgings – An Au Pair has what is called “Board & Lodgings” included in their wage setup. This is a recurring post-tax deduction that is included with each payroll processed. The amount of the deduction should be included in the employment contract. Legally, an employer can’t make a deduction from an employee’s pay without them agreeing to it in writing, so having it in the employment contract means that you’re covered.

• Completion Bonus – Au Pair’s often have what is called a completion bonus included in their pay. Whilst it’s not included in every Au Pair’s pay, if you are paying a completion bonus to your Au Pair, make sure you include the gross amount on the remuneration section of the contract.

If you need an employment contract, reach out to our team and we’ll be able to guide you with a template that you can use for your au pair.

Current Industry Standard Pay Rates for an Au Pair in New Zealand

Outlined below are the industry standard pay rates for an au pair in New Zealand. These rates are accurate up until July 2024 but they haven’t been updated yet for the changes in personal tax rates in New Zealand.

It’s important to note that these are the industry standard that the leading au pair agencies use when advising their customers around pay for an au pair. Whilst they are the industry standard, they should be used as a guide only and parents and au pairs will still be able to negotiate and amend as they see fit.

Standard Au Pair Rates

A Standard Au Pair is an au pair with some childcare experience but not as much experience as an “expert au pair”. Their take home pay ranges from $245 per week for 20 hours up to $330 per week for 45 hours.

Expert Au Pair Rates

An expert au pair is often more experienced and may have some form of early childhood qualifications. They tend to be paid a higher rate to reflect their additional experience. Their take home pay ranges from $305 per week for 20 hours up to $425 per week for 45 hours.

Understanding Board and Lodgings

When employing an au pair in New Zealand, one of the unique aspects of the payroll involves the inclusion of board and lodgings. Board and lodgings refer to the accommodation and meals provided to the au pair, which are considered part of their compensation but are treated differently in payroll calculations. Properly managing this component is critical, as errors can lead to compliance issues and penalties.

Payroll issues we commonly see with Board and Lodgings

• Incorrect Deductions: One common error is deducting too much for board and lodgings. This can result in underpaying the au pair, leaving them with little take home pay or  even result in them actually owing money to the employer.

• Failure to Specify in Contract: Not clearly specifying the board and lodging arrangements in the employment contract can lead to misunderstandings. It’s also illegal to deduct board and lodgings from an employee’s wages without their written consent

• Fluctuating amounts: Occasionally, families will change the amount of board and lodgings from payroll to payroll. This can lead to fluctuating take home pays for au pairs. A change in the amount deducted for board and lodgings also needs to be agreed in writing with an employee

Tips for Managing Board and Lodgings

• Make sure that the board and lodgings amount is agreed in writing in the employment contract
• Make sure that the board and lodgings is a fixed amount and doesn’t change from payroll to payroll. To ensure a consistent take home pay, we also strongly recommend that the hours which an au pair is paid is kept consistent
• Use the industry guidelines above to calculate a fair board and lodgings amount
• Make sure that the board and lodgings amount isn’t set too high for the amount which an au pair will be paid. It’s important that they are paid a fair amount to be able to have enough income to sustain themselves

If you aren’t sure around how much the board and lodgings amount should be set at, then get in touch with us or contact the agency, which you are using to help you find an au pair.

How do you find an Au Pair in New Zealand?

Au Pair link

Au Pair Link is recognised as one of the best agencies in New Zealand for finding au pairs. They offer a full-service experience which includes matching you with pre-screened au pairs, handling all the administrative details, and providing ongoing support.

Here's how to use Au Pair Link:

• 1. Visit the Website: Go to Au Pair Link and browse through the available information to understand their services and fees.

• 2. Sign Up and Create a Profile: Register on their platform and fill out a detailed profile about your family, your childcare needs, and the type of au pair you are looking for.

• 3. Selection Process: Au Pair Link will suggest matches based on your profile. You can then interview potential au pairs, either virtually or in person.

• 4. Finalise the Arrangement: Once you select an au pair, Au Pair Link will help you with the visa process, travel arrangements, and preparing a contract.

Using Au Pair World

Au Pair World offers a more hands-on approach for families who prefer to manage the hiring process themselves. This platform allows direct interaction with potential au pairs globally.

Here's how you can go about it:

• 1. Visit Au Pair World: Access the website at Au Pair World.

• 2. Create a Profile: Similar to Au Pair Link, you’ll need to create a detailed profile. List your expectations, the au pair’s duties, and the benefits you’re offering.

• 3. Search and Communicate: Use the platform’s search function to find au pairs who match your criteria and start communicating with them to see if they’d be a good fit.

• 4. Arrange the Employment: Handle the interview, agree on terms, assist with the visa application if necessary, and organize travel details directly with your chosen au pair.

Using Facebook Groups

For families on a tighter budget or those looking for a more informal arrangement, Facebook groups can be a valuable resource.

Here’s how to use them:

• 1. Join the Group: Access groups like Au Pair/Nanny Jobs in New Zealand on Facebook.

• 2. Post Your Requirement: Clearly state what you’re looking for in an au pair, including the hours needed, responsibilities, and what you’re offering.

• 3.  Screen Responses: Evaluate the responses and profiles of those interested. Conduct interviews and check references thoroughly.

• 4. Agree on Terms: Once you find a suitable match, discuss and finalise the employment terms directly.

Each of these methods has its own benefits, depending on your specific needs and resources. Whether you choose the full support of an agency like Au Pair Link, the DIY approach of Au Pair World, or the budget-friendly option via Facebook groups, make sure you comply with all legal requirements for employing an au pair in New Zealand.

Wrapping Up and Where to Get Support

In this guide, we've explored the essentials of hiring and managing an au pair in New Zealand, from understanding the unique role of au pairs compared to nannies, to navigating the legal landscape of employment, setting up proper payroll systems, and managing specific payroll components like board and lodgings.

Employing an au pair is not just about fulfilling your childcare needs; it's about creating a rich, cultural exchange that benefits both your family and the au pair. To ensure a successful and rewarding experience, it's crucial to follow the proper legal and procedural steps. By doing so, you'll provide a welcoming and compliant environment for your au pair, ensuring that both their rights and your responsibilities are well-managed.

If you need further assistance or have any questions about au pair payroll, don't hesitate to contact Pay The Nanny. We're here to help you simplify and manage your payroll requirements for au pairs. Reach out to us via email at [email protected] or visit our website for more information and support.