Nanny Employer Payroll Changes New Zealand 2026 | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) [Contact](https://paythenanny.nz/contact) [Sign Up](https://paythenanny.nz/signup) [Log In](https://paythenanny.nz/app/login) Article ------- Nanny Employer Payroll Changes New Zealand 2026 =============================================== By Mark Hudson · 19 March, 2026 From April 2026, several payroll changes will impact families employing nannies in New Zealand. From minimum wage increases to KiwiSaver and ACC updates, staying compliant is key. Here’s a simple guide to what’s changing and what it means for you. ![Nanny Employer Payroll Changes New Zealand 2026](https://assets.caresies.io/articles/2470/conversions/G6UmSaW1fD0BnrD2Ncl4-webp-featured.webp) What Nanny Employers in New Zealand Need to Know Before April 2026 ------------------------------------------------------------------ If you employ a nanny, 2026 brings a handful of payroll changes worth getting across before they catch you off guard. None of these are dramatic, but getting them wrong could result in underpaying your nanny, misreporting to IRD, or falling short on KiwiSaver obligations. In the article below we have summarised those key changes. Minimum Wage Is Going Up to $23.95 ---------------------------------- From 1 April 2026, the [adult minimum wage](https://www.employment.govt.nz/news-and-updates/minimum-wage-is-increasing-on-1-april-2026) increases to $23.95 per hour. This applies across all employment types, including casual and part-time arrangements, so nannies working irregular hours are just as affected as those on set weekly schedules. For au pairs, we’ve updated our pay guide based on the new minimum wage from 1 April and you can check that out [here](https://paythenanny.nz/articles/au-pair-pay-rates) The practical impact goes beyond the base hourly rate. Under the [Holidays Act 2003, a](https://paythenanny.nz/articles/a-guide-to-holiday-pay-for-nannies-in-new-zealand) nanny's annual leave, public holiday pay, and relevant daily pay calculations are all tied to what they actually earn. When the rate goes up, so do those entitlements. Even if your nanny already earns well above $23.95, April is a sensible time to review their rate. The nanny labour market in New Zealand has tightened over recent years and keeping pay competitive helps with retention. Our latest pay guidance is attached in this article [here](https://paythenanny.nz/articles/nanny-pay-rates). KiwiSaver Contributions Are Increasing -------------------------------------- This one has the biggest financial impact for most families. The default [KiwiSaver contributio](https://paythenanny.nz/articles/kiwisaver-changes-in-new-zealand)n rate is increasing to 3.5% for both employees and employers, with a further increase to 4% expected in the years ahead. Employees who want to stay at a lower rate will need to actively apply for a temporary rate reduction via [their MyIR](https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/making-changes-to-my-kiwisaver/changing-my-kiwisaver-contribution-rate/temporary-rate-reduction). This can be from 3 months to a year and should be used to mitigate the cash impact of the increase in Kiwiasver rate. For nanny employers, this also means your compulsory employer contribution goes up. That increases the total cost of employment, which catches some families off guard if they've only been budgeting around the gross wage. If you need help understanding what the impact of that will be, just get in touch with the team at payroll@paythenanny.nz. It's worth having a straightforward conversation with your nanny about this too. Their take-home pay may shift slightly depending on their current contribution settings, and it helps to give them a heads-up rather than have it show up unexpectedly on a payslip. If you are an existing Pay The Nanny customer, we’ve already emailed all nannies who are on the payroll, so they should be well informed. ACC Earners' Levy Moving to 1.75% --------------------------------- The [ACC Earners' Levy](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/acc-clients-and-carers/acc-earners-levy-rates), which is deducted from employee wages, is set to increase to 1.75%. It's a small movement, but it does affect net pay, and payroll systems need to reflect the updated rate to stay compliant. This levy funds ACC's earners' account, which covers injuries that happen outside of work. Every employed person in New Zealand pays it, and the rate is reviewed periodically by ACC and the government. From 1 April 2027 onwards, it will also increase to 1.83%. Mileage Reimbursements: Keep an Eye on This One ----------------------------------------------- No confirmed update yet, but IRD mileage reimbursement rates are usually reviewed around May each year. For a petrol car, the current rate sits at **$1.17 per kilometre**, and with fuel and vehicle costs remaining elevated, an increase is likely to occur. This matters if your nanny uses their own car for any part of their work, whether that's school runs, picking up children from activities, or running household errands. Reimbursements paid at the [IRD approved rate](https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/vehicle-expenses/kilometre-rate-for-business-vehicles) are generally tax-free. Why Small Changes Add Up ------------------------ A lot of the changes coming through in April are similar to ones that have occurred in previous years, however the small changes can often creep up. The issue is when payroll doesn't keep pace with legislative changes across multiple areas at once. A nanny employer dealing with a minimum wage increase, a KiwiSaver rate change, and an ACC adjustment in the same period can easily end up with errors if payroll isn't being actively maintained. The most common problems we see at [Pay The Nanny](https://paythenanny.nz) are underpayment of leave entitlements when wages increase, incorrect employer KiwiSaver contributions, and final pay errors when employment ends. These aren't just administrative oversights. They can result in penalties from IRD and raise issues under the Employment Relations Act. Getting Ahead of It ------------------- The simplest way to handle all of this is to make sure your payroll is being managed by someone who tracks these changes as they happen and updates calculations before each deadline. That's what we do at [Pay The Nanny](https://paythenanny.nz): we handle minimum wage updates, KiwiSaver changes, ACC rates, leave calculations, and IRD compliance, so families don't have to think about it. If you'd rather manage payroll yourself, bookmark the [Employment NZ](https://www.employment.govt.nz/) website and subscribe to any IRD employer newsletters. The Bottom Line --------------- The April 2026 payroll changes for nanny employers in New Zealand are relatively contained, but they do require action before the relevant dates. Update your minimum wage if needed, check your KiwiSaver settings, confirm your ACC rate is correct, and watch for the mileage update. If you are a current Pay The Nanny customer, there’s nothing you’ll need to do – it’s all taken care of. However, if you're not sure how any of this applies to your specific situation, just get in touch with the team and we’ll be happy to help. [Pay The Nanny](https://paythenanny.nz)specialises in compliant, straightforward payroll for New Zealand families. [Get in touch](https://paythenanny.nz/contact) if you'd like help working through any of this before April. [ ![](https://assets.caresies.io/articles/1320/conversions/HAAOWeRRgLomZyb0VA4O-webp-featured.webp) ](https://paythenanny.nz/articles/nanny-pay-rates)By Mark Hudson · 15 December, 2025 ### [2026 Nanny Pay Guide | Pay The Nanny](https://paythenanny.nz/articles/nanny-pay-rates) Nanny pay rates continued to increase in 2026, driven by sustained demand and a shift toward formal employment. This update breaks down the national average, city-by-city rates, year-on-year changes, and what the data shows about where nanny wages are heading. [Read more...](https://paythenanny.nz/articles/nanny-pay-rates) [ ![](https://assets.caresies.io/articles/1747/conversions/Cxh61ybK5FDJsyb45yPD-webp-featured.webp) ](https://paythenanny.nz/articles/au-pair-pay-rates)By Mark Hudson · 19 February, 2026 ### [2026 Au Pair Rates and Hiring Guide](https://paythenanny.nz/articles/au-pair-pay-rates) Thinking of hiring an au pair in 2026? This updated guide covers everything Kiwi families need to know - from legal requirements and payroll setup to pay rates, board and lodgings, and where to find the right fit. Make sure you’re compliant, fair, and set up for a great experience. [Read more...](https://paythenanny.nz/articles/au-pair-pay-rates) [ ![](https://assets.caresies.io/articles/2506/conversions/sCR7KciKZFh3b3stU8Oz-webp-featured.webp) ](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand)By Mark Hudson · 08 May, 2026 ### [How Much Does a Night Nanny Cost in New Zealand?](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand) Sleep deprivation and newborn life often go hand in hand, which is why more Kiwi families are turning to night nannies for extra support. But how much does a night nanny cost in New Zealand in 2026? Here’s what parents should know about overnight nanny rates, what impacts pricing, and how payroll and employment obligations work. [Read more...](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand) [ ![](https://assets.caresies.io/articles/2499/conversions/Abg1QAOByGxj5bOE0Nrc-webp-featured.webp) ](https://paythenanny.nz/articles/hiring-a-nanny-in-new-zealand-in-2026)By Mark Hudson · 28 April, 2026 ### [Hiring a Nanny in New Zealand: A Practical 2026 Guide](https://paythenanny.nz/articles/hiring-a-nanny-in-new-zealand-in-2026) Hiring a nanny in New Zealand in 2026 is one of the most flexible and personalised childcare options available. Whether you are considering a nanny, babysitter, or au pair, understanding costs, pay, and compliance is essential to making the right decision for your family. [Read more...](https://paythenanny.nz/articles/hiring-a-nanny-in-new-zealand-in-2026) [ ![](https://assets.caresies.io/articles/2345/conversions/87HTdiuFoFOykn9m2foQ-webp-featured.webp) ](https://paythenanny.nz/articles/paye-for-nannies-new-zealand)By Mark Hudson · 07 November, 2025 ### [What You Need to Know About PAYE and Tax for Nannies in New Zealand](https://paythenanny.nz/articles/paye-for-nannies-new-zealand) Hiring a nanny in New Zealand means becoming an employer. Here’s everything you need to know about PAYE, KiwiSaver, and tax obligations - and how Pay The Nanny makes it simple to stay compliant. [Read more...](https://paythenanny.nz/articles/paye-for-nannies-new-zealand) ![Pay the nanny](https://paythenanny.nz/images/logo-white.png)Join Our Community Stay in the loop! Subscribe to receive the latest updates, exclusive content, and special offers straight to your inbox. 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