What Happens to Payroll When Your Nanny Gets Sick, Injured, or Pregnant in NZ? | 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 ------- What Happens to Payroll When Your Nanny Gets Sick, Injured, or Pregnant in NZ? ============================================================================== By Mark Hudson · 04 February, 2026 Hiring a nanny means becoming an employer, and real life does not stop once payroll is set up. If your nanny gets sick, injured, or pregnant, payroll obligations can quickly feel confusing. Here is how nanny payroll works in New Zealand during major life events, explained clearly and calmly. ![What Happens to Payroll When Your Nanny Gets Sick, Injured, or Pregnant in NZ?](https://assets.caresies.io/articles/2435/conversions/7ukqEIoIZfe8Pab4eSN0-webp-featured.webp) Employing a nanny in New Zealand is not just about weekly pay runs. Families are also responsible for managing payroll correctly when unexpected life events occur. Understanding what happens in these moments builds trust, avoids costly mistakes, and helps maintain a strong working relationship. Below we walk through the most common scenarios families face. When Your Nanny Gets Sick ------------------------- If your nanny is sick, payroll treatment depends on their [leave entitlements](https://paythenanny.nz/articles/understanding-leave-entitlements-for-nannies-and-au-pairs-in-new-zealand) and employment type. Most permanent nannies in New Zealand are entitled to paid sick leave after six months of continuous employment. They accrue ten days of sick leave per year under the [Holidays Act 2003](https://www.employment.govt.nz/leave-and-holidays/sick-leave/taking-sick-leave). If your nanny has sick leave available: - Sick leave is paid at their relevant daily pay - Payroll continues as normal - Sick leave balances reduce accordingly If your nanny has no sick leave available: - The time off is unpaid unless you agree otherwise - No ACC involvement applies for general illness Casual nannies who receive 8 percent holiday pay instead of accruing leave generally do not have paid sick leave unless specifically agreed. Payroll systems should clearly record sick leave separately from hours worked to remain compliant with Employment New Zealand guidance. When Your Nanny Is Injured -------------------------- Injuries are treated very differently to illness in New Zealand due to ACC. If your nanny is injured, whether at work or outside of work, they may be eligible for weekly compensation from ACC. Here is how payroll typically works: **First week after injury** - The employer usually pays the first week as sick leave or annual leave if no sick leave is available - This is known as the first week compensation period **After the first week** - ACC may pay weekly compensation directly to the nanny, usually at 80 percent of their normal earnings - Payroll payments from the family usually stop during this period Important points for families: · If the injury happens at work, then the employer might be required to pay for the first week · If your nanny is injured at work, it’s important to contact us as soon as possible (if you’re a Pay The Nanny family). When Your Nanny Becomes Pregnant -------------------------------- Pregnancy introduces [payroll obligations](https://www.employment.govt.nz/leave-and-holidays/parental-leave) as well as job protection responsibilities. If your nanny becomes pregnant: - She may continue working as normal until she chooses to take parental leave - Payroll continues as usual during this period When parental leave begins: - Payroll payments generally stop unless you voluntarily top up income - Government paid parental leave is administered separately and paid directly by Inland Revenue Department - You must keep the role open for the nanny if she meets eligibility requirements Eligibility for job protection depends on how long the nanny has been employed and average weekly hours worked. In most cases, families must hold the position for up to 12 months. Payroll systems should record parental leave correctly so employment continuity is preserved even though wages are not being paid. Who Pays What and When ---------------------- A simple breakdown helps reduce stress: - Sick leave: Paid by the employer through payroll - Injury after first week: Paid by ACC directly - Paid Parental Leave: Paid by IRD directly - Employer obligations: Record keeping, job protection, compliance Understanding who pays what prevents accidental double payments or missed obligations. Why Job Protection Matters -------------------------- One of the biggest misunderstandings for families is assuming payroll ending means employment ends. This is not the case. Even when: - ACC is paying weekly compensation, or - The nanny is on parental leave The employment relationship usually continues. Ending employment incorrectly during these periods can expose families to personal grievance claims. This is why payroll is not just about money. It is about maintaining compliant employment records during life events. How Pay The Nanny Helps ----------------------- Managing payroll through illness, injury, or pregnancy can feel overwhelming, especially for families employing a nanny for the first time. Pay The Nanny helps by: - Managing payroll transitions during leave - Handling ACC and IRD reporting correctly - Keeping employment records compliant - Providing calm guidance when situations change Having the right [payroll support](https://paythenanny.nz/For-Families) means families can focus on caring for their household while staying confident they are meeting their obligations. [ ![](https://assets.caresies.io/articles/602/conversions/Wj6HSTDuMOJl7FSihI8M-webp-featured.webp) ](https://paythenanny.nz/articles/increase-sick-leave-for-nannies)By Mark Hudson · 10 June, 2021 ### [Increased Sick Leave for Nannies](https://paythenanny.nz/articles/increase-sick-leave-for-nannies) INCREASED SICK LEAVE FOR NANNIES As nannies have increased in popularity, you may be considering hiring a nanny for your home. They can be a great alternative to child care and may even save you money if you have more than one child.  If you already have a nanny, you may not have heard about the recent legislation passed around required sic [Read more...](https://paythenanny.nz/articles/increase-sick-leave-for-nannies) [ ![](https://assets.caresies.io/articles/533/conversions/jBogndrnaLeWGiMfoaRP-webp-featured.webp) ](https://paythenanny.nz/articles/navigating-nanny-payroll-with-pay-the-nanny-a-comprehensive-guide-to-leave-entitlements)By Mark Hudson · 06 December, 2023 ### [Navigating Nanny Payroll With Pay The Nanny: A Comprehensive Guide to Leave Entitlements](https://paythenanny.nz/articles/navigating-nanny-payroll-with-pay-the-nanny-a-comprehensive-guide-to-leave-entitlements) From annual leave to sick days and public holidays, managing your nanny’s entitlements can get confusing fast. This guide breaks down every type of leave and shows how Pay The Nanny helps you stay compliant - without the admin headaches. [Read more...](https://paythenanny.nz/articles/navigating-nanny-payroll-with-pay-the-nanny-a-comprehensive-guide-to-leave-entitlements) [ ![](https://assets.caresies.io/articles/2485/conversions/RfQr0fYiTKkEkJwJZR47-webp-featured.webp) ](https://paythenanny.nz/articles/do-i-have-to-pay-my-nanny-when-i-go-away)By Mark Hudson · 09 April, 2026 ### [Do I have to pay my nanny when I go away?](https://paythenanny.nz/articles/do-i-have-to-pay-my-nanny-when-i-go-away) School holidays are a popular time for families to travel, but what happens to your nanny while you’re away? Understanding your obligations around pay and leave is key to avoiding confusion, staying compliant, and maintaining a positive working relationship. [Read more...](https://paythenanny.nz/articles/do-i-have-to-pay-my-nanny-when-i-go-away) [ ![](https://assets.caresies.io/articles/735/conversions/F92JIGsL0NXoukl2YI7W-webp-featured.webp) ](https://paythenanny.nz/articles/understanding-leave-entitlements-for-nannies-and-au-pairs-in-new-zealand)By Mark Hudson · 29 July, 2024 ### [Understanding Leave Entitlements for Nannies and Au Pairs in New Zealand](https://paythenanny.nz/articles/understanding-leave-entitlements-for-nannies-and-au-pairs-in-new-zealand) Navigating leave entitlements for nannies and au pairs in New Zealand can be complex. Our guide simplifies the legal obligations, detailing annual, sick, bereavement, and parental leave. Ensure your nanny is treated fairly and compliantly, building a strong working relationship. [Read more...](https://paythenanny.nz/articles/understanding-leave-entitlements-for-nannies-and-au-pairs-in-new-zealand) [ ![](https://assets.caresies.io/articles/604/conversions/WLNzb8jVStiESYMGZMjg-webp-featured.webp) ](https://paythenanny.nz/articles/transition-to-invoxy)By Mark Hudson · 17 March, 2021 ### [Transition to Invoxy](https://paythenanny.nz/articles/transition-to-invoxy) We're moving from Flexitime to Invoxy! We're excited to announce that we're transitioning to a new and improved online payroll system - Invoxy! The new payroll system will be an improved offering for both our families and nannies and will ensure that payroll remains a seamless exercise for all our customers. In this email, we've outlined what [Read more...](https://paythenanny.nz/articles/transition-to-invoxy) ![Pay the nanny](https://paythenanny.nz/images/logo-white.png)Join Our Community Stay in the loop! 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