What Happens to Payroll When Your Nanny Gets Sick, Injured, or Pregnant in NZ?

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 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.

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 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.