Public Holiday Pay in New Zealand: Ensuring Compliance, Minimising Risk

Public holiday pay can be a compliance pitfall if not managed correctly. Getting it right ensures fairness, avoids disputes, and protects your bottom line.

Key Employer Obligations

• Entitlement → Employees are entitled to a paid day off if the public holiday would otherwise be a working day for them.

• Working on a Public Holiday → Must be paid at least time-and-a-half plus a paid alternative holiday (“day in lieu”) if eligible.

• Calculations → Payment is based on Relevant Daily Pay (RDP) or, if fluctuating, Average Daily Pay (ADP).

• Substitution → Public holidays can be swapped for another day with mutual agreement in writing.

From Risk to Resilience

Shifting the mindset from ticking boxes to strategic planning means integrating public holiday planning into workforce and roster management. This limits last-minute scrambling, especially in seasonal industries.

Common Mistakes to Avoid

• Incorrectly identifying “otherwise working days”

• Underpaying casual staff who qualify for holiday pay

• Not accurately tracking alternative holiday balances

Employer Action Plan

• Audit your payroll system for compliance.

• Train managers in public holiday entitlements.

• Communicate obligations clearly to staff before each holiday period.

For public holiday pay and leave advice, contact us today.