Worked example: $30 an hour
At 40 hours a week, $30 an hour is $62,400 a year. Income tax takes $10,940.50 and ACC $1,092, leaving $50,367.50 take-home — $968.61 a week, or an effective $24.22 for every hour worked, before KiwiSaver. That's the number to hold against a salaried offer.
Frequently asked questions
How do I convert an hourly rate to a salary?
Multiply the rate by your hours per week, then by 52. $30 an hour at 40 hours a week is $62,400 a year before tax — and $50,367.50 after tax and ACC.
What's the NZ minimum wage in 2026–27?
$23.95 an hour for adults (from 1 April 2026). The starting-out and training rates are $19.16 an hour.
Why does the 'effective hourly rate' matter?
It shows what an hour of your work is really worth after deductions. It's the fairest way to compare an hourly job against a salaried one — or to price freelance work once you add KiwiSaver and leave on top.
Is holiday pay included in an hourly rate?
Only if your agreement says your rate is 'inclusive' via the 8% pay-as-you-go rules (casuals and short fixed-term). Otherwise holidays come on top — see the holiday pay calculator.
How many hours is a 'standard' full-time week?
Most NZ full-time roles are 37.5–40 hours. This calculator defaults to 40; change it to match your agreement — it changes both the salary conversion and the hourly result.
Rates checked against official sources on 1 November 2026: IRD tax rates for individuals and Employment NZ minimum wage. See how we calculate for the full method and update log.