Hiring new employees for your NZ business can be complicated. Let us help you scale up and reach your next milestone faster with this free employer guide.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n Remuneration is an all-encompassing term for payments to an employee. This includes salary and wages, but also other forms of payment, such as:<\/p>\n\n\n\n Depending on the employee\u2019s position, the remuneration in an employment agreement refers to the annual salary or the hourly wage. Where there are multiple components to remuneration, like superannuation and leave arrangements<\/a>, you will typically deduct these components from the salary component.<\/p>\n\n\n\n Businesses often calculate salaries on an annual basis. Additionally, employers typically use salaries where there are a number of set hours that an employee works per week. Typically, you negotiate a salary with an employee at an annual rate. This results in a pre-determined, regular amount you pay accordingly, such as weekly, fortnightly or monthly.<\/p>\n\n\n\n When paying a salary, the pay rate should be at least equal to the minimum wage<\/a>. Often, salaried remuneration is considerably higher than the minimum wage to account for any overtime employees might work. <\/p>\n\n\n\n For example, if someone is working 35 hours a week with an annual salary of $42,770, then the hourly rate is calculated as follows:<\/p>\n ($42,770 salary \/ 52 weeks ) \/ 35 hours per week = $23.50 (hourly rate).<\/p>\n In this example, if you request a salaried employee to work overtime, this may become problematic since their hourly rate would drop below the minimum wage (which, as of 1 April 2025, is $23.50). To avoid situations like this, you should ensure that the salaried rate includes potential overtime that you might expect your employee to work.<\/p>\n <\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nWhat is Remuneration?<\/h2>\n\n\n\n
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What is a Salary?<\/h2>\n\n\n\n
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\n NZ How to Hire and Inspire<\/div>\n
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