Public holiday pay in New Zealand is governed by the Holidays Act 2003, and the rules are more nuanced than most people realise. Whether you're an employee wondering if you've been paid correctly, or an employer trying to get payroll right, this guide covers the key rules in plain English.
The starting point is straightforward: employees are entitled to a paid day off on public holidays. But what counts as pay, what happens if you work, and what about the concept of "otherwise working days" — these all need unpacking.
The "Otherwise Working Day" Test
Public holiday entitlements in New Zealand only apply on days when an employee would otherwise have been working. This is the single most important concept in the Holidays Act when it comes to public holidays.
If a public holiday falls on a day you wouldn't normally work anyway — say, a Monday when you only work Tuesday to Thursday — you're not entitled to an alternative holiday or extra pay for that day. The public holiday benefit is already built into your schedule.
However, if the public holiday falls on a day you would normally work, you're entitled to a paid day off at your relevant daily pay (or average daily pay, whichever is higher). If you work that day instead, you're entitled to time-and-a-half pay plus an alternative holiday.
Relevant Daily Pay vs Average Daily Pay
When you take a public holiday, your employer must pay you based on your "relevant daily pay" — what you would have earned if you'd worked that day. For most employees on a fixed salary or regular hours, this is straightforward.
However, if your pay varies significantly from day to day (for example, because you work irregular hours or earn commissions), your employer may use your average daily pay instead. This is calculated by dividing your gross earnings over the past 52 weeks by the number of days you worked.
Your employer must use whichever figure is higher. The intention of the law is that employees shouldn't be worse off on a public holiday than they would have been if they'd worked.
If You Work on a Public Holiday
If your employer requires you to work on a public holiday, you're entitled to two things under the Holidays Act 2003:
- Time-and-a-half pay: You must be paid at least 1.5 times your relevant daily pay for the hours you work on the public holiday. Some employment agreements specify higher rates.
- An alternative holiday: You're entitled to one paid alternative holiday to be taken at a later date. This is sometimes called a "day in lieu."
These two entitlements apply together — you get both the extra pay on the day and the alternative holiday later. An employer cannot pay you more to "buy out" the alternative holiday without your agreement, and even with agreement, it can only happen when the alternative holiday has already been earned.
Alternative Holidays: Your Rights
Once you've worked on a public holiday and earned an alternative holiday, you and your employer need to agree on when it's taken. You're entitled to take it at a date that's reasonable and mutually agreed. If you can't agree on a date within 12 months of earning it, your employer must allow you to take it on a day of your choosing, provided you give reasonable notice.
Alternative holidays must be treated the same as ordinary public holidays — you get paid at your relevant daily pay for the day you take it. They don't expire automatically, but after 12 months your employer is required to cooperate in scheduling them.
Public Holidays and Shift Workers
Shift workers and people on irregular hours often find public holiday rules confusing. The key questions are:
- Would you have worked that particular day if the holiday hadn't existed?
- What would you have earned on that day?
For shift workers whose roster changes weekly, employers typically look at roster patterns to determine whether a public holiday falls on an "otherwise working day." If you were rostered to work the shift that the public holiday falls on, you're entitled to the full public holiday treatment.
Some employment agreements have specific provisions for shift workers around public holidays. It's worth reading your agreement carefully and checking with your employer if anything is unclear.
Part-Time and Casual Employees
Part-time employees have the same public holiday rights as full-time employees, but only for the days they would normally work. If you work Monday, Wednesday and Friday, you're only entitled to public holidays that fall on those days.
Casual employees — those with no guaranteed hours — are in a more ambiguous position. Whether a casual employee is entitled to public holiday pay depends on their agreement and whether it was genuinely uncertain they would have worked that day. Many casual employees are paid a higher base hourly rate ("casual loading") that reflects the lack of guaranteed entitlements, including public holidays.
What If My Pay Was Wrong?
If you believe your employer hasn't paid you correctly for a public holiday, your first step is to raise it with them directly. Keep records of the days you worked, the rates you were paid, and any communications about holiday pay. Most underpayment situations come from genuine misunderstanding of the rules rather than deliberate non-compliance.
If you can't resolve it with your employer, you can contact Employment New Zealand for guidance, or raise a formal dispute through the Employment Relations Authority. There are time limits on raising employment disputes, so don't leave it too long.
Check upcoming NZ public holidays and plan ahead for payroll and leave entitlements.
View NZ Public Holidays 2025–2028Key Takeaways
The core principles of NZ public holiday pay aren't complicated, but they're easy to get wrong in practice. Remember:
- Public holiday entitlements only apply on days you would otherwise have worked.
- If you don't work, you receive pay at your relevant daily pay (or average, whichever is higher).
- If you do work, you receive time-and-a-half plus an alternative holiday — both, not just one.
- Alternative holidays don't expire but must be scheduled within a reasonable time.
- Part-time employees have the same rights as full-time, proportional to their working days.
The full details of the Holidays Act 2003 and Employment New Zealand's guidance are worth reading if you're managing payroll or have a complex situation. The rules exist to ensure that employees genuinely benefit from public holidays — not just in theory, but in their pay.
This article is for general information purposes only and does not constitute legal or employment advice. Entitlements may vary based on your employment agreement. For advice specific to your situation, contact Employment New Zealand or a registered employment lawyer.