The Public Holiday Season and Christmas Payroll Planning
We know it feels way too early to be thinking about Christmas… but here we are!
If you have employees, this is your friendly reminder that now’s the time to get on top of your festive season planning.
Public Holidays | The Basics
Your employees are entitled to a paid day off if a public holiday falls on an otherwise working day for them.
If they’re required to work on that day, you must:
Pay at least time and a half for the hours worked, and
Provide an alternative holiday, even if only part of their shift fell on the public holiday.
Managing Public Holidays as an Employer
Public Holiday Pay & Alternative Holidays
My Pay Day Falls on a Public Holiday – What Now?
Our recommendation: process and PAY the payroll on the last business day before the public holiday.
If your team is happy to be paid after the break, that’s fine too, just make sure everything is discussed in good faith.
Key Public Holiday Dates
2025 Festive Season:
🎅 Christmas Day – Thursday 25 December 2025
🎁 Boxing Day – Friday 26 December 2025
🎉 New Year’s Day – Thursday 1 January 2026
✨ Day after New Year’s Day – Friday 2 January 2026
📅 Full List of NZ Public Holidays and Anniversary Dates
Tip: Check your regional anniversary date too, they sneak up fast!
Christmas Bonuses – Are They Discretionary?
If the payment is not in an employee’s employment agreement, then it’s a DISCRETIONARY PAYMENT, and will not be included in the gross earnings when calculating the value of annual leave. This may apply to a Christmas bonus however check your employment agreement.
‘Discretionary payments’ definition: A discretionary payment is one given at the sole discretion of the employer. The key is that the employer hasn't set the expectation of a bonus if employees meet certain goals. Additionally, the amount and timing of the bonus isn't known in advance.
How to Tax a Christmas Bonus or Lump Sum
Lump-sum payments must be taxed on a lump-sum basis, following IRD guidelines.
Your payroll software should handle this automatically, but if you’re unsure, reach out to our A4 Payroll Team, we’re here to help!
Employing Young People Over the Holidays
There are several minimum wage rates to be aware of:
Quick Recap
✅ Pay your team before the holidays if possible.
✅ Double-check who’s rostered for public holidays and what rates apply.
✅ Review employment agreements for bonus or discretionary payment wording.
✅ Confirm wage rates for younger or temporary staff.
Need a Hand?
If you’ve got questions about managing payroll through the holiday season, bonuses, or leave, our Accounted4 Payroll Team is always here to help.
Let’s get those last pays of the year sorted, then it’s time to relax and unwind.. Or start Christmas shopping!
For any questions please contact the Accounted4 Payroll team.
Carolyn - Ext.837 - Email: carolyn.l@accounted4.co.nz
Kate - Ext.825 - Email: kate.c@accounted4.co.nz
Anne - Ext.831 - Email: anne.b@accounted4.co.nz
