New Zealand: Minimum Sick Leave Entitlement Set to Increase

Parliament passed the Holidays (Increasing Sick Leave) Amendment Bill on 19 May 2021, amending the Holidays Act. Under the new legislation, employees who have worked for a business for six months or more are entitled to 10 days of sick leave if they or a dependent are sick or injured.

Employees will be first entitled to 10 days’ sick leave on their next entitlement date, this date is based on their sick leave entitlement anniversary date (12 months after they were last entitled to sick leave).

Employees who already get 10 or more sick days a year will not be affected by this new legislation and the maximum amount of unused sick leave that an employee is entitled to will remain 20 days.

For more information on New Zealand’s tax, payroll and employment landscape, browse activpayroll’s Global Insight Guide to New Zealand.