Tools

Holidays Act leave calculator.

Annual holidays under the Holidays Act 2003 are paid at whichever is higher — average weekly earnings over the last 52 weeks, or ordinary weekly pay. Enter both and this prices the leave.
Comparing AWE and OWP…
Average weekly earnings (AWE)
$1,500.00
Ordinary weekly pay (OWP)
$1,400.00
Rate used — the greater of the two
$1,500.00
Basis
Average weekly earnings
Daily rate (5-day week)
$300.00
Total holiday pay
$3,000.00

Annual holidays under the Holidays Act 2003 are paid at the greater of ordinary weekly pay and average weekly earnings. Indicative only — genuine cases involve variable hours, parental leave periods and 8% accrual on termination.

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Reviewed August 2026. Indicative only — not legal or payroll advice.

Holiday pay questions

Why are there two rates?

The Holidays Act 2003 requires annual holidays to be paid at the greater of ordinary weekly pay and average weekly earnings, so overtime-heavy construction crews are often paid above their base week.

Does overtime count?

It feeds average weekly earnings, which is exactly why AWE usually wins for site-based workers.

What about 8% pay-as-you-go?

That applies to genuinely intermittent or fixed-term work under 12 months, and on termination for accrued but unentitled holidays. It isn't a shortcut for permanent crews.

Do you run NZ payroll?

Yes. Holidays Act calculations, IR filing and public holiday rules for NZ construction sit in the same engine as the Australian award and EBA logic.