Holiday pay

All employees in New Zealand are entitled to at least 4 weeks paid annual holidays after 12 months employment. When an employee takes an annual holiday day (also known as annual leave), they are paid holiday pay instead of their regular wages or salary.

Casual workers and people on fixed-term contracts are not always paid holiday pay the same as permanent employees. These people may either have their holiday pay:

• included in their regular salary or wages or
• paid as a lump sum at the end of their contract

Holiday pay also includes:

• pay for a public holiday that an employee would normally work but does not as it is a public holiday and
• alternative holidays, where an employee gets a days paid leave in return for working on a public holiday (also known as a day in lieu)

Sometimes the term annual leave is used instead of holiday pay. Annual leave and holiday pay mean the same thing.