Christmas is fast approaching, which means employers across Aotearoa are preparing for one of the busiest periods of the year. Alongside managing leave requests, reduced hours, and shutdowns, one common question always pops up:
“What do I need to pay my employees for public holidays?”
To help make things easier, here’s a clear breakdown of how statutory (public) holiday pay works under New Zealand employment law, and how to get it right this Christmas.
When is an employee entitled to be paid for a public holiday?
An employee is entitled to be paid for a public holiday if the day would otherwise be a working day for them.
A day “would otherwise be a working day” when:
The employee normally works that day, OR
It is included in their agreed and predictable work pattern, OR
Rosters or recent work history show they usually work that day.
If the day would not otherwise be a working day, no payment is required, unless the employee actually works on that day (see next section).
What to pay if the employee does not work the stat day
If the day is an “otherwise working day” and the employee has the day off, you must pay them:
Their Relevant Daily Pay (RDP)
This is what they would have earned if they had worked that day.
If RDP is not possible to calculate (e.g., variable hours/earnings), pay Average Daily Pay (ADP) instead.
Examples:
A full-timer normally working 8 hours Monday to Friday is paid their normal day’s pay.
A part-timer who usually works Thursdays is paid their usual Thursday earnings.
A casual who does not have an agreed pattern and has not worked recent Thursdays may not be entitled.
What to pay if the employee does work the stat day
If the day is an otherwise working day and the employee works, they must receive:
Time and a half (1.5x) for the hours worked, and
An Alternative Holiday (day in lieu) to take later.
If the day is not an otherwise working day but the employee works:
Pay time and a half for the hours worked
No alternative holiday is owed
Shutdown periods over Christmas
If your business shuts down over Christmas and New Year:
Employees are still entitled to be paid for any public holidays that fall during the shutdown
As long as those days “would otherwise be working days” had the shutdown not occurred
You cannot make employees use annual leave on public holidays.
What if you have recently reduced employee hours?
This is common after restructures or temporary downturns.
For public holiday pay, you must consider the current agreed work pattern, not the old one.
Example:
Employee previously worked 9 hours per day but is currently working 7.5 hours/day during a temporary reduction
You pay 7.5 hours for the public holiday
Not the historical 9 hours
Public holiday pay must reflect what the employee would currently work, not what they used to work.
Common mistakes employers make (and how to avoid them)
Paying all staff for stat days regardless of their usual pattern
Only pay if it’s an otherwise working day.Using annual leave instead of stat pay
Not allowed.Not paying time and a half correctly
Apply the 1.5 multiplier to all hours worked on the public holiday.Forgetting to give an alternative holiday
Required whenever an employee works on a public holiday that is normally their work day.
Getting public holiday pay right is essential, not just for compliance, but for maintaining trust and fairness with your team during the busiest time of the year.
If you’re unsure whether a day is an “otherwise working day”, or you need help calculating RDP or ADP for your team, we can help. Christmas should be a time for celebration, not stress over payroll.
Get in touch with proHR for clear, practical advice tailored to your business.
