New Zealand Payroll

Everything you need to know about paying your NZ based staff

Effect of COVID-19 on Statutory Holidays

11 April 2020- 10 min read


We are not having enough fun with COVID-19, so Easter falls in the middle of Alert Level 4 and we hope ANZAC day will be shortly after. 

Stat Days worked are treated as normal, i.e. hours worked are paid at time and 1/2 and if the day worked was a normal working day for the employee, they become entitled to an Alternate Statutory Holiday to be taken on a future date.

Stat days not worked should be paid at the employee's Relevant Daily Pay (what they would have been paid if it had been a normal working day), or if that is unable to be determined, their Average Daily Pay.

Most of you will be able to determine what the employee would have been paid.
If you normally record stat days, then record the appropriate hours. If you really don't care, then record as normal pay.

Here are some examples. All of them assume you have negotiated with your employees in good faith.

Operating as (un)usual / work from home

You will pay your staff either their Relevant Daily Pay, or their Average Daily Pay as in the past.

Paying 100% of normal income

You will pay your staff either their Relevant Daily Pay, or their Average Daily Pay as in the past.

Paying 80% of normal income and optional leave top up

If you are using LWOP to reduce income,
You will pay your staff either their Relevant Daily Pay, or their Average Daily Pay as in the past.
LWOP will be applied to another day of the week.

If you have reduced your rate by 20% then this has reduced your employee's Relevant Daily Pay, so you can pay at using the new Relevant Daily Pay.

Note that employees can't take Annual Leave or Sick Leave on a Public Holiday.

Wages Subsidy only

Treat as a normal working day. Their Relevant Daily Pay is now 20% of the Wage Subsidy.

Wages Subsidy and optional Leave top up

As per wage subsidy only. Any leave used to top up will be on another day.


Statutory days worked are paid as normal, time and a half + Alternate Statutory Holiday if required.

Statutory days not worked are paid at the employee's new Relevant Daily Pay.

So if the employee would have been paid $585.80 for that week if there had not been a public holiday in that week, you should pay them the same amount for a week with a public holiday in it.




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Evan Lyon

Evan Lyon

KeyLink owner, 25+ years experience in designing, building and running mission critical IT systems. More than 12 years experience supporting and using payroll systems.


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