New Zealand Statutory and Private Employee Benefits, 2023 Update

New Zealand Statutory and Private Employee Benefits Report Overview

New Zealand has a comprehensive social security system, which is largely non-contributory. New Zealand nationals, permanent residents, and foreign workers temporarily employed in the country are all covered by social security. Work and Income New Zealand (WINZ) administer social security benefits in New Zealand. There is a subsidized retirement savings plan – KiwiSaver – that supplements the country’s flat-rate universal pension, known as New Zealand Superannuation. Unemployment and sickness benefits are paid after a minimum period of residence (two years for unemployment benefits), irrespective of employment history.

The New Zealand employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in New Zealand, including an overview of the state and compulsory benefits in New Zealand, detailed information about the private benefits in New Zealand, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in New Zealand.

Regulations Guiding Employee Benefits Market in New Zealand

Some of the key regulations guiding the employee benefits market in New Zealand are Social Security Act, 2018, Social Security Regulations, 2018, Superannuation and Retirement Income Act, 2001, Social Workers Registration Act, 2003, Residential Care and Disability Support Services Act, 2018, Artificial Limb Service Act, 2018, Vulnerable Children Act, 2014, and Employment Services and Income Support Integrated Administration Act, 1998 among others.

New Zealand Employee Benefits Market Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in New Zealand are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits: The New Zealand pension system comprises the following three pillars. The first pillar consists of a mandatory non-contributory state pension. The second pillar consists of voluntary occupational superannuation and the Kiwi Saver scheme. This is a defined contribution (DC) scheme. The occupational superannuation scheme is a private-sector superannuation scheme, while the Kiwi Saver scheme is a voluntary, work-based savings scheme intended to increase retirement savings. The third pillar comprises private-sector occupational DC schemes.

Short-Term Sickness Benefits: The Accident Compensation Act 2001 and the Holidays Act 2003 regulate short-term sickness benefits. All New Zealand citizens and individuals who hold a residence permit are covered under short-term sickness benefits. Sickness Benefit was replaced by Jobseeker Support (refer to unemployment benefits section) on July 15, 2013.

New Zealand Employee Benefits Market Segmentation by Private Benefits

The key private benefits offered by the employers of New Zealand are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: In New Zealand, supplementary retirement plans are provided through registered superannuation schemes. Occupational pensions are provided through registered or unregistered superannuation schemes. The schemes could be provided on a stand-alone basis or as a part of a master trust. Registered superannuation schemes could either be voluntary defined benefits or defined contribution schemes

Disability Benefits: In New Zealand, employers provide short-term disability benefits to their employees through group income protection insurance plans and key person cover.

For more insights on the New Zealand employee benefits market, download a free report sample

New Zealand Statutory and Private Employee Benefits Market Report Overview

Scope

This report provides a detailed analysis of employee benefits in New Zealand –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in New Zealand.

Key Highlights

• Ministry of Social Development (MSD), Inland Revenue, and Employment New Zealand are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In New Zealand, employers provide voluntary retirement benefits to their employees through Registered superannuation schemes and master trusts.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing the employee benefits market, and their impact on companies.