Are allowances and bonuses mandatory in New Zealand?

In New Zealand, allowances and bonuses are not mandatory, but they may be offered at the employer’s discretion to recognize specific conditions, responsibilities, or skills associated with a role. Horizons follows local standards and aligns any additional compensation with client agreements.


What Are Allowances?

Allowances are typically offered to compensate employees for:

  • Special skills or qualifications that go beyond the basic requirements of the role

  • Additional responsibilities, such as supervisory or leadership duties

  • Unpleasant or inconvenient working conditions, such as remote locations or night shifts


Common Types of Allowances

While not legally required, the following allowances may be agreed upon and included in an employee’s contract:

  • Accommodation allowance – for housing-related expenses

  • Meal and clothing allowance – to cover food or uniform costs

  • Travel allowance – for work-related travel outside the normal commute


Are Bonuses Provided?

Bonuses are also not mandatory under New Zealand employment law. However, clients may choose to offer performance-based or discretionary bonuses. These must be clearly outlined in the employment agreement if applicable.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article