How to pay public holidays
Public Holidays (definition)
Modern payroll software has made public holiday calculations simpler than ever. However, there is still some helpful information to know when processing public holidays in New Zealand. Knowing whether a day is considered an Otherwise Working Day for an employee is the most important place to start.
In terms of what an employee should be paid, if the relevant daily pay rate is known this should be used. However, an average daily pay rate can also be used for employees with irregular work patterns. Some employees may also accrue an Alternative Day (Day in Lieu) if they work on a public holiday that is considered an Otherwise Working Day for them.
If a public holiday falls on a weekend, it may be eligible for Mondayisation. Refer to the below definitions and resources to learn more.
PayHero can help calculate public holidays automatically using employee work pattern and timesheets data.