Au Pair wages and tax
Au Pair wages are typically between $180 to $220 net per week for up to 40 hours of work (excluding tax, room and board). Some Au Pair agencies also provide a Demi Au Pair option – where the Au Pair works only 10 to 20 hours per week and earns $60 to $120 net per week.
Au Pairs typically enter New Zealand on a working holiday visa or student visa. Anyone working in New Zealand on a working holiday visa or student visa enjoys the same benefits and rights under New Zealand Employment Law as per any another employee in New Zealand.
Therefore, your Au Pair will become your employee and as such you must comply with all relevant New Zealand tax and employment legislation including (but not limited to):
- The Employment Relations Act
- The Holidays Act
- The Minimum Wage Act
- The Health and Safety in Employment Act
A reputable Au Pair agency should be able to provide you with tax advice, your employment obligations and even a payroll service. Remember that the whole Au Pair employment package is taxable (that includes the cash payment to the Au Pair as well as room and board). Income tax is not just paid on the cash component – it must also be paid on room and board as well.
If you have any questions about tax or your employment obligations – contact the Inland Revenue Department or the Department of Labour.