NZ Business Tools
Payroll Software NZLast updated: March 2026IRD Compliance Rated

Best HR Software NZ 2026 — Holidays Act Compliant

Compare the best HR software for NZ businesses — Employment Hero, MyHR, and ELMO reviewed with Holidays Act 2003 compliance, NZD pricing, and IRD integration ratings.

Quick Recommendation

For most NZ SMBs, Employment Hero is the best HR software — it covers payroll, HR, and Holidays Act leave in one platform at a competitive NZD price.

NZ employment law is genuinely complex. The Holidays Act 2003 alone has caused hundreds of millions of dollars in back-pay claims against major NZ employers — many of whom were using software that calculated leave incorrectly. Getting HR right matters.

This guide covers the best HR software for NZ businesses, with honest ratings on Holidays Act compliance, payroll integration, and NZD pricing.

Why the Holidays Act Makes NZ HR Hard

NZ's Holidays Act 2003 calculates leave entitlements differently from most countries. Leave must be calculated based on whichever is higher:

  • Ordinary weekly pay — what the employee normally earns per week
  • Average weekly earnings — average over the past 12 months

For employees with variable hours, commission, or overtime, this calculation is genuinely difficult. Dozens of NZ organisations — including government departments, major retailers, and DHBs — have had to make multi-million dollar remediation payments after getting it wrong.

The practical fix: use HR software that automates the Holidays Act calculation correctly.

1. Employment Hero — Best All-in-One HR + Payroll for NZ

NZD Pricing: HR Platform from ~$9/employee/month | Payroll from ~$6/employee/month
Holidays Act compliant: ✅ | IRD payday filing: ✅ | Free trial: Available

Employment Hero is the leading all-in-one HR and payroll platform for NZ SMBs. It combines employee management, leave tracking, payroll, and IRD compliance in one system — eliminating the need to sync separate HR and payroll tools.

What NZ businesses love:

  • Holidays Act leave calculations automated correctly for NZ law
  • Full IRD payday filing, KiwiSaver, and ACC levy support in payroll
  • Employment contracts and onboarding documents built in
  • Performance reviews, learning modules, and benefits management
  • Employee self-service app (apply for leave, view payslips)

Watch out for: Pricing per employee adds up for larger teams. Some features feel like they're built for Australian market first. Implementation takes time to set up correctly.

Best for: NZ businesses with 5–200 employees wanting HR and payroll in one system.

2. MyHR — Best NZ-Built HR Platform

NZD Pricing: From ~$99/month for small teams
Holidays Act compliant: ✅ | Payroll: Integrates with external payroll

MyHR is a NZ-bui

Employment Hero: HR + Payroll in One

The only NZ HR platform that combines payroll, IRD filing, Holidays Act leave, and employee management in one system.

lt HR platform focused specifically on NZ employment law. It doesn't include payroll, but for businesses already using Xero Payroll or another NZ-compliant payroll tool, MyHR handles the HR side well.

What NZ businesses love: NZ-specific employment templates, contracts, and HR policies. Strong Holidays Act leave tracking. NZ-based support team that understands local employment law. Great for managing HR compliance without needing a dedicated HR manager.

Watch out for: Doesn't include payroll — you'll need a separate payroll tool.

Best for: NZ businesses that already have payroll sorted and need HR-specific help with compliance, contracts, and leave management.

3. ELMO — Best for Larger NZ Businesses

NZD Pricing: Custom (larger organisations)
Holidays Act compliant:

ELMO is an AU/NZ HR platform targeting medium to large businesses (50+ employees). It covers performance management, learning & development, recruitment, and payroll in one enterprise-grade system. Overkill for small businesses.

NZ HR Software Comparison

FeatureEmployment HeroMyHRELMO
NZD pricing~$9/employee/monthFrom ~$99/monthCustom
Holidays Act compliance
Payroll included
IRD payday filing❌ (via external)
NZ-built❌ (AU-based)❌ (AU-based)
Best for team size5–2002–10050+

Key NZ HR Compliance Checklist

  • Employment agreements — all NZ employees must have a written employment agreement
  • Holidays Act leave — 4 weeks annual leave calculated correctly
  • KiwiSaver — employer and employee contributions deducted and remitted
  • Public holidays — 12 NZ public holidays with correct penal rates
  • Sick leave — 10 days sick leave per year (increased from 5 in 2021)
  • Parental leave — primary carer leave entitlements tracked

For payroll compliance: Best Payroll Software NZ — IRD Compliant | For accounting: Best Accounting Software NZ

Our Top NZ HR Software Picks

We earn a commission from some links — this never affects our rankings.

Affiliate Disclosure: NZ Business Tools earns commissions from affiliate links on this page. This never affects our reviews or rankings — we only recommend software we believe is genuinely suitable for NZ small businesses. All NZD pricing is verified at time of publication; check provider websites for current rates.

Frequently Asked Questions

What HR software is best for NZ businesses?

Employment Hero is the most comprehensive HR software for NZ businesses — it combines payroll (IRD compliant), HR, and Holidays Act leave management in one platform. MyHR is a good choice if you only need HR (not payroll).

Does NZ HR software need to comply with the Holidays Act?

Yes. NZ's Holidays Act 2003 requires complex leave calculations, especially for employees with variable hours. Your HR software must correctly calculate annual leave based on ordinary weekly pay or average weekly earnings, whichever is higher.

What is the Holidays Act problem in NZ?

Many NZ businesses have historically underpaid leave entitlements due to Holidays Act complexity. The government has identified widespread non-compliance. Using compliant HR software that automates the calculations is the most practical way to avoid this risk.

How much does HR software cost in NZ?

NZ HR software costs between $6–$20 per employee per month depending on the platform and features included. Employment Hero starts from around $9/employee/month for the HR platform.

Does Employment Hero work with NZ IRD?

Yes — Employment Hero Payroll (formerly KeyPay) is fully IRD-compliant, supporting payday filing, KiwiSaver, and ACC levy calculations for NZ businesses.