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A plain-English breakdown of charge-out rates: wages, holiday pay, ACC, KiwiSaver, admin and margin, with a worked example. Written as a guide, not a sales page.
A labour hire charge-out is the worker’s wage plus statutory on-costs (ACC, KiwiSaver, leave loadings), plus the provider’s screening, payroll and margin. There is no single published national rate. Weekday warehouse and production sit near the relevant minimum plus those layers. Licensed forklift, nights and food-site work sit higher.
If you want our model and guarantee, go to labour hire rates. This guide explains the category — including how competitors typically price.
Start with the wage you would pay that person as a casual or hourly employee. Then add what the employer must pay anyway: ACC levies, KiwiSaver employer contributions where the worker is contributing, and leave loadings (annual holidays under the Holidays Act are commonly costed as a percentage on top of the hourly wage for casuals).
Then add the labour-hire layer: recruitment and screening, payroll, replacement cover, insurance, and margin. Two providers can pay the same wage and still quote different charge-outs because that last layer differs.
Illustrative only. From 1 April 2025 the adult minimum wage is $23.50. This example uses a $26.00 warehouse wage — above the minimum, not a promise of anyone’s pay rate.
| Layer | Assumed figure | Notes |
|---|---|---|
| Base wage | $26.00 | Illustrative weekday storeperson |
| KiwiSaver (employer 3%) | $0.78 | If the worker is in KiwiSaver |
| ACC (illustrative ~0.7%) | $0.18 | Actual levy depends on classification |
| Leave loading (illustrative 8%) | $2.08 | Common casual holiday loading; not legal advice |
| Employed cost before margin | ~$29.04 | Before screening, payroll, replacement, margin |
| Admin + margin (illustrative) | varies | This is where quotes diverge |
A calculator can replace this table later without changing the page structure. Do not treat the last row as NZ HR InOne’s published rate.
Structure only. Confirm current awards, minimum wage and your site loadings before you budget.
| Role | What usually sits underneath | What usually costs more |
|---|---|---|
| General labour / packer | Near the relevant minimum plus on-costs | Food-site rules, nights |
| Warehouse / storeperson | Often a step above general labour | WMS-skilled, peak OT |
| Production / line operator | Similar to warehouse, plus hygiene briefing | High-care, medicals |
| Licensed forklift | Higher wage band + ticket cost | Reach, order picker, coolstore |
| Labour hire | Permanent hire | |
|---|---|---|
| When it is cheaper | Short peaks, cover, uncertain volume | Stable year-round hours |
| What you buy | Hours, plus replacement if they are wrong | A person you employ |
| Hidden cost | Margin and minimum periods | Recruitment time, notice, quiet months |
When you are ready to buy, use our pricing page and labour hire. Contract questions: FAQ.
Per hour, a charge-out is higher than a wage. Over a short peak it is often cheaper than a permanent hire you cannot fill with work in February. Over a full year of stable hours, permanent is usually cheaper. Compare the period you actually need, not a slogan.
Different wage assumptions, different loadings, and different margins. A cheap quote may have left out KiwiSaver, leave, or a realistic ticketed rate. Use the checklist on this page.
The guide explains the category. A quote is a different document. Send the role and shift.
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