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.