Temp vs. Permanent: A Simple Guide to Pay, Taxes, and Your Rights in NZ
Trying to decide between the flexibility of a temp job and the stability of a permanent role is a big decision, and understanding the key differences can feel confusing.
9 min read
September 25, 2025
Trying to decide between the flexibility of a temp job and the stability of a permanent role is a big decision, and understanding the key differences can feel confusing. At Unite Recruit, we talk to people in Auckland, Wellington, and Napier every day who are weighing these exact options.
This guide uses our experience to answer the most common questions we hear. We will break down everything you need to know about pay, taxes, and your rights in simple, straightforward language.
After reading this guide, you will have a clear picture of both paths, so you can confidently choose the one that best fits your career and your life.
What It Means to Be a Temp vs. a Permanent Employee
A permanent role means a company hires you directly to be part of their team. You work for them, you are on their payroll, and your job is ongoing without a set end date. This direct relationship means you report to their managers and become a core part of their organization.
The setup for a temp role is a little different. When you take on temp jobs with Unite Recruit, your employment agreement is with us. We become your official employer, which means we handle your pay and make sure your rights are always protected.
You then go to work on-site with one of our trusted clients, which could be a construction project in Wellington or a busy warehouse in Auckland.
This arrangement gives you the benefit of our full support while you gain valuable experience with some of New Zealand's top companies.
Let's Talk About Pay: How Your Earnings Work
Understanding how and when you get paid is one of the most important parts of any job. The structure of your pay can look quite different between temporary and permanent roles, so it helps to know what to expect.
People in permanent positions usually receive their pay on a set schedule, which is often once every two weeks or once a month. You work for a full month, and then your pay for that period arrives in your bank account on a specific date.
Temp work is different. We understand from our experience helping people across New Zealand that consistent cash flow is incredibly important.
That is why we offer weekly pay jobs. This means you do not have to wait a month to get paid for the work you did last week. We process your pay every single week, so you have a reliable stream of income you can count on.
This simple change helps you manage your budget and pay your bills on time without stress.
Understanding Your Pay Rate: Hourly vs. Salary
Most temp jobs are paid on an hourly basis. Your pay rate is a set amount for every hour you work. This provides a very clear and transparent way to track your earnings. If you work more hours, you earn more money.
This direct link between your time and your pay is something many people find straightforward and rewarding.
Permanent roles are often paid with a salary. A salary is a fixed amount of money you are paid for the entire year, divided into equal payments for each pay period.
For example, a $60,000 annual salary would be paid out in fortnightly or monthly instalments. This gives you a predictable income that does not change week to week, which makes long-term financial planning very simple.
The best choice really just depends on the kind of predictability you prefer.
Holiday Pay Explained: The 8% Rule vs. Accrued Leave
This is a key area where temp and permanent roles differ, and knowing the rules is part of understanding your rights. For most temporary roles in New Zealand, your holiday pay is handled using the "pay-as-you-go" system. This means that with every paycheck, you receive an extra 8% of your gross earnings as holiday pay.
Permanent employees build up their holiday leave over time. After you work for twelve months, you become entitled to four weeks of paid annual leave. This leave "accrues," meaning you build it up as you work.
When you want to take a holiday, you request the time off and receive your normal pay while you are away. This system is designed for long-term roles and allows you to take larger blocks of paid time off to rest and recharge.
Navigating Your Taxes and Deductions
Your payslip includes important deductions that contribute to taxes and other programs. A good employer handles these for you, so you do not have to worry about the complex details.
Your Tax (PAYE) Is Handled For You
You can feel confident knowing that your income tax is managed correctly in both temp and permanent roles. In New Zealand, employers use the Pay As You Earn (PAYE) system.
This means your tax is calculated and deducted from your pay before it reaches your bank account. When you start any new job, you will fill out a standard IR330 form to set your tax code. After that, your employer manages the rest.
You will not have to put money aside or deal with a big tax bill at the end of the year, because it is all handled for you automatically.
KiwiSaver: Understanding Your Contributions
KiwiSaver is a great way to save for your future. When you start a permanent role, you are usually automatically enrolled. You contribute a percentage of your pay, and your employer also contributes a matching amount, which helps your savings grow faster.
For temp jobs, the situation is slightly different. You can still choose to be a part of KiwiSaver and make contributions from your pay. However, because assignments can be short-term, the requirement for employers to make matching contributions does not always apply in the same way. We believe in being honest and upfront about this.
It is a key difference to be aware of when choosing the work style that is best for your financial goals.
ACC Levies: You Are Covered No Matter What
Your safety is the top priority. Another small deduction you will see on your payslip is for ACC levies. This payment goes towards New Zealand’s accident insurance scheme. It means that if you get injured at work, ACC will help cover the costs of your treatment and support your recovery. This applies to every worker in the country, so you have peace of mind knowing you are covered. You have this protection whether you are working in a permanent office role or taking on labouring jobs in Napier for a few months.
Knowing Your Rights and Benefits
Understanding your entitlements is a key part of feeling secure and respected in any role. Your rights as a worker are protected by New Zealand law, though some benefits apply differently depending on your employment type.
Sick Leave, Bereavement Leave, and Public Holidays
Permanent employees receive entitlements to sick leave and bereavement leave after they have been with a company for six months. This gives you paid time off when you are unwell or need to be with your family.
For temp staff, these entitlements can also apply after six months of continuous service with us at Unite Recruit.
A more immediate benefit relates to public holidays. The rule is simple and fair: if a public holiday falls on a day you normally would have worked, you get a paid day off.
This ensures you do not miss out on income just because your assignment falls over a holiday like Anzac Day or Labour Day.
Job Security and Ending Your Role
A permanent position offers a high level of job security. There is no set end date, and your role is considered ongoing.
If you decide to leave, or if the company needs to end your employment, there are formal processes and required notice periods, often two to four weeks. This structure provides stability for your future.
Temp jobs offer a different kind of advantage: flexibility. An assignment has a clear start and end date, giving you control over your schedule.
When the project is over, you are free to take a break, travel, or jump straight into a new role.
This freedom is a lifestyle choice that many people prefer, as it allows them to gain experience across different companies and industries.
The Unite Recruit Advantage: What Being an Accredited Employer NZ Means for You
As an Accredited Employer NZ, Unite Recruit is held to the highest standard by the New Zealand government.
This means we have proven processes in place to ensure you are always treated fairly. Your safety is prioritized on every job site, and your rights as an employee are strictly protected.
You get this guarantee whether you are on a one-week assignment in Auckland or starting a long-term role with one of our trusted partners.
