Chair rental in New Zealand: what to charge, and the 2026 contractor test.
A chair renter can be great for a salon, or a quiet way to lose money every week. Here's how to set rent that covers the chair, and what changed in the law this year.
By Stevee Devonda, co-owner of Iron + Ivy, Queenstown, and Revolver, Arrowtown. Updated 17 October 2026.
Start with what one chair costs to run
Every chair carries its share of the salon's running costs, whoever sits in it: rent, power, software, insurance, cleaning, the front desk. In a lot of salons that share is more than the rent being charged for it.
When it is, you're paying for someone to work in your salon, before the towels, backbar and card fees you might be covering too. And a renter who looks like a good deal against an empty chair can still earn the salon far less than an employee would.
Three numbers worth knowing
- The floor: the lowest rent that covers the chair's share of running costs and anything you supply.
- The employee match: the rent that would leave you as well off as employing someone in that chair.
- A fair middle: somewhere between the two, as a weekly or daily rent.
The 2026 gateway test
The Employment Relations Amendment Act 2026, in force from 21 February 2026, added a gateway test for contractors. If all five of these are true, the person is likely to be a "specified contractor" rather than an employee:
- There's a written agreement that says they're an independent contractor.
- Apart from while they're doing this work, nothing stops them working for anyone else.
- They don't have to be available at set times or days or for a minimum amount of time, or if they do, they can send someone else in their place.
- The arrangement can't be ended just because they turn down extra work.
- They had a fair chance to get independent advice before signing.
If any of the five is missing, the older test applies: what the relationship is really like day to day. The salon setting their hours and prices, supplying everything, running their bookings and owning their client list all point towards employee.
The boxes only count if they're true in how the chair really runs, not just on paper. This is a guide, not legal advice. Check employment.govt.nz and talk to an employment lawyer or adviser before you set up or change a rental agreement.
Chair Rental vs Employ Calculator
The Chair Rental vs Employ Calculator is part of The Numbers Room, opening soon. Get early access and you'll be first through the door.
An example. General information, not legal, employment or financial advice.