What does it really cost to employ a stylist in New Zealand?
More than the hourly rate, and the gap is bigger than most owners expect. Here's what goes on top, and why it hits harder than it looks.
By Stevee Devonda, co-owner of Iron + Ivy, Queenstown, and Revolver, Arrowtown. Updated 17 October 2026.
What you pay on top of the wage
- KiwiSaver. At least 3.5% of gross pay as the employer contribution, rising to 4% from 1 April 2028.
- Annual leave. 4 weeks a year, paid.
- Public holidays. 12 a year including your regional anniversary day.
- Sick leave. 10 days a year once they've been with you six months.
- ACC. A work levy on their pay, at a rate set by your industry classification.
The adult minimum wage is $23.95 an hour from 1 April 2026. Most qualified stylists earn more than that.
The bit that catches owners out
Add up leave, public holidays and sick days and a full-time stylist can be away from the floor for around two months of the year, on full pay. Every dollar they cost still has to be earned in the weeks they're actually there.
Put it all together and a stylist on $30 an hour can cost you well over $35 for every hour they're actually working. Then take out the hours their book isn't full, and each client hour has to carry even more.
And then the ramp-up
A new stylist rarely starts with a full book. For the first few months you're paying their whole wage while their takings build. That's the cash most owners forget to set aside, and it's why a hire that makes sense on paper can still squeeze the bank account.
The questions worth answering before you post the job ad: how much do they need to bring in each week to pay their way, how many months until they get there, and how much cash do you need sitting in the bank to get through that stretch?
The rules are changing
The Employment Leave Act passed in July 2026 and will change how leave is worked out, after a transition period expected to end in mid 2028. Until then the Holidays Act 2003 rules above still apply. Check employment.govt.nz for the current rules.
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General information, not employment, tax or financial advice.