Do self-employed people pay more ACC than employees?

Yes. Self-employed workers in New Zealand pay both the earner levy (1.60%) and a work levy, which varies by industry classification. The work levy compensates for the absence of an employer-funded component. The total levy for a self-employed professional can be significantly higher than for an employee in the same industry, making it important to budget accurately for ACC costs when setting contract rates or pricing services.

What is the ACC employer levy used for?

The employer work levy funds ACC cover for workplace injuries sustained by employees. It is set by ACC based on the employer's industry risk classification and is paid separately from PAYE. Unlike the earner levy, there is no earnings cap on the employer work levy — it applies to total wages paid. The rate used in this calculator (0.8%) is an illustrative average; actual rates vary significantly by industry and are set annually by ACC.

NZ ACC Levy Calculator 2024/25 — Earner & Work Levy Estimate New Zealand

ACC Levy Calculator (NZ) · NZNew Zealand Tax

Example result based on the prefilled values.

Earner Levy

NZ$1,200.00

Work Levy (self-emp)

NZ$0.00

Employer Levy

NZ$0.00

Total Annual ACC

NZ$1,200.00

Weekly

NZ$23.08

Fortnightly

NZ$46.15

Continue your plan

Useful next calculations

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Use the New Zealand Income Tax Calculator

Continue with the related new zealand tax question this result raises.

Use the NZ Self-Employed Tax Calculator

Continue with the related new zealand tax question this result raises.

When to use this calculator

Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
When you want to compare employed, self-employed, or dividend-based income scenarios.
When you need a simple take-home estimate before running payroll or filing returns.
When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

A realistic New Zealand planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Annual Income (NZ$)

NZ$70,000

Employment Status

Employee (earner levy only)

Work Type (self-employed only)

Office / professional (low risk ~0.7%)

After entering these figures, review earner levy, work levy (self-emp) and employer levy together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Earner Levy

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Work Levy (self-emp)

Employer Levy

Total Annual ACC

This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.

Weekly

Fortnightly

Method & assumptionsAuthoritative sources

This calculator estimates your ACC levies for the 2024/25 tax year based on current rates published by the Accident Compensation Corporation (ACC). Employees pay only the earner levy, which is collected through PAYE by their employer and remitted to IRD on their behalf. Self-employed workers face both the earner levy and an industry-based work levy, which together can represent a meaningful cost — particularly for those in trades, construction, or physical occupations. The maximum liable earnings threshold of NZ$139,384 means the earner levy component is capped at approximately NZ$2,230 per year regardless of higher income levels.

The employer work levy rate shown (0.8%) is a representative average — actual rates vary by ANZSIC industry code and are set by ACC annually in the ACC Levy Regulations. Employers in high-risk industries such as forestry, fishing, or construction may face rates several times higher than the average. This calculator is intended as a planning guide only. For definitive levy amounts, self-employed workers and employers should log in to MyACC for Business or contact ACC directly to confirm their classification code and the applicable rate for their industry. Levy invoices are issued annually and can be paid in instalments.

Common mistakes

!Using an assumption that is not supported by a current local quote, bill, statement or official source.
!Treating a generic estimate as a lender, provider, payroll or tax authority decision.
!Mixing monthly and annual inputs without converting them consistently.
!Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
!Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

Run a second scenario with a cautious assumption so you can see the downside clearly.
Compare the result with the related calculators below before making a decision.
Check current local rules, eligibility and provider terms before applying or committing money.
Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

For the 2024/25 tax year, the ACC earner levy is NZ$1.60 per NZ$100 of liable earnings (1.60%), applicable up to the maximum liable earnings threshold of NZ$139,384. Both employees and self-employed workers pay the earner levy. It is collected automatically via PAYE for employees and included in provisional tax or end-of-year assessments for the self-employed.

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