Contract or Permanent Work

Destination: New Zealand

The majority of roles in New Zealand will be permanent. Unlike the UK there is no tax incentive to contract. That said there is an increasing number of contract roles in both public and private areas. With the economy slowing and some organisations placing a freeze on permanent employment, and an impending election impacting the public sector, there is a move towards the flexibility offered by contractors. Those who choose this route can expect a premium of between 10 - 20% over a permanent salary.

Advantages of permanent roles

Typically 15 days of annual leave, plus 11 statutory holidays (and provincial holidays) and paid sick leave.
Opportunities to develop your career within the company could be more prevalent with permanent roles. In addition you will be entitled to attended courses for personal development.
Potential for an annual bonus.
Other paid benefits, likely to include pensions and an opportunity to allocate an annual sum of money to chosen benefits i.e insurances, extra holidays.

Advantages of contracting roles

Excellent rates of pay and regular income for the duration of your contract.
Roles are available on a more immediate basis meaning you can start earning quicker.
Opportunities to improve your skills whilst you search for permanent work.
Holiday flexibility (- you choose when to take time off and for how long).
You are your own boss. If you don’t like who you are working for it provides the flexibility to move on.

Disadvantages of contracting roles

No company benefits (i.e. no company health care or pension scheme, sick pay, professional training, etc).
No pay if you are sick.
Depending on a number of factors there may be gaps between your contracts. This can be caused by seasonal or economic factors which are outside your control.