What Are ACC Levies and Why Do They Matter?
Kia ora! Noticed a deduction on your payslip labeled “ACC levy”? It’s a small but vital part of your pay in New Zealand. ACC levies fund the Accident Compensation Corporation, which helps all Kiwis with injury costs. This guide explains what ACC levies are, how they affect your take home pay, and why they’re important for your budget. Use our PAYE Calculator with ACC to see your net pay clearly.
What Are ACC Levies?
The Accident Compensation Corporation (ACC) provides no-fault injury cover for everyone in New Zealand workers, students, or visitors. If you get hurt at work, home, playing sports, or anywhere, ACC pays for medical care, rehabilitation, and income support. ACC levies are the payments that fund this government scheme.
There are three types of levies:
- Earners’ Levy: Paid by all working Kiwis, deducted from your salary or wages with PAYE tax.
- Work Levy: Paid by employers and self-employed based on business activities and industry risk.
- Working Safer Levy: Paid by employers to fund injury prevention programs.
For employees, the Earners’ Levy directly reduces your take-home pay, so we’ll focus on that.
Source: ACC: Understanding Levies
How Much Is the ACC Earners’ Levy?
For the 2025 tax year, the Earners’ Levy is $1.60 for every $100 of your earnings, up to a cap of $150,988. If you earn more, you only pay the levy on the first $150,988.
Example: Earn $60,000 a year? Your ACC levy is: [ \frac{60,000}{100} \times 1.60 = 960 ] That’s $960 per year, or about $18.46 per week (based on 52 weeks).
For high earners, the cap limits the levy:
- $200,000 income: Pay $1.60 × 1,509.88 = $2,415.81 (capped at $150,988).
Source: Inland Revenue: ACC Earners’ Levy Rates
Why Do ACC Levies Matter?
ACC levies fund a unique New Zealand system that protects everyone. If you’re injured, ACC covers:
- Medical costs (e.g., doctor visits, surgeries).
- Rehabilitation (e.g., physiotherapy).
- Income support (80% of your earnings if you can’t work).
This no-fault system means you don’t need to sue or prove blame, unlike many countries. For employees, the Earners’ Levy reduces your take-home pay, so understanding it helps you plan your budget. For employers, paying Work and Working Safer Levies ensures compliance and supports your workers.
Example: Break your leg playing rugby? ACC pays for your hospital bill and supports your income while you recover.
How ACC Levies Affect Your Pay
The Earners’ Levy is deducted with your PAYE tax, lowering your net pay. For example:
- Salary: $60,000/year
- PAYE Tax: ~$10,390 (2025 rates)
- ACC Levy: $960
- Total Deductions (without KiwiSaver or student loan): ~$11,350
- Take-Home Pay: ~$48,650/year or ~$935/week
Our PAYE Calculator with ACC shows your levy and net pay instantly, so you know exactly what’s in your pocket.
Who Pays ACC Levies?
- Employees: Pay the Earners’ Levy through PAYE deductions, handled by your employer.
- Employers: Pay Work and Working Safer Levies based on industry risk and payroll.
- Self-Employed: Pay all three levies annually, based on income reported to Inland Revenue via tax returns.
Seasonal workers or contractors on schedular payments may have different levy rules, but our calculator adjusts for these cases.
Source: Business.govt.nz: ACC Levies
Why Trust Our Calculator?
Our PAYE Calculator NZ uses 2025 IRD rates, including the ACC Earners’ Levy, for accurate results. We’re a Kiwi-owned team, trusted by 10,000+ New Zealanders. Our tool is free, mobile-friendly, and needs no sign-up. Learn more about why you can trust our calculator.
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Want to see how ACC levies affect your take-home pay? Use our free PAYE Calculator NZ! Enter your salary, tax code, and other details to get a clear breakdown in seconds. Stay sorted and plan your budget with confidence!
Table: 2025 ACC Earners’ Levy Examples
| Annual Income | ACC Levy ($1.60/$100) | Weekly Levy (52 weeks) |
|---|---|---|
| $30,000 | $480 | $9.23 |
| $60,000 | $960 | $18.46 |
| $100,000 | $1,600 | $30.77 |
| $200,000 | $2,415.81 (capped) | $46.46 |
Source: Inland Revenue: ACC Earners’ Levy Rates
More information about ACC levies
Find out more about ACC levies on the following websites:
You can also contact us.