Wrap Up 2025–26 Christmas Payroll Season with Ease

As we swing into summer and festive cheer, it’s not just carols you’ll need to plan—your payroll needs holiday readiness, too! With the Holidays Act to content with, and a tight festive timeline, lets helps you navigate public holidays, shutdown orders, and year-end leave with heart and precision.

Know Your 2025–26 Public Holiday Dates & Rules

For 25 Dec 2025 – 2 Jan 2026, the key dates are:

• Thursday 25 Dec – Christmas Day
• Friday 26 Dec – Boxing Day
• Thursday 1 Jan 2026 – New Year’s Day
• Friday 2 Jan 2026 – Day after New Year’s Day
  As the public holidays do not fall on a weekend, there is no Mondayisation of public holidays this year.

Plan Important Payday Dates & System Closures

Many providers won’t process payroll 25–29 Dec and 1–5 Jan.  If your usual pay date lands on those dates, pre-schedule or move it forward—to avoid delays and stress (be aware of any employment agreements on when pay will be made).

Advise staff of close down dates now so everyone is aware and can plan for it (must give at least 14 days notice is legal minimum)

Best Practices: From Chaos to Calm

Lock in your payroll calendar now - No pay dates on 26, 27 Dec or 2, 3 Jan? Use scheduling tools or reschedule payday

Encourage staff to submit leave ASAP - Use your Leave Calendar or reports to capture future leave and avoid last-minute coverage gaps.

Automate payments & entitlements - Set up your annual holiday close-down and advise staff at least 14 days prior (now would be good) so everyone understands what's going to happen over the close down period and you can relax over the break.

Audit leave & compliance - Ensure you review annual leave balances are correct and understand the holiday pay requirements.  You can partner with us for a fresh compliance check.

Communicate clearly with your team - Be crystal-clear on which public holidays staff are paid for, how alternative holidays work, and any workaround pay dates.

Keep payday administration simple - Good records = happy IRD and staff. Record keeping is key to covering your backside. 

Public Holiday Pay Entitlements:

In New Zealand payroll terms, an “otherwise working day” is a day that an employee would normally have worked if it weren’t a public holiday.

Here’s how to determine it:

Look at the employment agreement and usual work pattern
Does the employee normally work on that day of the week? For example, if Christmas Day falls on a Thursday and the employee usually works Thursdays, it’s an otherwise working day.

Consider recent work history and rosters
If the employee has regularly worked that day in the past few weeks, that’s a strong indicator.

Check any planned leave or shutdown periods
If the business closes and the employee would have worked had it been open, it still counts as an otherwise working day.

Closedowns / shutdowns
There are special rules for closedown periods, so make sure you understand the implications and have communicated them with your team.  Effects on leave for those in their first year is big. 

Why it matters:
If a public holiday is an otherwise working day for an employee:

• They’re entitled to a paid day off if they don’t work.
• If they do work, they get time and a half plus an alternative holiday.

If it’s not an otherwise working day, they only get time and a half if they work, and no alternative holiday.