ACC Work Levies Explained: What NZ Employers Actually Pay and Why

ACC’s 2024 levy consultation results confirm an average Work levy rate of $0.69 per $100 of liable earnings for 2026/27, excluding GST. This is an average across businesses, not the rate every employer pays. The confirmed Earners’ levy is $1.52 per $100 of liable earnings, excluding GST.

For 2026/27, ACC confirms minimum liable earnings of $50,501 and maximum liable earnings of $156,641 for the Work and Earners’ levies. These settings apply from 1 April 2026. ACC has also confirmed further changes for 2027/28, so employers should check the current table rather than reuse an earlier payroll-year figure.

The Work levy funds the Work Account for injuries arising from paid work. Employers and self-employed people fund it through their ACC invoices. The Earners’ levy helps fund cover for injuries to earners outside work and is generally collected through PAYE for employees.

ACC assigns a classification unit based on the business activity recorded through its Business Industry Classification code. Classification units group businesses with similar activities and injury risk, and each has its own levy rate. ACC explains the process in its guidance on understanding a levy invoice.

A professional-services firm and a construction business should not expect the same Work levy rate because their workplace injury patterns and costs differ. Employers should check that the business activity shown on their ACC invoice still reflects what the business actually does, especially after a material change in operations.

Liable earnings also matter. Payroll data supplied to Inland Revenue is used in levy calculations, subject to the applicable minimum and maximum liable-earnings rules. Employee and contractor status can affect who is responsible for levies, but classification questions should be checked with ACC, an accountant or an employment specialist rather than inferred from an insurance arrangement.

ACC’s Experience Rating guidance says the programme affects eligible larger businesses by comparing aspects of their claims experience with similar businesses. Recent years receive greater weight in the calculation.

The No Claims Discount that previously applied to self-employed people and small businesses ended from 1 April 2026. ACC states that it was discontinued because it did not deliver the expected health and safety improvements and businesses outside the programme funded the discount.

From 1 April 2026, businesses in Experience Rating also see an additional Experience Rating Programme rate on their invoice, separate from any loading or discount. Employers should use their ACC invoice and MyACC for Business reports to understand the calculation that applies to them; the average Work levy cannot reproduce an individual invoice.

If an employee has an accepted injury claim and cannot work, they may be eligible for weekly compensation. ACC says weekly compensation can replace up to 80% of income, subject to eligibility and calculation rules.

ACC’s guidance for employers explains that an employer pays 80% of regular income for the first calendar week when the injury happened at work. For an injury outside work, the employee can ask to use sick or annual leave. From week two, an eligible employee can apply for ACC weekly compensation after the claim is approved.

Weekly compensation is not automatic. The employee needs an accepted covered injury, evidence of incapacity and the other information ACC requires. Payment timing and amounts depend on the person’s circumstances.

ACC describes itself as a no-fault personal injury scheme. Its introduction to ACC explains that ordinary illness and conditions related to ageing are not covered, while ACC can cover defined injuries, including some mental injuries and work-related gradual-process conditions.

That distinction matters when an employer reviews income protection. An employee unable to work because of an ordinary illness may not have an ACC weekly-compensation pathway. Group income-protection policies may provide cover for defined illness or injury after a waiting period, but eligibility, benefit calculations, exclusions and ACC offsets depend on the policy.

Use the ACC versus group income protection guide for a fuller comparison, or try the ACC and illness income-gap tool to illustrate how sick leave and a waiting period interact. The tool is educational and does not calculate an ACC entitlement or insurance payment.

Check the classification unit, liable earnings and levy components shown on the current ACC invoice. Confirm the listed business activity remains accurate, and investigate material differences from the prior year rather than assuming the average rate applies.

Make sure the people responsible for payroll, injury reporting and return-to-work support understand their roles. ACC provides quarterly claims reports to Experience Rating employers through MyACC for Business, while WorkSafe remains the primary source for workplace health and safety duties.

Then review the separate risk of employees being unable to work because of illness. Employee Lab can help employers examine how ACC, sick leave and group income protection fit together. If you want to discuss a new or existing scheme, contact Employee Lab.

ACC — Levy results, including confirmed 2026/27 levy rates and liable-earnings settings.

ACC — Understanding the Experience Rating Programme, including changes from 1 April 2026.

ACC — Income for your employee while they recover, covering first-week employer responsibilities and weekly compensation.

ACC — Introduction to ACC, explaining the scheme’s injury focus and general exclusions.