Key Takeaway
New Zealand’s pay equity process is in Part 4 of the Equal Pay Act 1972, as amended in 2025. Current claims require work performed by a workforce that is at least 70% female over the previous 10 consecutive years and evidence of historical and continuing systemic sex-based undervaluation. Employment benefits may be relevant context, but different benefits do not by themselves establish a pay equity claim.
New Zealand’s pay equity process changed on 14 May 2025. The current process sits in the Equal Pay Act 1972, as amended by the Equal Pay Amendment Act 2025. Pay equity addresses systemic sex-based undervaluation of work predominantly performed by women. Employee benefits can form part of a wider review of employment terms, but different benefits do not by themselves establish a pay equity claim.
What pay equity means under current NZ law
Employment New Zealand distinguishes equal pay from pay equity. Equal pay means men and women receive the same pay for the same work. Pay equity means men and women receive the same pay for different work of equal value.
Part 4 of the Equal Pay Act 1972 contains the pay equity claim process. It applies where there is evidence of systemic sex-based undervaluation of work predominantly performed by female employees. The process is not located in Part 2A of the Employment Relations Act 2000.
The assessment can compare different work that requires the same or substantially similar levels of skill, responsibility, working conditions, effort and experience. A claim progressing through the process may lead to a settlement, but a settlement is not guaranteed.
What changed in May 2025
The Equal Pay Amendment Act 2025 came into force on 14 May 2025. Employment New Zealand says all pay equity claims that were unsettled or undetermined at that date were discontinued. A new claim can be raised under the amended Act if it meets the current requirements and has merit.
Under the current guidance, the work covered by a claim must be performed by a workforce that is at least 70% female and must have been so for the previous 10 consecutive years. There must also be reasonable grounds to believe the work was historically undervalued and continues to be subject to systemic sex-based undervaluation.
The 2025 changes also mean a new claim generally cannot be raised within 10 years of a settlement for the same work and employees unless the Employment Relations Authority or Employment Court permits it. Review clauses in settlements recorded before the change have no effect from the commencement date.
Where employee benefits fit
Employment New Zealand’s assessment guidance says parties examine the nature of the claimant’s and comparator’s work, their remuneration, and their terms and conditions of employment other than remuneration. A benefit such as insurance or additional leave may therefore be relevant context, depending on the claim and the employment terms being compared.
The Equal Pay Act does not create a general rule that every role must receive identical employee benefits. A difference in benefit eligibility does not, by itself, show systemic sex-based undervaluation or determine whether a claim has merit.
Employers can still review benefit access as a separate employment-practice exercise. The useful question is whether eligibility rules are clear, consistently applied and understood by employees, rather than assuming that one benefit design is required by pay equity law.
How to review benefit eligibility carefully
Start with an accurate inventory of the benefits offered to each role or employee group. Record the eligibility criteria, employer and employee costs, cover levels, waiting periods and any differences between permanent, fixed-term, part-time or casual employees.
Check that written policies, employment agreements, insurer eligibility rules and employee communications describe the same arrangement. Where group insurance is involved, confirm the current policy terms with the provider rather than assuming all employees can receive the same cover.
If a review identifies unexplained differences, investigate the reason before changing entitlements. An employment specialist can assess legal obligations, while an insurance adviser can explain available cover and provider rules. Related benefit decisions, including KiwiSaver employer contributions, remain subject to their own legal and policy requirements.
If an employer receives a pay equity claim
Employment New Zealand’s employer process says the employer must acknowledge a claim in writing within five working days. The employer then assesses whether the claim meets the statutory circumstances and requirements and has merit.
The guidance gives employers 60 working days to make those decisions, with limited extensions where there are reasonable grounds. If the claim proceeds, the parties assess the claimant’s work and appropriate comparators before bargaining toward a possible written settlement.
Use the current official process rather than relying on material written before 14 May 2025. Employers handling a claim should obtain advice for their circumstances, particularly before deciding whether a claim meets the statutory requirements or changing employment terms.
Sources checked
Employment New Zealand — Meeting your pay equity obligations, including the distinction between equal pay and pay equity.
Employment New Zealand — Changes to Equal Pay Act, including the treatment of claims and settlement review clauses after the 2025 amendment.
Employment New Zealand — Raising a pay equity claim and Responding to a pay equity claim, including eligibility, merit, timeframes, assessment and resolution.
New Zealand Legislation — Equal Pay Act 1972 and Equal Pay Amendment Act 2025, including the current Part 4 process and amendments that commenced on 14 May 2025. Sources accessed 29 July 2026.
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