49005 (2025). Debbie Ngarewa-Packer to the Minister for Workplace Relations and Safety

49005 (2025). Debbie Ngarewa-Packer to the Minister for Workplace Relations and Safety: Why is the Government removing commission payments and bonuses from holiday-pay calculations, and what assessment, if any, has been made of the effect on Māori workers in retail, hospitality, and sales where such payments form a significant portion of earnings; will the Minister release that assessment; if not, why not?

Hon Brooke van Velden: Excluding commission payments and bonuses from minimum holiday pay calculations will provide simplicity. The proposal that the hourly leave pay rate be based on employees' base wage for the day of leave replaces the multiple calculations and comparisons for leave payments under the current system. Leave payments will be simpler, more predictable, and easier to understand. Employers could still offer more generous rates of leave pay. The regulatory impact statement (RIS) produced by the Ministry of Business, Innovation and Employment (MBIE) considered the impact of leave changes on different population groups. Based on the data available, MBIE did not identify any disproportionate impacts on Māori employees. The RIS has been published on the following website: https://www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/holidays-act-reform