Matariki is a standard public holiday in New Zealand. Employees who work on Matariki are entitled to be paid time and a half (1.5x their relevant daily pay) and receive an alternative holiday (day in lieu) if it is an otherwise working day. If they do not work, they are paid their relevant daily pay for the day.
Matariki, the Māori New Year, marks a distinct shift in New Zealand’s cultural landscape and employment calendar. Officially recognised as a public holiday under the Te Kāhui o Matariki Public Holiday Act 2022, it presents specific obligations for employers regarding remuneration and opportunities for organisations to deepen their cultural competency. Understanding the nuances of Matariki public holiday pay is critical for compliance, but embracing the spirit of the holiday is equally vital for a thriving workplace culture.
How is Matariki Public Holiday Pay Calculated?
For payroll officers, business owners, and HR managers, the introduction of a new public holiday often raises questions about calculation methods. Matariki is treated exactly the same as other standard public holidays in New Zealand, such as Waitangi Day or ANZAC Day. The governing legislation is the Holidays Act 2003.
The “Time and a Half” Rule
If an employee works on Matariki, they must be paid at least time and a half (1.5 times) for the hours they work. This is calculated based on their Relevant Daily Pay or Average Daily Pay (if the relevant daily pay is not possible or practicable to determine).
For example, if an employee’s standard hourly rate is $30 NZD, they must be paid at least $45 NZD for every hour worked on the Matariki public holiday. It is illegal to pay standard rates for work performed on this day, regardless of what is written in the employment contract, unless the contract offers a better deal than the legislation.
The Alternative Holiday (Day in Lieu)
In addition to the penal rates (time and a half), employees are entitled to an Alternative Holiday—commonly known as a day in lieu—if Matariki falls on a day that is an “otherwise working day” for them.
An “otherwise working day” is a day the employee would have normally worked had it not been a public holiday. Because Matariki is always scheduled for a Friday, this applies to the vast majority of full-time, Monday-to-Friday staff.
- Scenario A: Jane works Monday to Friday. She works on Matariki (Friday). She gets paid time and a half AND gets a paid day off later.
- Scenario B: John works only on Tuesdays and Thursdays. He is asked to work on Matariki (Friday). He gets paid time and a half, but he DOES NOT get an alternative holiday because Friday is not his normal working day.
Does Matariki Follow Mondayisation Rules?
Unlike Christmas Day, New Year’s Day, Waitangi Day, or ANZAC Day, Matariki does not have a fixed date on the Gregorian calendar. Instead, the date shifts annually based on the lunar calendar (Maramataka) and the rising of the Matariki star cluster. However, the legislation dictates that the public holiday will always be observed on a Friday.
Why Mondayisation Doesn’t Apply
“Mondayisation” is the legal mechanism that moves a public holiday to the following Monday (or Tuesday) if it falls on a weekend. Since Matariki is legislated to always fall on a Friday, Mondayisation rules are technically irrelevant for this specific holiday. It will never fall on a Saturday or Sunday.
This provides certainty for businesses regarding the long weekend. It effectively creates a guaranteed three-day weekend for standard Monday-to-Friday workers every winter, which can be planned for well in advance.
Common Workplace Scenarios
Navigating the Holidays Act 2003 can be complex. Below are the specific pay obligations for the most common employee scenarios encountered during Matariki.
1. Employee does not work (Standard M-F Schedule)
If an employee normally works on Fridays but takes the day off to observe Matariki, they are entitled to be paid for the day. They should receive their Relevant Daily Pay (what they would have earned if they were at work) or their Average Daily Pay. This ensures they do not lose income for observing the public holiday.
2. Employee is on Annual Leave
If an employee is on a scheduled period of annual leave that covers the Matariki Friday, that specific day must be treated as a public holiday, not an annual leave day. You cannot deduct an annual leave day from their balance for Matariki. They must be paid for the public holiday, and their leave balance remains untouched for that date.
3. Employee is on Sick Leave
Similarly, if an employee calls in sick on Matariki (or is on long-term sick leave) and it is a day they would normally work, they are paid for the public holiday, not sick leave. This preserves their sick leave entitlement.
4. Shift Workers and Roster Patterns
For businesses operating 24/7, determining if Friday is an “otherwise working day” requires looking at the roster pattern. If the roster is rotating and the employee was scheduled to work, or if there is a reasonable expectation based on work history that they would have worked, they are entitled to the public holiday provisions.
Casual Employees and Contractors
The rules differ slightly for non-permanent staff, and misclassification here is a common source of payroll errors.
Casual Employees
Casual employees who work on Matariki are entitled to time and a half pay. However, they are generally not entitled to an alternative holiday (day in lieu) unless they can prove that Friday has become a regular working day for them, effectively shifting their status closer to part-time.
Independent Contractors
Independent contractors are self-employed and are not covered by the Holidays Act 2003. They are not legally entitled to time and a half or a day in lieu unless these terms have been specifically negotiated and written into their Service Agreement. Employers should review contracts to ensure clarity.
Corporate Celebration Ideas
Beyond the legal requirement of Matariki public holiday pay, this event offers a unique opportunity to build team culture. Matariki is about remembrance, celebrating the present, and looking to the future. It aligns perfectly with mid-year business reviews and team bonding.
1. Host a Shared Kai (Feast)
Food is central to Matariki. Hosting a shared lunch or breakfast brings the team together. You might opt for a hāngī (if facilities allow) or simply ask staff to bring a plate. This aligns with the star Tupu-ā-nuku (associated with food grown in the ground) and Tupu-ā-rangi (food from the sky/trees).
2. Reflection and Goal Setting
The star Hiwa-i-te-rangi is connected to granting wishes and aspirations. Use the week leading up to Matariki to host a “future-focused” workshop. Instead of dry KPIs, frame the session around team aspirations and what you wish to achieve together in the coming year.
3. Remembrance Wall
Matariki is also a time to remember those who have passed (Pōhutukawa star). A workplace can create a respectful space or a moment of silence to acknowledge former colleagues who have passed away or to allow staff to reflect on personal losses in a supportive environment. This fosters deep psychological safety and empathy within teams.
Inclusive Workplace Practices
To celebrate Matariki authentically, businesses must move beyond tokenism. Integration of Māori values into the corporate structure should be done with respect and, where possible, guidance from cultural advisors.
Correct Pronunciation
Encourage staff to learn the correct pronunciation of Matariki and the names of the nine stars. Providing resources or a short workshop on Te Reo Māori basics demonstrates a genuine commitment to bi-culturalism in Aotearoa.
Flexible Working for Cultural Observance
While the Friday is a public holiday, the period of Matariki lasts for weeks. Some employees may wish to participate in pre-dawn ceremonies (hautapu) on other days. Offering flexible start times during this period allows staff to engage with their culture without stress.
Avoiding Commercialisation
Be wary of “Matariki Sales” or using the holiday purely for profit without cultural context. The focus should remain on the principles of the holiday: Matariki Hunga Nui (remembrance, celebrating the present, looking to the future). If you are creating marketing materials, ensure they are culturally appropriate and perhaps vetted by a cultural consultant.
Frequently Asked Questions
Is Matariki always on a Friday?
Yes, the legislation for the Te Kāhui o Matariki Public Holiday ensures that the holiday is always observed on a Friday. The specific date changes each year according to the lunar calendar (Maramataka), but the day of the week remains constant to facilitate a long weekend.
Can an employer require an employee to work on Matariki?
An employer can only require an employee to work on Matariki if the employee’s employment agreement states that they can be required to work on public holidays, and if Matariki falls on a day the employee would otherwise work. If these conditions are not met, the employee can refuse to work.
What if an employee falls sick on Matariki?
If an employee was scheduled to work on Matariki but calls in sick, they are paid their relevant daily pay (or average daily pay) for the public holiday. No sick leave is deducted from their entitlement. However, they do not receive time and a half or an alternative holiday.
Can I transfer the Matariki public holiday to another day?
Yes, an employer and employee can agree to transfer the public holiday to another working day. This agreement must be in writing and cannot be used to reduce the employee’s entitlements (pay or leave).
How is “Relevant Daily Pay” calculated?
Relevant Daily Pay is the amount the employee would have earned if they had worked on the day. This includes base salary, overtime, commission, and other taxable allowances. If this cannot be calculated (e.g., for commission-based staff with irregular income), Average Daily Pay (gross earnings over the last 52 weeks divided by days paid) is used.
Is there a surcharge for businesses operating on Matariki?
Many hospitality and retail businesses choose to apply a surcharge (often 15%) on Matariki to cover the increased wage costs (time and a half) of staff working that day. If a surcharge is applied, it must be clearly advertised to customers before they purchase.