We heard you: Improved payroll flexibility has arrived in Aotearoa New Zealand

Last year, we made some updates to Xero payroll in our New Zealand plans. Since then, some of you have let us know that the changes didn’t quite meet your needs. We’ve listened to your feedback and are taking action.

One thing you told us was that you want to have more flexibility in how you pay yourselves or your employees. So, as of today you’ll be able to pay any number of employees on any Xero business plan.

Here’s how payroll will work within each plan:

• On the Ignite plan, which currently doesn’t include payroll, you’ll be able to add payroll for NZ$4 per person per month, excluding GST
• On the Grow plan, which currently includes payroll for just one person, you’ll be able to add additional employees for NZ$4 per person per month, excluding GST
• On the Comprehensive plan, which currently includes payroll for up to five people, you’ll be able to add additional employees for NZ$4 per person per month, excluding GST
• The Ultimate plan isn’t changing: payroll for 10 people is included and you’ll still be able to add employees for NZ$1 per person per month, excluding GST

Xero makes payroll easier
Our payroll solution helps you work smarter, stay compliant, reduce administrative tasks, and give employees clearer visibility into their pay. Here’s how:

• Pay your employees the correct amount, every time: Xero helps you to calculate pay, tax, and KiwiSaver contributions, giving you confidence in your numbers and supporting your IR compliance.
• Run payroll in minutes: Process payroll and pay your team in just a few clicks, making payday simpler and faster.
• Employee self-service: Give your employees access to the Xero Me mobile app to view their payslips, submit timesheets, and request leave, which means less admin for you.
• Seamless integration with Xero: Your payroll data syncs with your Xero accounts after each pay run, reducing manual data entry and saving you time.

What does this mean for you? 

If you’re currently using a Xero business plan, you might find these changes helpful for paying more people.

If you’ve already moved, or are moving,* to the Xero Ignite, Grow, Comprehensive or Ultimate plan and would like to stay on it, there’s nothing you need to do.

If the enhanced Xero Ignite, Grow or Comprehensive plan is a better option for you than moving up a plan, you can switch plans. The flexibility is yours.

Check out the right plan for your business, how these compare to your current plan and then see how to view and change your current plan.

*Note: Our previously announced migration plans for small business owners and partners stay in place and will take effect in September 2025. The payroll changes to the Xero Ignite, Grow and Comprehensive plans could make one of these plans a better option than moving up a plan. We encourage you to complete an assessment using the resources linked above.

There’s more on the way

Over the coming months we’ll be delivering even more valuable functionality across Xero. 

Later this year, Analytics powered by Syft will provide valuable insights to help you better understand your business performance and make more confident, data-driven decisions.

Discover everything that was delivered this past year and what’s coming on our new innovations webpage, The long and short of it.

Thanks for your feedback

We appreciate you choosing Xero and sharing your feedback with us. It helps us shape Xero to better meet your needs, so keep it coming! We hope these improvements will better support you in getting paid, making payments, and running payroll.