What you need to know about pay, taxation and pensions in New Zealand

It is only natural that one of the main considerations for UK GPs considering moving abroad is pay – and the related issues of taxations and pensions. In the third part of a five-part series based on a new guide by Pulse, Rachel Carter provides an overview on funding and pay in New Zealand

The good news for GPs looking to relocate to Aotearoa New Zealand (the Māori-language name for New Zealand) is that, financially, you are likely to be doing well, even compared with the UK.

Most UK GPs moving to New Zealand will take on a salaried role initially, where they can expect to earn between NZ$220,000 and NZ$260,000 (approximately £97,000 – £114,000) on average, according to recruitment consultants Good Together. However, it is important to note that this is based on working 10 clinical sessions a week, and most international GPs will work eight.

Good Together says some salaried packages might sit outside this range depending on location, patient population, and practice model. New Zealand’s statutory minimum is four weeks of annual leave and 10 days of sick leave per year. The country also observes 11 public holidays each year. Most GP clinics will cover the cost of indemnity insurance and annual practising certificate (APC) fees for their doctors. They also often provide an allowance for CPD, as well as a contribution towards relocation costs, although this can vary between employers.

All income tax is collected nationally in New Zealand (see below) and employers will deduct PAYE contributions automatically. Once GPs have obtained full registration with the Medical Council of New Zealand, they can also work as self-employed independent contractors. Arrangements could involve supporting a practice on a long-term basis or working as a locum. Independent contractors are responsible for their own tax, ACC levies, and retirement savings.

Short term locum rates typically range from around NZ$550 to NZ$750 per session (£240 to £330) depending on experience, location, and demand, according to figures from Good Together. GPs who locum in areas that are different to where they live are often offered accommodation for the duration of the placement, and reimbursement of travel costs. Dr Valerie Kuan, who moved from the UK in 2022, has been working as a locum in Auckland for almost a year: ‘It has been lovely – it’s a great way to live flexibly and while you have to be prepared for uncertainty, I haven’t had any problems finding work,’ she says.

New Zealand income tax rates

Funding mechanisms

For practice owners, you may consider it good or bad news that the funding models for general practice in New Zealand is very similar to those in the UK – with one major exception.

Capitation funding was introduced in New Zealand in 2002 and is the core funding for general practice, aiming to support both equity and access. Practices receive a set payment per enrolled patient, per year. It is primarily calculated based on age and gender. While the core structure has remained largely unchanged over the last 20 years, it is expected to be updated in July 2026 to include multimorbidity, rurality and socioeconomic deprivation factors.

Funding is distributed to practices by PHOs, through the Primary Health Organisation Services Agreement. This is the core contract between PHOs and Health New Zealand, which is updated annually to reflect funding and policy changes.

Approximately 50% of GP income comes from capitation. But there are also co-payments, which – alongside other subsidies – account for the rest.

Co-payments are set at practice level and while the Government has not generally imposed strict limits, it does publish an annual guideline on how much practices can increase the fees by. Care is free for children under 14 and fees are capped for New Zealanders with low-income, older adults, and people with 12 or more GP visits per year.

Dr Buzz Burrell, chair of the GP advocacy organisation, General Practitioners Aotearoa (GPA), estimates copayment fees currently range from $40 to $90 NZD per visit among practices – not including those delivering low cost access. ‘When the Government first established capitation over 20 years ago, they were hoping there would be a relatively standardised fee to see the GP,’ he says. ‘But nevertheless, different GPs set their fees according to what they thought patients could afford, what the market was driving at the time, and what their overheads were.’

A proportion of New Zealand’s GP practices receive additional capitation funding to support populations with higher health needs. In return, they cap copayments at a lower rate for those that struggle to afford care. The Very Low Cost Access (VLCA) scheme is voluntary but to be eligible practices must be serving a 50% high needs population, defined as Māori, Pacific, or patients living in an area that is classified as New Zealand Deprivation Index quintile 5.

Another source of income for GPs is subsidies paid by the Accident Compensation Corporation (ACC). The ACC provides personal injury cover for everyone in New Zealand. It pays a set fee for GP consultations that are injury related. However, this usually only partially covers the cost, so patients can expect to pay a copayment for an ACC consultation as well.

Pensions

KiwiSaver is the main pension scheme, administered by the Inland Revenue Department. Employers are required to pay a minimum 3% contribution, while GPs can contribute anywhere between 3% and 10%, as well as making additional voluntary contributions. GPs working as independent contractors can also make voluntary contributions to the scheme, but the employer does not contribute. Both salaried doctors and independent contractors who are eligible members can receive a government contribution of up to 260 NZD per year.

Some GPs choose not to join straight away because KiwiSaver funds are typically locked away until retirement, unless you leave New Zealand permanently (with some other exceptions, such as serious illness, buying a first home, or financial hardship). However, if you choose to leave New Zealand before retirement you can withdraw all funds after a year, with the exception of any contributions made by the government. Meanwhile, the state pension NZ Super is available to permanent residents, but this is dependent on how long you have lived in the country. People born after 1977 must have resided in New Zealand for 20 years to qualify.

Elsewhere, Dr Luke Bradford, president of the Royal New Zealand College of GPs (RNZCGP), who moved over from the UK in 2010, says the private pension model does not exist in the same way as the UK. Many people in New Zealand generate retirement savings through investments such as rental property, shares, or businesses instead, he says. Where a private pension scheme would most likely be used is by UK GPs who wish to transfer their NHS pension. 

To do this, the NHS Business Services Authority says doctors must meet the following criteria:

• The receiving scheme is registered with HMRC as a Qualifying Recognised Overseas Pension Scheme (QROPS), which can be checked using its publicly available list.
• If the member has two years or more qualifying membership in the NHS scheme and the receiving QROPS is an occupation scheme that provides defined benefits.
• If the member has less than two years qualifying membership in the NHS Pension Scheme, the receiving QROPs is an occupational scheme that provides defined benefits, or a QROPs that provides ‘flexible benefits’.

The NHS Business Services Authority provides an overseas pension transfer and guide, where GPs can find the overseas transfer request form. They will also need to complete form APSS263, which can be found on the gov.uk website.

The next part of the series will focus on the immigration process and regulation. You can download the full report here