Accident Compensation Corporation (ACC) Earners' Levy: Who Qualifies and What You Get
Understand how the ACC Earners' Levy provides no-fault personal injury cover for accidents in New Zealand through automatic salary deductions.
This scheme is a mandatory levy paid by people who work, providing insurance for personal injuries caused by accidents.
Who it's for
This scheme is designed for all earners. If you are earning an income, you are included in this system. It is a universal requirement for the working population in New Zealand to ensure everyone has access to injury support.
What you get
The primary benefit is no-fault personal injury cover. This means that if you suffer an injury caused by an accident, you are covered regardless of how the accident happened or who was at fault. This coverage applies to accidents that occur anywhere within New Zealand. Because it is a "no-fault" system, you do not need to prove someone else was negligent or at fault to access the protections provided by the scheme.
What it costs you
The cost of this cover is handled through an automatic deduction from your salary. Specifically, the amount taken is 1.53% of your earnings. Because this is a deduction made directly from your pay, you do not need to make separate payments to the issuing body; the funds are collected as part of your standard payroll process.
The catch to know
It is important to understand the specific limitations of this coverage. The scheme is strictly for accidental injuries. It does not provide cover for illnesses. If you become unwell, you will not be covered under this specific levy.
How to apply
- There is no formal application process required to join the scheme.
- Your employer is responsible for managing the levy by taking the deduction from your pay.
- You can verify your participation by reviewing your regular payslips to see the deduction.
- Contact your employer's payroll department if you have specific questions about how the deduction appears on your statement.