Money has long been one of the last workplace taboos. Historically, many New Zealand employment agreements contained clauses designed to keep pay private, and employees who discussed their salaries risked repercussions. That dynamic is changing.
On 20 August 2025, Parliament passed the Employment Relations (Employee Remuneration Disclosure) Amendment Bill, which is now awaiting Royal Assent and will soon be formally introduced into law. This legislation protects employees who discuss their own remuneration or enquire about others’ pay, with the goal of exposing, and ultimately helping address, pay inequities, especially those based on gender, Māori, and Pasifika status
Let’s explore what this means and how businesses should prepare.
What do we mean by pay transparency?
Pay transparency exists on a spectrum:
Individual transparency: employees have the freedom to discuss their pay with colleagues without fear of consequences.
Organisational transparency: employers provide clear pay ranges or salary bands for roles, clarifying how pay is determined.
Regulatory transparency: governments require reporting of pay gaps or the inclusion of salary ranges in job advertisements.
At its heart, transparency is about clarity, fairness, and accountability, building trust among employees and equipping employers to defend pay decisions robustly.
What do we mean by pay secrecy?
Pay secrecy is the opposite: employees are discouraged or prevented from discussing pay. This takes two main forms:
Contractual secrecy: pay secrecy clauses in employment agreements explicitly prohibit disclosure.
Cultural secrecy: even without clauses, workplace norms may discourage pay discussion, whether through discomfort or fear of repercussions.
Secrecy often hides pay inequities and erodes trust - studies globally reinforce its strong link to gender and ethnic pay gaps.
What the new law actually is
The Employment Relations (Employee Remuneration Disclosure) Amendment Bill introduces key protections under the Employment Relations Act 2000:
A new personal grievance ground is added: “adverse conduct for a remuneration disclosure reason”
Employees are protected when they discuss their own pay, or ask about others’, even if they do not actually disclose the amount.
Adverse conduct includes dismissal, denial of equal terms, differential treatment, or pressure to resign or retire. If such conduct occurs, employees can raise a personal grievance. The law introduces a reverse onus: once adverse conduct is shown, the employer must prove that the remuneration discussion was not a substantial reason.
Pay secrecy clauses in existing or future agreements are not enforceable. While clauses can remain on paper, any disciplinary action based on those clauses would be unlawful.
The law does not mandate employees to share their pay; disclosures are voluntary. Only the public service may face different obligations.
In plain terms: employees can now speak freely about pay without risk of retaliation.
Why has this change been made?
The reform aims to promote equity. Persistent gender, Māori, and Pasifika pay gaps in New Zealand remain pressing issues. By protecting pay conversations, the law encourages visibility and remediation of these gaps.
Internationally, similar efforts are underway:
The EU Pay Transparency Directive (2023) mandates pay range publication and pay gap reporting.
Australia's WGEA reporting (2024) requires gender pay gap disclosure for large employers.
In the US, many states outlaw pay secrecy clauses and require pay ranges in job ads.
New Zealand’s law aligns with this global shift.
What could this mean for employers?
Though it doesn’t force employers to publish pay data, the law could produce ripple effects:
More open pay conversations, potentially causing comparisons and tension.
Heightened scrutiny of pay structures as employees probe fairness.
Increased legal risk from pay equity or discrimination claims if disparities go unaddressed.
This is not merely a legal adjustment; it marks a cultural shift. The practical impacts may be limited initially - but could grow significantly over time.
How employers can get prepared
This is more than just compliance - it’s a chance to build trust. Consider the following steps:
1. Audit your pay data
Conduct a full review of base salary, allowances, and bonuses. Look for disparities by gender, ethnicity, or role.
Software like LiveRem streamline this: our People Data page already gives you a live view of base salary data, with total cash payments coming soon. It’s always current and removes manual workload. We also have a real-time gender pay gap dashboard so you can always know where you stand with your pay gaps.
2. Introduce pay bands or frameworks
Even if not public, structured salary bands help maintain consistency and support fair decision-making.
3. Review employment agreements
Remove or avoid including unenforceable pay secrecy clauses to support trust and clarity.
4. Train managers
Give managers the right language and context to confidently discuss pay decisions.
5. Communicate proactively
Even without publishing every salary, explain how pay is set and reinforce your organisation’s commitment to fairness.
6. Benchmark regularly
Use real-time market data to keep pay competitive and equitable, both within your organisation and across the market.
Final thoughts
This new law ends enforceable pay secrecy in New Zealand. It doesn’t mandate full transparency, but it ensures employees can talk freely about pay without fear.
The choice for employers is clear: wait for issues to arise, or lead the way by reviewing and refining pay practices now. Organisations that embrace transparency will build stronger trust, reduce risk, and enhance their brand as employers of choice.
The pay conversation in New Zealand just changed, and those who adapt early will lead the way.
