Benefits of Being a Contractor Vs Employee Nz

As the job market in New Zealand continues to evolve, many professionals are exploring the benefits of working as a contractor rather than an employee. While both types of employment have their advantages and disadvantages, there are several benefits to being a contractor in New Zealand.


One of the biggest benefits of being a contractor is the flexibility it offers. As a contractor, you have the freedom to choose your own work hours, projects, and clients. This means that you can enjoy a better work-life balance, and take on projects that fit with your skills and interests.

More control over work

Being a contractor means that you have more control over the work that you do. You can pick and choose which projects you want to work on, and have a say in the way in which the work is completed. This level of control can help to increase job satisfaction and motivation.

Higher earning potential

As a contractor, you have the ability to set your own rates, which can result in a higher earning potential than being an employee. You may also be able to claim expenses related to your work, such as equipment and travel costs, which can further increase your income.

Tax benefits

Contractors in New Zealand may also enjoy several tax benefits. Contractors are able to claim tax deductions for expenses incurred while running their business, which can include office expenses, equipment, and travel. Additionally, contractors have greater control over their income and can structure their work in a way that maximizes their tax savings.


Being a contractor means that you can enjoy a variety of projects and clients. This can help to keep your work interesting and challenging, and can also help you to develop a broad range of skills.

While being a contractor has many benefits, it is important to note that there are also some downsides. Contractors may need to handle their own billing and collection of payments, and may not have access to the benefits offered to employees, such as health insurance and retirement plans.

Overall, being a contractor in New Zealand can be a rewarding and lucrative career path. With the flexibility, control, and earning potential that it offers, it is a great option for many professionals. However, it is important to research and understand the responsibilities and risks associated with becoming a contractor before making the change from employee to contractor.

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