Cost & Pricing · New Zealand
What a remote developer really costs a company in New Zealand
A line-by-line comparison of in-house cost, freelance marketplaces and managed augmentation for New Zealand teams.
2025-08-25 · 5 min read
Salary is roughly two thirds of the true cost
In-house cost in New Zealand is never the advertised salary. Add employer contributions, paid leave, equipment, software seats, recruitment fees and the desk itself, and the loaded figure usually lands 40–60% above base pay.
An augmentation rate is fully loaded by definition. At $20 per hour for a mid-level developer working 160 hours, the monthly figure is visible before you sign anything and does not move when someone takes annual leave.
The three sourcing routes compared
Freelance marketplaces look cheapest per hour and cost the most per outcome: no cover for absence, no supervision, no continuity when the freelancer takes a better-paid contract mid-sprint.
Agencies quote per project and price risk into the number. Managed augmentation sits between the two — a named person, a fixed hourly rate, a supervisor accountable for output, and a replacement clause if the fit is wrong.
Hidden costs people forget to budget
Recruitment time is real money. Two months of a hiring manager's attention plus an agency fee frequently exceeds the first quarter of an offshore contract.
Attrition is the other silent line item. Replacing an engineer costs the vacancy period, the ramp-up and the lost context. A supplier that keeps a bench absorbs that cost instead of passing it to you.
Building the comparison for your finance team
Put three columns on one page: fully loaded in-house cost, marketplace cost including your own management time, and the augmentation rate. Use NZD for the local column and be explicit about the exchange assumption.
Then divide each column by output — features shipped, tickets closed, campaigns launched. Cost per outcome is the only number that settles the argument.
Key takeaways
- Loaded in-house cost typically runs 40–60% above base salary in New Zealand.
- Marketplace rates hide supervision, absence and continuity costs.
- Augmentation rates from $20 per hour are fully loaded and predictable.
- Compare cost per outcome, not cost per hour.