Your last pay if you’re made redundant
If you’re made redundant from your job, check that your final pay is taxed correctly. If it’s not, you could get a bill from Inland Revenue at the end of the tax year.
COVID-19 financial support
If your income has been affected by COVID-19 you may be able to apply for financial support.
What’s in your final pay
The process of leaving a job because you’ve been made redundant is generally the same as when you decide to leave a job. What you’re eligible for in your final pay and how it’s calculated depends on such things as:
- how many hours you’ve worked since your last pay until you leave your job
- how long you have worked for your employer
- how long your notice period is
- whether you have any:
- unused annual holidays or days in lieu
- lump sum payments (also called ‘extra pay’) in your employment agreement
- redundancy payments in your employment agreement or negotiated as part of your redundancy package.
Unused sick leave or bereavement leave does not legally have to be paid out, but some employers may include it in a final payment.
More information
- Redundancy — Employment New Zealand
- Final pay — Employment New Zealand
- Giving notice — Employment New Zealand
- Lump sum payments — IR
- Notice component of the final pay — Employment New Zealand
- Payment for leave and holidays in final pay — Employment New Zealand
What’s taken out of your final pay
Your employer takes income tax and other payments, if eligible, off the total amount of your final pay. These can include:
- ACC levies
- child support
- KiwiSaver
- student loan repayments — the usual 12% repayment is taken from the total of your final pay before any other deductions or taxes are taken out.
ACC levies, child support and KiwiSaver contributions are not deducted from any negotiated redundancy payment you get.
More information
- I am being made redundant — IR
- ACC levies — business.govt.nz
- Changes to my child support details — IR
- Income tax for individuals — IR
- If my work situation changes — Making changes to my KiwiSaver account — IR
- Redundancy and retirement allowance — tax and entitlements — IR factsheet (PDF 111KB)
- Work out tax on your yearly income — Income tax calculator — IR
Unsure about your final pay
If you do not think that your final pay is correct, talk to your employer first.
Talking to your employer — Employment New Zealand
If you cannot resolve the problem, you can contact:
Contact Work and Income early for help
The earlier you contact Work and Income, the better.
You're not working — Work and Income
Help with finding work
Utility links and page information
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