Your last pay when you leave a job
If you leave, retire, are fired or made redundant from a job, check that your final pay and deductions are correct.
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
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.
How other situations change what’s in your final pay
Retiring from a job
You may be eligible for retirement lump sum payments for example:
- long service leave
- retirement payments negotiated as part of your retirement package
- non-taxable allowances.
Fired from a job
There are a few reasons an employer might dismiss you from a job. Employment New Zealand explains:
- the fair process that needs to be followed
- when the reason for dismissal can affect the notice period and pay
- if needed, how to make a personal grievance.
Made redundant from a job
You may be eligible for redundancy payments in your employment agreement or negotiated as part of your redundancy package.
Other types of leave and your final pay
Unused sick leave or bereavement leave does not legally have to be paid out, but some employers may include it in a final payment.
Inland Revenue (IR) explains what’s included in any extra pay you're eligible to get.
Employment New Zealand has information about:
- final pay
- giving notice
- the notice component of the final pay
- payment for leave and holidays in final pay.
What’s taken out of your final pay
Your employer takes income tax and other payments, if required, off the total amount of your final pay. These can include:
- Accident Compensation Corporation (ACC) levies
- child support
- student loan repayments
- union fees
- board and lodgings.
How other situations change what’s taken out of your final pay
Student loan repayments
For 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.
Deductions when you are made redundant
ACC levies, child support and KiwiSaver contributions are not deducted from any negotiated redundancy payment you get.Redundancy and retirement allowance — tax and entitlements — IR factsheet (PDF 111KB)
Deductions when you retire from a job
You do not have to pay:
- ACC levies
- child support.
You have to pay:
- Kiwisaver deductions
- student loan repayments.
Agricultural employees getting accommodation, goods and services
If you’re an agricultural worker who also boards or rents accommodation at work, check the final pay conditions that apply.
Find out more about:
Inland Revenue explains what to do for:
- changes to child support details
- work situation changes and changing your KiwiSaver account
- income tax for individuals
- working out tax on your yearly income.
Unsure about your final pay
If you do not think that your final pay is correct, talk to your employer first.
If you cannot resolve the problem, you can contact:
After your final pay
Access resources to help you find a new job and see if you're eligible for support when you're not working: