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.

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.

Dismissal — Employment New Zealand (external link)[L1]

Made redundant from a job

You may be eligible for redundancy payments in your employment agreement or negotiated as part of your redundancy package.

Redundancy — Employment New Zealand (external link)[L2]

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.

More information

Inland Revenue (IR) explains what’s included in any extra pay you're eligible to get.

Lump sum payments — IR (external link)[L3]

Employment New Zealand has information about:

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
  • KiwiSaver
  • 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.

Tracking my student loan balance — IR (external link)[L8]

Deductions when you are made redundant

ACC levies, child support and KiwiSaver contributions are not deducted from any negotiated redundancy payment you get.

Redundancy — Employment New Zealand (external link)[L9]

Redundancy and retirement allowance — tax and entitlements — IR factsheet (PDF 111KB) (external link)[L10]

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.

Redundancy and retirement allowance — tax and entitlements — IR factsheet (PDF 111KB) (external link)[L11]

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.

Workers in the agricultural industry — Employment NZ (external link)[L12]

More information

Find out more about:

Inland Revenue explains what to do for:

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 (external link)[L19]

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:

Finding and starting a job - Job hunting

You’re not working — Work and Income (external link)[L22]

Links

  1. https://www.employment.govt.nz/ending-employment/dismissal/
  2. https://www.employment.govt.nz/ending-employment/redundancy/
  3. https://www.ird.govt.nz/employing-staff/payday-filing/non-standard-filing-of-employment-information/lump-sum-payments
  4. https://www.employment.govt.nz/pay-and-hours/pay-and-wages/final-pay
  5. https://www.employment.govt.nz/ending-employment/giving-notice/
  6. https://www.employment.govt.nz/pay-and-hours/pay-and-wages/final-pay#scroll-to-2
  7. https://www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/calculating-payment-for-leave-and-holidays-in-final-pay/
  8. https://www.ird.govt.nz/student-loans/tracking-my-student-loan-balance
  9. https://www.employment.govt.nz/ending-employment/redundancy/
  10. https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir1000---ir1099/ir1009/ir1009-2019.pdf?modified=20200513034138&modified=20200513034138
  11. https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir1000---ir1099/ir1009/ir1009-2019.pdf?modified=20200513034138&modified=20200513034138
  12. https://www.employment.govt.nz/pay-and-hours/pay-and-wages/minimum-wage/minimum-wage-rates-and-types#scroll-to-4
  13. https://www.employment.govt.nz/pay-and-hours/pay-and-wages/deductions
  14. https://www.acc.co.nz/for-business/understanding-levies-if-you-work-or-own-a-business/
  15. https://www.ird.govt.nz/child-support/managing/details
  16. https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/making-changes-to-my-kiwisaver/if-my-work-situation-changes
  17. https://www.ird.govt.nz/income-tax/income-tax-for-individuals
  18. https://www.ird.govt.nz/income-tax/income-tax-for-individuals/how-income-is-taxed/work-out-tax-on-your-yearly-income
  19. https://www.employment.govt.nz/resolving-problems/steps-to-resolve/informal-actions/talking-to-your-employer/
  20. https://www.employment.govt.nz/employment-new-zealand/contact-us
  21. https://www.employment.govt.nz/resolving-problems/steps-to-resolve/mediation/
  22. https://www.workandincome.govt.nz/eligibility/lost-job/index.html

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