Calculate your final pay entitlements when leaving a job in New Zealand. This calculator works out your wages owed to the last day of work, your annual leave payout, notice pay if applicable, and any redundancy compensation. Final pay in New Zealand is governed by the Holidays Act 2003 and the Employment Relations Act 2000, and must be paid within the timeframes set by those Acts.
Final pay in New Zealand must include all wages earned up to the last day of employment, the payout of any accrued but unused annual leave, any notice pay owed, and any redundancy compensation specified in the employment agreement. Under the Holidays Act 2003, annual leave is paid out at the employee's ordinary weekly pay (OWP) or average weekly earnings (AWE) over the previous 12 months, whichever is greater.
Employees who have worked for less than 12 months are not entitled to a full four weeks of annual leave. Instead, on termination they are entitled to 8% of their total gross earnings during their employment. This covers the holiday pay they would have accrued had they completed a full year.
Employees with 12 or more months of service are entitled to a minimum of four weeks annual leave per year. On termination, any accrued but untaken leave must be paid out at the greater of ordinary weekly pay (roughly the weekly equivalent of the current salary) or the average weekly earnings for the 12 months prior to termination. This calculator uses the OWP basis, which is appropriate for most salaried employees with regular hours.
Final pay must be paid no later than the next payday following termination, or if there is no regular payday cycle, within 10 working days of the last day of employment. Note that final pay is subject to normal PAYE deductions. Annual leave payouts, notice pay, and redundancy payments are all treated as income for PAYE purposes. For redundancy payments above a certain level, a flat rate PAYE calculation may apply.
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