Starting your first real job is exciting, but it comes with paperwork, rules, and a pay system most teens have never dealt with before. This guide explains what you need BEFORE you start, what the different minimum wages are, how to pick the right tax code, whether to join KiwiSaver, and how to read your first payslip without getting confused by all the deductions. It's written for 15 to 19 year olds getting their first paid job in New Zealand.
| Type | Rate (April 2026, per hour) | Who Qualifies |
|---|---|---|
| Adult minimum wage | ~$23.50 | 16+ (most workers, once starting-out period ends) |
| Starting-Out wage | ~$18.80 (80% of adult) | 16-17 in first 6 months with employer; OR 18-19 on benefit 6+ months before starting; OR 16-19 in industry training 40+ credits/yr |
| Training wage | ~$18.80 (80% of adult) | 20+ in formal industry training (60+ credits/yr) |
| Under 16 | No legal minimum | Under-16s aren't covered by the Minimum Wage Act |
After 6 months working continuously with the same employer, a 16 or 17 year old MUST move off the Starting-Out rate onto the adult minimum. Watch for this: some employers forget, and it's money you're owed. Check your pay rate in month 7.
On day one (or the day before), your employer will hand you an IR330 form. This is the Tax Code Declaration. It determines how much tax comes out of your pay. Get it right and you'll pay about the right tax all year. Get it wrong and you'll either pay too much (and wait for a refund) or too little (and get a bill at year-end).
| Code | Meaning | Who Uses It |
|---|---|---|
| M | Primary income (main or only job) | Most teens with one job |
| M SL | Primary income, has a student loan | Teens at uni working part-time with a loan |
| SB | Secondary income, total earnings under $15,600 | Second job if total pay across both is under $15,600 |
| S | Secondary income, $15,600 to $53,500 total | Typical second job for full-time workers |
| SH | Secondary income, $53,500 to $78,100 total | Higher earners with a second job |
| ST | Secondary income, $78,100 to $180,000 total | High earners with a second job |
| ND | No declaration (default if form not filled) | AVOID - tax is 45% |
The golden rule: use M on your MAIN job (the one you earn most from) and a secondary code (SB/S/SH/ST) on any other job. Using M on both means both jobs apply the 10.5% bracket to your first $15,600 of income - so the tax system thinks your income is spread across two separate $15,600 bands when really it's one $30K+ lump. Outcome: tax shortfall at year-end.
KiwiSaver is NZ's retirement savings scheme. You contribute a percentage of your pay, your employer adds some, and the money grows until age 65 (or sooner to buy a first home). For under-18s, joining is OPTIONAL.
| Factor | Under 18 (you choose) | 18 and Over (auto-enrolled) |
|---|---|---|
| Auto-enrolment | NO - you opt in | YES - you opt out within 8 weeks |
| Employer contribution | Not compulsory (employer choice) | 3.5% (rising to 4% by 2028) |
| Government contribution | NO (removed for under-18s from 1 July 2025) | Up to $260.72/year if contribute $1,042.86+ |
| Your default contribution | 3.5% (rising to 4% by 2028) | 3.5% (rising to 4% by 2028) |
For most under-18s the KiwiSaver maths isn't compelling on its own: no government contribution, employer contribution not guaranteed. BUT joining early builds the habit. Every dollar locked in from 16 has about 49 years to compound. Even modest teen contributions can be worth $10,000+ by retirement if left alone.
Also, joining early means you can buy your first home slightly sooner (you must be a member for at least 3 years to withdraw for a first home).
Every dollar you earn from wages is also subject to the ACC Earners' Levy, currently 1.75% (changes yearly). This isn't tax, it's an insurance premium paying for ACC cover if you're injured. It comes off your pay automatically alongside PAYE. You don't need to do anything; it's not optional, and you can't claim it back.
If you're at university or polytechnic and have a student loan, you add "SL" to your tax code (e.g. "M SL"). This triggers automatic student loan repayments of 12% of your income over the repayment threshold (currently around $24,128/year from salaried income). Most teens earning under $24K/year don't repay from their main job. If you DO earn over the threshold, you're legally required to make these repayments; don't try to hide it.
Your payslip is the document (or app screen) showing exactly what you earned and what came out. Every NZ employer must give you one with every pay. Reading it carefully from day one catches mistakes early and builds understanding.
Let's walk through a real example: 17-year-old Tai, working 20 hours/week at $20/hour, tax code M, no student loan, KiwiSaver not joined.
Every line matters:
Every NZ employee earns holiday pay equivalent to 4 weeks per year (approximately 8% of total earnings). You get it one of two ways:
PAYG holiday pay should be shown as a separate line on your payslip. If you don't see it, ask: either you should be getting it each pay, or you should be accruing leave days. One or the other.
NZ has 11 public holidays (New Year's Day, Waitangi, Good Friday, Easter Monday, ANZAC, King's Birthday, Matariki, Labour Day, Christmas, Boxing Day, and your regional Anniversary Day). If you work on one, you're entitled to:
This is a legal minimum; employers can pay more but not less. Check the holiday dates list each year (see MBIE's employment.govt.nz).
If something looks wrong, ask payroll politely first. Most issues are honest mistakes. If unresolved, contact Employment NZ (MBIE) who investigate free for employees.
Profile: Nikau, 16, first 3 months at a supermarket. 12 hours/week at $18.80 (Starting-Out), tax code M, not in KiwiSaver.
Same teen after 6 months. Must move to adult minimum at month 7.
If your employer doesn't automatically shift you to the adult rate at month 7, raise it with them and back-claim any underpayment. This is a real and common issue.
Two teens on $15,000/year each from age 16 to 65, contributing 3.5%. Same return (5% p.a. net after fees).
The gap is smaller than you'd think because the $1,050 extra contribution compounds for 49 years. This example assumes NO employer match (worst case for under-18s). With a 3.5% employer match from 18 onwards, the total balance would be much bigger but the two-year gap stays proportionally similar.
Worked at a cafe (M code) AND at a pool as a lifeguard (also M code).
Lesson: Two M codes let Kaia use TWO 10.5% brackets instead of one. IRD caught it in the year-end automatic calc and sent a bill. Correct set-up: M on the higher-paying cafe, S (secondary, $15.6K-$53.5K bracket) on the pool. Had Kaia done this, about $17.5% would have been deducted from the pool earnings at source, matching the real tax owed.
Started at a retail chain on a "90-day trial". Let go at day 89 without reason.
Lessons: (1) Check whether the 90-day trial is actually legal at your workplace. (2) If you're dismissed unfairly, MBIE mediation is FREE. (3) Don't assume "the boss can fire me anytime"; NZ employment law is strong and on your side if you know the rules.
Did two "trial shifts" at a cafe. Neither was paid. Was told she wasn't needed.
Emma phoned Employment NZ's free helpline. They contacted the cafe. Emma received $376 (two shifts × 8 hours × minimum wage + 8% holiday pay) within 3 weeks.
Lesson: Unpaid trial shifts are usually illegal in NZ. If someone's working hours producing output for the business, they're an employee. If you're asked to do a trial "for free", insist on being paid or walk away.
Worked Boxing Day at a ski resort cafe. Paid flat rate $18.80/hour.
Leo raised it with payroll. Honest mistake by a small cafe. Received the correction in next pay. Kept the day in lieu and used it in off-season.
Lesson: Public holiday entitlements aren't always applied automatically. Check your payslip after any public holiday worked. If time and a half or a lieu day is missing, ask politely. Most employers fix it when prompted.
Quiz on First Jobs and Payslips in NZ
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