First Job and Payslip Guide NZ - Young Workers Guide
👷 Your First Job and First Payslip - A Young Worker's Guide
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.
What You Need Before Your First Day
- An IRD number. Apply via IRD's website (free, 8 to 10 working days). You can't be paid with PAYE without one, or your tax rate defaults to a punishing 45%.
- A bank account. Any NZ bank. Wages are paid by direct deposit; nobody pays in cash anymore.
- Photo ID. Passport, 18+ card, or driver's licence. Your employer needs to verify your right to work.
- Your employment agreement. By law EVERY employee in NZ must get a written employment agreement BEFORE they start. Read it. Ask about anything unclear. Never start without one.
- A KiwiSaver decision. Under-18s aren't auto-enrolled but can opt IN. 18 and over are automatically enrolled but can opt OUT within the first 8 weeks.
Minimum Wage Rates from 1 April 2026
| Type | Rate (April 2026, per hour) | Who Qualifies |
|---|---|---|
| Adult minimum wage | ~$23.95 | 16+ (most workers, once starting-out period ends) |
| Starting-Out wage | ~$19.16 (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 | ~$19.16 (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.
Key Rights Young Workers Have
- Written employment agreement before you start (legally required)
- At least minimum wage for every hour worked (including trial shifts - trials have to be paid!)
- Paid breaks: two 10-minute paid rest breaks and one 30-minute unpaid meal break for a typical 8-hour shift
- 4 weeks paid annual leave after 12 months of continuous service (or 8% pay-as-you-go as holiday pay)
- 11 public holidays with paid time-and-a-half plus a day in lieu if worked
- 5 days sick leave per year after 6 months
- 3 days paid bereavement leave for close family
- Health and safety: employers MUST provide a safe workplace
- No 90-day trial? Only businesses with fewer than 20 employees can use the 90-day trial. Larger employers cannot fire you without cause.
📋 Tax Codes, KiwiSaver and the IR330 Form
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).
Common Tax Codes for Young Workers
| 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: Should a Teen Join?
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).
ACC Earners' Levy
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.
Student Loan
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.
🧾 Reading Your Payslip Line by Line
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.
A Typical Payslip Walkthrough
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:
- Gross pay = hours × rate. Hourly jobs; salary earners get a fixed amount (annual salary ÷ pay periods).
- Holiday pay (8%): If you're on a casual or fixed-term contract, this is usually paid each pay run. For permanent staff, it accumulates as 4 weeks of leave.
- PAYE (income tax): Your tax on this pay, calculated by IRD's formula, slightly pro-rated.
- ACC Earners' Levy (1.75%): Funds ACC accident insurance.
- KiwiSaver employee contribution (if joined): 3.5% of gross usually.
- KiwiSaver employer contribution (if applicable): 3.5% of gross. Not subtracted from your pay; it's added to your KiwiSaver balance separately.
- Student loan repayment (if applicable): 12% of income over threshold.
- Net pay: What actually lands in your bank.
- YTD (year-to-date): Running totals since the start of the tax year (1 April).
- Leave balances: Annual leave days owed (if permanent), sick leave balance.
Holiday Pay: Accumulated vs Pay-As-You-Go
Every NZ employee earns holiday pay equivalent to 4 weeks per year (approximately 8% of total earnings). You get it one of two ways:
- Accumulated: For permanent staff. You accrue leave days and get paid when you take them. You keep the lump sum of unused leave if you leave the job.
- Pay-as-you-go (PAYG): For casual workers, fixed-term contracts under 12 months, and some part-time teens. The 8% is added to every pay instead of banking up. You get the money now but don't get paid leave later.
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.
Public Holidays, Time and a Half, Alternative Days
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:
- Time and a half for every hour worked
- Plus a day in lieu if the public holiday falls on a day you would normally have worked
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).
Common Payslip Problems to Spot
- Wrong tax code: Check it matches the IR330 you filled in
- Less than minimum wage: Divide gross pay by hours; should be at least the relevant minimum
- Hours missing: Keep your own record (diary or phone note) of every shift
- No holiday pay showing: Should either be banked or paid as 8% extra
- Unauthorised deductions: Employers can only deduct for things you've agreed to in writing
- KiwiSaver mismatch: Check the % being taken matches what you chose
If something looks wrong, ask payroll politely first. Most issues are honest mistakes. If unresolved, contact Employment NZ (MBIE) who investigate free for employees.
🔢 Worked Examples and Real-World Stories
Example 1: 16-year-old on Starting-Out Wage
Profile: Nikau, 16, first 3 months at a supermarket. 12 hours/week at $19.16 (Starting-Out), tax code M, not in KiwiSaver.
Example 2: Adult vs Starting-Out Rate Difference
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.
Example 3: KiwiSaver Join at 16 vs at 18
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.
Real-World Story: The Two-Jobs Tax Shock
Worked at a cafe (M code) AND at a pool as a lifeguard (also M code).
What Happened:
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.
Real-World Story: The 90-Day Trial Misuse
Started at a retail chain on a "90-day trial". Let go at day 89 without reason.
The Twist:
- The employer had 35 staff across two stores
- 90-day trials are ONLY allowed for employers with FEWER than 20 employees
- Josh's contract was invalid
- He raised a personal grievance through MBIE Employment NZ
- Awarded 3 weeks' lost wages ($1,800) plus reinstatement option
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.
Real-World Story: The Unpaid Trial Shift
Did two "trial shifts" at a cafe. Neither was paid. Was told she wasn't needed.
The Problem:
- The cafe claimed trials were "unpaid interviews"
- Employment NZ rule: if you're doing actual work that benefits the employer, you must be paid
- A brief paid trial (1 shift) can be legal under proper conditions
- Two full shifts clearing tables and serving customers is work, not an interview
Emma phoned Employment NZ's free helpline. They contacted the cafe. Emma received $383.20 (two shifts × 8 hours × minimum wage) in unpaid wages within 3 weeks, with her 8% holiday pay added on top of that.
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.
Real-World Story: The Public Holiday Time-and-a-Half Win
Worked Boxing Day at a ski resort cafe. Paid flat rate $19.16/hour.
The Check:
- Leo worked 8 hours on Boxing Day (a public holiday)
- Boxing Day fell on a Thursday, which was Leo's normal work day
- Entitlements: time and a half PLUS day in lieu
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.
🎯 Test Your Knowledge
Quiz on First Jobs and Payslips in NZ
Related guides
- Understanding Your Payslip - New Zealand, a related guide in the same area.