Should I stay for a redundancy payout or take a new job?

It depends on the size of the after-tax payout against the pay you would earn by starting a new role sooner. If the new job pays more and starts soon, moving on can beat waiting; if the payout is large, staying may win.

Is a redundancy payment taxed?

Yes, a redundancy payment is taxed as income in New Zealand, so it is the after-tax payout that counts. This calculator lets you compare the net payout with the net pay from a new role over the same period.

What else should I weigh up?

Beyond the money, consider job security, the new role's prospects, how long a search might take, and your own wellbeing. The numbers are one input into a decision that is also about timing and risk.

Redundancy vs New Job Calculator

This calculator compares staying for a redundancy payout against starting a new role sooner. The choice hinges on the after-tax payout you would forgo against the pay you would earn by moving on early. You enter the payout, your current and new pay, and how many weeks earlier you could start, and the tool shows which path leaves you better off over the period, so the money side of the decision is clear.

Redundancy payout (gross)

Current salary

New job salary

Start new role this many weeks sooner

comparing the after-tax payout with extra pay from starting sooner

After-tax payout$0

Extra net pay over the weeks$0

Both figures are after tax on the 2025/2026 brackets. The payout is taxed on top of your income. This is a money comparison only; weigh job security, prospects and wellbeing too. Estimate only, not financial advice.

How it works

The calculator taxes the redundancy payout on top of your current income to find the net payout you would receive by staying. It then works out the net pay you would earn in the new role over the weeks you could start sooner, less the net pay you would have earned staying put. Comparing the after-tax payout with that extra net pay shows which choice leaves you better off over the period.

Worked example

A $20,000 payout taxed on top of $75,000 nets roughly $13,400. Starting a $85,000 role 12 weeks sooner, instead of the $75,000 role, earns a small amount of extra pay, so the larger payout wins on money alone here, though a much higher new salary or longer head start could tip it the other way.

Related calculators

Lump Sum Redundancy Tax Calculator: payout tax.
Back Pay Tax Calculator: tax on a lump sum.
Salary Calculator: take-home pay.
Emergency Fund Months Calculator: your runway.

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