What is a shift allowance?

A shift allowance is extra pay for working less sociable hours, such as nights, evenings or weekends. It can be a fixed amount per shift or a penal rate, such as time and a quarter or time and a half, on top of your base hourly rate.

How do penal rates work?

A penal rate multiplies your base hourly rate for certain hours, for example 1.25x or 1.5x for weekend or night work. The extra above your normal rate is the allowance you earn for working those hours.

Are shift allowances taxed?

Yes, shift allowances and penal rates are part of your taxable income and are taxed through PAYE like the rest of your wages.

Shift Allowance Calculator

This New Zealand calculator works out the value of shift allowances and penal rates on top of your base pay. Whether your extra is a fixed amount per shift or a penal multiplier such as time and a quarter for nights or weekends, this tool shows what those shifts add to your weekly and yearly earnings. It helps you see the true value of unsociable hours when weighing up a roster or a job.

Base hourly rate

Penal rate multiplier

Shift hours per week

Fixed allowance per shift

Shifts per week (for fixed allowance)

extra per week from shift allowances

Per year$0

Effective hourly on shift$0

Shows the extra above your base rate. Allowances and penal rates are taxable through PAYE, so the after-tax value is lower. Check your employment agreement for the exact rates. Estimate only.

How it works

The calculator takes the extra above your base rate from the penal multiplier on your shift hours, plus any fixed per-shift allowance across your shifts, to give the weekly extra and the yearly total. It also shows your effective hourly rate while on shift, so you can see what the unsociable hours are really worth before tax.

Worked example

On a $28 base rate, 20 hours a week at a 1.25x penal rate adds 0.25 x $28 x 20, about $140 a week or roughly $7,280 a year, lifting your effective shift rate to $35 an hour.

Related calculators

Overtime Pay Calculator: overtime hours.
On-Call Allowance Calculator: on-call pay.
PAYE Calculator: tax on your pay.
Hourly to Salary Calculator: convert pay.

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