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Starting work for the first time

A first payslip, an IRD number, a first bank account, and the scams that go after people who have just started earning.

24 situations worked through, 16 of them with the sums shown. Each one links to the guide that sets out the rules behind it, and that guide is where any rate or threshold is kept current.

The people in these situations are illustrations written to show how the rules land on somebody, not real customers and not case histories. The arithmetic is real and the rules are real; the names and the circumstances are made up to teach.

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First Job and Payslip Guide NZ

Kaia, 17, Auckland

Worked at a cafe (M code) AND at a pool as a lifeguard (also M code).

  1. Cafe income: $22,000
  2. Pool income: $8,500
  3. Total: $30,500
  4. Correct PAYE owed: about $4,019 (10.5% on first $15,600 plus 17.5% on $14,900)
  5. PAYE actually withheld (two M codes): about $3,203 (10.5% on each job's first $15,600)
  6. Shortfall at year-end: $816 owing to IRD

The same calculation on its own, with others like it

Josh, 18, Wellington

Started at a retail chain on a "90-day trial". Let go at day 89 without reason.

This one turns on the rules rather than on a calculation, so there are no sums to show.

Emma, 16, Tauranga

Did two "trial shifts" at a cafe. Neither was paid. Was told she wasn't needed.

This one turns on the rules rather than on a calculation, so there are no sums to show.

Leo, 17, Queenstown

Worked Boxing Day at a ski resort cafe. Paid flat rate $19.16/hour.

  1. What he was paid: 8 × $19.16 = $153.28
  2. What he should have got: 8 × $28.74 (1.5x) = $229.92
  3. PLUS a day in lieu (8 hours × $19.16 = $153.28)
  4. Correct total: $383.20
  5. Shortfall: $229.92

The same calculation on its own, with others like it

Getting an IRD Number in New Zealand

Aroha - school leaver starting her first job

Aroha is 17, born in Auckland, and has just been offered a part-time job at a supermarket. She has never needed an IRD number before.

  1. She applies online in myIR using the New Zealand resident route.
  2. Primary document: her full New Zealand birth certificate. Secondary document: her new learner driver licence.
  3. She takes both originals to an AA Centre within 20 days to verify her identity.

Her IRD number arrives within 10 working days, in time to give her employer before her first payday.

The same calculation on its own, with others like it

The Patel family - registering baby Diya

Priya and Raj have just had a baby, Diya, born in Wellington. They want her IRD number sorted so they can apply for Best Start and open a savings account for her.

  1. Within 2 months of the birth they register Diya online through SmartStart.
  2. In the same SmartStart process they tick the option to apply for Diya's IRD number.
  3. Registration and the IRD number application are both free. They pay only for a printed birth certificate.

Diya has her own IRD number, and Best Start can be paid against it.

💡 One less form later

Because the Patels applied for Best Start, Inland Revenue would have issued Diya an IRD number through that process anyway. Doing it at birth registration simply gets it done in a single visit to the SmartStart website.

The same calculation on its own, with others like it

Sofia - new migrant on a work visa

Sofia has moved from Spain to Christchurch on a work visa to start a hospitality job. She has just arrived and needs an IRD number quickly.

  1. She applies online through myIR using the new arrival route (there is no paper form for this).
  2. She enters her passport details, her Immigration New Zealand application number, and her most recent Spanish tax number.
  3. Inland Revenue checks her identity with Immigration New Zealand.

Her IRD number arrives by email within 2 days, or by post within 10 days.

⚠️ Apply before your visa arrival date

Visa holders should apply by the final arrival date shown on their visa. Sofia applies as soon as she lands so she can give the number to her employer and open a local bank account without delay.

The same calculation on its own, with others like it

Tom - a New Zealander living in London

Tom has inherited a share of a New Zealand rental property and needs an IRD number to deal with the tax on his share, but he lives in London and has no plans to move back soon.

  1. As an offshore person he completes the paper form IR742.
  2. He gathers his passport, proof of his London address, his UK tax identification number, and evidence of why he needs the number.
  3. He proves a fully functional New Zealand bank account using a statement showing his name, account number, and a deposit and a withdrawal of different amounts.
  4. He emails the form and scanned documents to offshore@ird.govt.nz.

Inland Revenue aims to process it within 20 days.

💡 No bank account yet?

If Tom could not show a fully functional New Zealand bank account, he could instead submit a completed customer due diligence form IR997 done by a New Zealand reporting entity. Either the bank account proof or the IR997 satisfies the requirement.

The same calculation on its own, with others like it

Pocket Money Guide NZ

The Williams Family, Dunedin

Three kids aged 8, 10 and 13 with a printed chore menu on the fridge.

  1. Set/clear table (per meal): $0.50
  2. Load/unload dishwasher: $1.00 each
  3. Vacuum lounge: $3.00
  4. Mow lawn: $8.00
  5. Wash car: $6.00
  6. Walk dog: $2.00 per walk

The same calculation on its own, with others like it

Liam, 15, First Job at a Bakery

12 hours × $18/hour = $216 "in my pocket". Planned to buy $180 sneakers in first week.

  1. Gross pay: $216.00
  2. PAYE (10.5%): -$22.68
  3. ACC Earners' Levy (1.75%): -$3.78
  4. Net pay: $189.54

The same calculation on its own, with others like it

Sienna, 17, Hamilton

Two part-time jobs, used M tax code on both.

  1. Main job: Supermarket $22,880/year
  2. Second job: Cafe $6,240/year
  3. Total: $29,120 (partly in 17.5% bracket)
  4. Should owe: about $3,744 PAYE
  5. Actually paid: about $3,056
  6. Year-end shortfall: $688 owing to IRD

The same calculation on its own, with others like it

The Chen Family, Wellington

Two kids aged 9 and 11 who blew their pocket money every week on sweets.

This one turns on the rules rather than on a calculation, so there are no sums to show.

Scams Targeting Young New Zealanders

Blake, 19, Dunedin

Saw a TikTok video featuring "Dame Lisa Carrington" recommending a crypto platform. It was a deepfake.

This one turns on the rules rather than on a calculation, so there are no sums to show.

Jess, 20, Hamilton

Answered a Facebook ad: "Earn $400/week helping process payments. Just receive and forward."

This one turns on the rules rather than on a calculation, so there are no sums to show.

Mia, 17, Christchurch

Applied for a "data entry from home, $28/hour" role on SEEK.

This one turns on the rules rather than on a calculation, so there are no sums to show.

Caleb, 16, Whangārei

Got a text: "ANZ: unusual login from Russia. Verify now: anzsecure.co/v7".

This one turns on the rules rather than on a calculation, so there are no sums to show.

Teen Bank Accounts NZ

Hannah, 14, Christchurch

Opened a BNZ YouMoney with custom buckets at age 13.

  1. Saved $600 for phone over 14 months
  2. Saved $400 for school trip over 9 months
  3. Still had Everyday money for weekly life

The same calculation on its own, with others like it

Marcus, 16, Wellington

Opened a savings account but didn't give his IRD number. Saved $3,000 over two years.

  1. Interest earned (average balance ~$1,500 at 3%): about $45/year
  2. RWT applied (no IRD number = 45%): -$20.25/year
  3. Should have been (10.5%): -$4.73/year
  4. Overpaid tax over 2 years: about $31

The same calculation on its own, with others like it

Riley, 15, Auckland

Received a text: "NZ Post: parcel held at depot. $3.50 clearance fee: nzpost-pay.co/r7k".

This one turns on the rules rather than on a calculation, so there are no sums to show.

The Rahman Family, Hamilton

Opened an ASB joint savings account for their daughter Aaliyah at age 6. Graduated her to full ownership at 16.

  1. Age 6: $50 birthday gift opens the account
  2. Ages 6-12: Parents added $20/month, relatives contributed on birthdays
  3. Age 12-16: Aaliyah added her own pocket money
  4. Age 16: Balance of $4,800, account transferred to sole ownership
  5. Aaliyah also got a Visa debit, joined ASB Headstart, gave IRD number

The same calculation on its own, with others like it

Youth and Starting-Out Wages

Mia, 16, first job at the starting-out rate

Mia is 16 and has just started her first job at a cafe, working 15 hours a week during the school term. She is new to the employer, so she qualifies for the starting-out wage.

  1. Rate: starting-out wage = $19.16 an hour
  2. Hours: 15 a week
  3. Weekly gross: 15 times $19.16 = $287.40

Mia earns $287.40 gross a week

💡 The clock is running

Mia can be paid the starting-out rate only until she completes six continuous months with this cafe. After that she must move to the adult rate, even though she will still be 16.

The same calculation on its own, with others like it

Liam, 16, crosses the six-month line

Liam is 16 and works 30 hours a week at a hardware store. He has just completed six continuous months with the same employer, so he must move from the starting-out rate to the adult minimum wage.

  1. Before six months, starting-out rate: 30 times $19.16 = $574.80 a week
  2. After six months, adult rate: 30 times $23.95 = $718.50 a week
  3. Weekly pay rise: $718.50 minus $574.80 = $143.70

Over a year that is about $143.70 times 52 = $7,472.40 more in gross pay

⚠️ Watch the pay run after six months

The move to the adult rate is not automatic in some payroll systems. If Liam is still being paid $19.16 an hour after his six-month mark, that is an underpayment he can recover. He should check his payslip around that date.

The same calculation on its own, with others like it

Aroha, 20, apprentice on the training wage

Aroha is 20 and is a first-year building apprentice. Her employment agreement requires her to complete at least 60 credits a year of a recognised industry training programme, so she qualifies for the training minimum wage. She works 40 hours a week.

  1. Rate: training wage = $19.16 an hour
  2. Hours: 40 a week
  3. Weekly gross: 40 times $19.16 = $766.40
  4. Adult-rate comparison: 40 times $23.95 = $958.00

The training rate costs Aroha $958.00 minus $766.40 = $191.60 a week while she trains

💡 The training must be in the agreement

If Aroha's agreement did not require the 60 credits a year of recognised training, she would be entitled to the adult minimum wage of $23.95 an hour instead. The training rate depends on the training being genuine and written into her agreement.

The same calculation on its own, with others like it

Sophie, 18, coming off a benefit

Sophie is 18 and was paid Jobseeker Support for eight months before landing a 32-hour-a-week job. Because she was on a specified benefit for six months or more and has not yet done six months of continuous work, she qualifies for the starting-out wage.

  1. Rate: starting-out wage = $19.16 an hour
  2. Hours: 32 a week
  3. Weekly gross: 32 times $19.16 = $613.12

Sophie earns $613.12 gross a week on the starting-out rate

The same calculation on its own, with others like it

Other situations
Saving and investing   Running a business   Buying a first home   Running a household   Debt you cannot pay   Scams, faulty goods and your rights   Changing or losing a job   Separation, death and estates   Understanding your pay and tax   Owning a rental or holiday home  
Every situation

Situations are taken from the guides listed above and are worked examples for education, not advice. Figures used in an example were current when the guide was written; the guide holds the maintained figure. Last reviewed 2026-09-07. See also the arithmetic on its own, every question the site answers and the guides.