Free Final Pay Calculator for New Zealanders
When you leave a NZ job, final pay combines outstanding salary, unused annual leave, alternative-day balances, and any contractually-owed amounts. The calculator combines them and applies a tax estimate.
Your final pay
Based on $2,500 outstanding, 3 weeks leave, 0 alt days.
About our Final Pay Calculator
NZ final pay covers four components: outstanding regular pay up to the last day worked, accrued annual leave at the higher of OWP or AWE, pro-rated holiday pay since the last anniversary, and any unused day-in-lieu balances. Sick leave and bereavement leave do not pay out.
How to use it
Enter your salary, days of regular pay outstanding, weeks of accrued annual leave, and day-in-lieu balance. The calculator returns gross final pay, an estimated PAYE deduction, and the net figure.
Why use it
For verifying the final-pay figure from your employer’s payroll, especially when accrued leave is substantial. The lump-sum tax method can produce surprisingly high PAYE on a final-pay leave payout; running the figures ahead of time helps avoid surprises.
The maths behind it
Final pay = Outstanding salary + Accrued leave (OWP/AWE) + 8% holiday pay since last anniversary + Day-in-lieu balance Final pay combines several components. Outstanding regular salary up to the last day worked. Accrued annual leave at the higher of OWP or AWE. Pro-rated holiday pay (8%) on gross earnings since the last work anniversary. Any unused day-in-lieu balances at ordinary daily pay. PAYE applies via the lump-sum extra-pay method when the final pay includes substantial leave; ordinary PAYE applies on the regular-salary component.
Worked example
Reggie, marketing coordinator in Stratford, finishing a $72,000 role with 9 days unused leave and 4 days outstanding pay.
Reggie’s OWP: $72,000 ÷ 52 = $1,385/week. Daily: $277/day. Final pay components on his last day: 4 days regular pay ($1,108), 9 days accrued leave ($2,492), 8% holiday pay on the $5,500 he earned since his last anniversary ($440).
Gross final pay: $1,108 + $2,492 + $440 = $4,040.
PAYE on the lump sum (annualised at $72,000 sits in the 30% bracket): around $1,170. ACC: $71. KiwiSaver at 3.5%: $141. Net final pay reaching his bank: about $2,658.
Things to keep in mind
- Accrued leave at OWP/AWE. Annual leave already vested (after 12 months service) is paid at the higher of OWP or AWE. For workers with bonuses or commission in the past year, AWE often produces a meaningfully higher figure than OWP.
- Pro-rated 8% on partial year. Holiday pay accruing toward the next anniversary (8% of gross earnings since the last anniversary) is also paid out, separately from any vested leave.
- Day-in-lieu balances pay out. Unused alternative-day balances (from working public holidays) pay out as part of final pay at ordinary daily pay. Sick leave and bereavement leave do not.
- Lump-sum PAYE method. When final pay includes substantial leave or a redundancy lump, PAYE uses the lump-sum extra-payLump-sum taxOne-off PAYE on a bonus, redundancy, or back-pay, calculated as if added to ordinary income.View in glossary → method, which can produce higher PAYE than ordinary in-the-pay-run rates.
NZ-specific notes
FAQs
When does final pay arrive?
In the next regular pay run after the termination date. Most employers process final pay within 1-2 pay periods of the last day. Holding pay back is generally unlawful.
Is sick leave paid out?
No. Accrued sick leave does not pay out at termination. Only annual leave, day-in-lieu balances, and any contractually-owed amounts are included in final pay.
How is the lump-sum tax method applied?
When final pay includes a large accrued-leave or redundancy lump, payroll uses the lump-sum extra-pay method: annualise the recent regular pay, add the lump, identify the bracket, apply the rate to the lump only.
What if I owe money to the employer?
Most NZ employment agreements allow some deductions from final pay (training course costs, equipment not returned, advance pay), but only with the employee’s written consent. Unilateral deductions outside agreed terms are not lawful.
References & sources
- Employment NZ, "Final pay". employment.govt.nz
- Employment NZ, "Ending employment". employment.govt.nz
- Inland Revenue, "Extra pays and lump sums". ird.govt.nz
- Inland Revenue, "KiwiSaver for employees". ird.govt.nz