Free Pay Rise Calculator for New Zealanders
A pay rise is taxed at your marginal rate, which is usually 30% or 33% in NZ. The take-home portion of the rise is therefore much smaller than the gross. The calculator shows exactly how much.
Your pay rise
Based on a current salary of $80,000 and a $5,000 gross pay rise.
About our Pay Rise Calculator
A $5,000 pay rise on a $86,000 salary lands as roughly $3,087 in the bank, after PAYE at 33%, ACC at 1.75%, and KiwiSaver at 3.5%. The keep-rate of 61.7% feels different from the headline 5%-of-salary number; the calculator surfaces the actual after-tax figure.
How to use it
Enter your current salary and the pay rise amount. The calculator returns the new gross, the change in PAYE/ACC/KS, and the actual after-tax difference reaching your bank account.
Why use it
For framing a salary negotiation in real-money terms. Knowing that a $5,000 rise lands at $3,087 helps with budget decisions (rent, savings, debt) and with the case for asking for a larger figure if the take-home gap matters.
The maths behind it
Net rise = (Old salary + Rise) net − Old salary net The calculator runs full PAYE and ACC on both the old and new salary, then subtracts the two to find the actual increase in take-home. The figure is usually 60-70% of the gross rise, because the rise is taxed at your marginal rate (commonly 30% or 33%) plus 1.75% ACC, and KiwiSaver if elected.
Worked example
Renee, project manager in Te Puke, considering a $5,000 pay rise from $86,000 to $91,000.
Renee currently earns $86,000. After PAYE ($16,500), ACC ($1,505), and 3.5% KiwiSaver ($3,010), her take-home is $64,985.
On $91,000: PAYE rises to $18,150 (the extra $5,000 is taxed at 33% across the slice from $86,000 to $91,000). ACC: $1,593. KiwiSaver: $3,185. Take-home: $68,072.
Net rise to her bank: $3,087 on a $5,000 gross. That is 61.7% of the gross — the rest is PAYE (33%), ACC (1.75%), and KS (3.5%). The figure feels different from the headline 5%-of-salary number, but the math is consistent.
Things to keep in mind
- Marginal rate matters. The pay rise is taxed at the bracket rate of where the rise lands. For someone moving from $52k to $57k, the rise spans 17.5% and 30% brackets and the keep-rate is higher than for someone in the 33% band.
- Bracket crossings produce uneven keep-rates. A $5,000 rise that takes income from $76,000 to $81,000 spans the $78,100 boundary; the first $2,100 is taxed at 30% and the remaining $2,900 at 33%. The blended marginal rate is between 30% and 33%, not exactly either.
- Student loan adds 12%. For SL-coded borrowers, the 12% student loan deduction also applies on the gross rise. Combined with PAYE and ACC, the effective marginal rate on a pay rise can be 45-50% for a 30%-bracket SL-coded worker.
- Working for Families abatement. Families receiving WFF lose 27.5 cents per dollar of family income above the abatement threshold. A pay rise pushing past the threshold can reduce WFF, increasing the effective marginal rate by another 27.5 percentage points.
NZ-specific notes
FAQs
Why does a pay rise feel smaller than the headline number?
Because the rise is taxed at your marginal rate (30% or 33% for most NZ earners), plus ACC, KiwiSaver, and possibly student loan. The take-home portion is usually 60-70% of the gross rise.
Should I negotiate gross or net?
Standard practice is to negotiate gross. The employer’s cost is the gross figure (plus their own KiwiSaver match and ESCT). Knowing the net helps you understand the impact on your bank account, but is not usually the negotiating figure.
Does a pay rise affect WFF?
Yes, if family income rises above the $44,900 abatement threshold. Each dollar of rise reduces WFF by 27.5 cents. For families near or above the threshold, this matters; for families well below or well above the WFF eligibility band, it does not.
How does a pay rise interact with KiwiSaver employer match?
The employer match is 3.5% of the new gross. A $5,000 rise also adds $175 of employer match (subject to ESCT) to your KiwiSaver fund, on top of whatever the calculator’s take-home figure shows.
References & sources
- Inland Revenue, "Tax rates for individuals". ird.govt.nz
- Accident Compensation (Earners’ Levy) Regulations 2025. legislation.govt.nz
- Inland Revenue, "Student loan repayment". ird.govt.nz
- Inland Revenue, "Working for Families". ird.govt.nz