Annual Leave Cash-Up Calculator
Calculate the value of cashing up annual leave in NZ — workers can cash up to 1 week/year if their employer agrees. Includes PAYE on the payout.
About this calculator
This calculator implements annual leave cash-up rules (1 week max) from Employment New Zealand. Last consulted 2 April 2026. Verify the figures yourself by following the link.
Current NZ annual leave cash-up rules
Holidays Act 2003 — current as of 2026- •Maximum cash-up per year: 1 week (5 days)
- •Mandatory leave to keep: Minimum 3 weeks per year
- •Pay rate: Greater of OWP or AWE
- •Requires employer agreement: Yes — in writing
- •Tax treatment: Ordinary pay (PAYE, ACC, KS apply)
Source: Employment NZ — Cash up
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
How annual leave cash-up is calculated
You can cash up up to 1 week of annual leave per year (with employer agreement) under the Holidays Act 2003. Cash-up is paid at the same rate as leave taken.
- 1
Determine eligible amount
Max_cash_up = 1 week of annual leave entitlement per anniversary year
Cannot cash up your statutory 4-week minimum — only the excess accrued.
- 2
Calculate pay rate (greater of OWP / AWE)
Cash_up_rate = max(Ordinary_Weekly_Pay, Avg_Weekly_Earnings_52_wk)
Same calculation as taking leave — protects high-earning weeks.
- 3
Apply PAYE & deductions
Net = gross × (1 − PAYE_rate − ACC − KS − SL_if_applicable)
Cash-up is taxed exactly like regular pay — no special bonus-tax treatment.
Worked example
Inputs: $1,400 weekly pay, 1 week cashed up, 33% bracket
Result: Gross $1,400. PAYE ~$462. ACC ~$25. Net ~$913.
Frequently Asked Questions
How much annual leave can I cash up in NZ?
Is cashed-up annual leave taxed?
Can my employer refuse my request to cash up?
Under the NZ Holidays Act, employees can request to cash up to one week of their annual leave each year, provided their employer agrees. The cash-up is paid as ordinary weekly pay and is subject to PAYE and ACC.
How this calculator works
Enter your gross annual salary and the number of days you want to cash up. The calculator works out the daily rate (annual / 52 / 5), multiplies by the days requested, then deducts PAYE, ACC, KiwiSaver, and student loan.
Annual Leave Cash-Up Rules
| Maximum cashable per year | 1 week (5 working days) |
| Employer must agree | Yes — in writing |
| Tax treatment | Ordinary pay (PAYE + ACC + KS/SL) |
| Minimum holiday remaining | 3 weeks accrued |
| Restrictions | No coercion; employee request only |
Worked Examples
Employee on $70,000 salary cashes up 5 days
Approx net cash-up: $945 (gross $1,346)
- Daily rate: $70,000 / 52 / 5 = $269.23
- Gross cash-up: $269.23 × 5 = $1,346
- PAYE at 30% bracket: ~$404
- ACC: $24
- KiwiSaver 3.5%: $47
- Net: ~$871
Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.
Last reviewed: