Final Pay Calculator
Estimate your final pay when leaving a job in NZ. Covers unused annual leave, alternative leave, lieu days, public holidays earned, and notice periods.
About this calculator
This calculator implements final pay calculations from Employment New Zealand. Last consulted 2 April 2026. Verify the figures yourself by following the link.
Current NZ final pay rules
Holidays Act 2003 + ERA 2000- •Pro-rata holiday pay: 8% of gross since last anniversary
- •Unused annual leave: All — at OWP or AWE (greater)
- •Alternative holiday days: Paid out at daily rate
- •Final wages: For days worked to last day
- •Notice period: Per contract (or reasonable if not stated)
- •Payment deadline: Next normal pay day
Source: Employment NZ — Final pay
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 NZ final pay is calculated when you leave a job
When you leave a job, your employer must pay out: unused annual leave, pro-rata 8% holiday pay, any owed alternative holidays, and your final wages.
- 1
Owed wages up to last day
Final_wages = hourly_rate × hours_worked_in_final_pay_period
Includes any owed overtime and allowances.
- 2
Unused annual leave payout
Annual_leave_pay = unused_days × daily_pay (greater of OWP/AWE)
Cannot be forfeited — Holidays Act requires full payout.
- 3
8% pro-rata holiday pay
Pro_rata = gross_earnings_since_last_anniversary × 8%
Covers leave accrued but not yet vested.
- 4
Alternative holidays (lieu days)
Alt_pay = unused_alt_days × daily_pay
Worked public holidays usually earn an alternative day — paid out if unused.
- 5
Apply PAYE & deductions
Net_final = sum - PAYE - ACC - KS - SL
All components are taxed as ordinary pay (not bonus).
Worked example
Inputs: Final week $1,200 + 12 days unused leave at $240/day + 6 weeks pro-rata 8% of $7,200
Result: $1,200 + $2,880 + $576 = $4,656 gross final pay.
Frequently Asked Questions
What should be in my final pay when I leave a job?
Is final pay taxed differently?
When must my employer pay my final pay?
When you leave a job in NZ (resignation, redundancy, or dismissal), your employer must pay you all owed wages, untaken annual leave, alternative holidays (lieu days), and proportionally accrued public holidays earned. The Holidays Act sets the minimum entitlements.
How this calculator works
Enter your salary, untaken annual leave days, alternative leave days, weeks since your last anniversary date, and any contractual notice owed. The calculator estimates the gross final pay then deducts PAYE, ACC, KiwiSaver, and student loan.
Final Pay Components (NZ)
| Wages owed | To last day worked |
| Annual leave (entitled) | At higher of average or ordinary weekly rate |
| Annual leave (accruing) | 8% of gross since last anniversary |
| Alternative leave | At ordinary weekly rate |
| Notice in lieu (if applicable) | Per employment agreement |
| Tax | PAYE on whole amount as extra pay |
Worked Examples
Employee on $80,000, 10 days untaken leave, 6 months since last anniversary, 2 weeks notice paid out
Approx gross final pay: $7,769; net ~$5,580
- Daily rate: $80,000 / 52 / 5 = $307.69
- Untaken leave: 10 × $307.69 = $3,077
- Accrued (8% of 6 months gross): $40,000 × 8% = $3,200
- Notice in lieu: 2 × $1,538 = $3,077
- Gross final pay: ~$9,354
- PAYE/ACC/KS deducted as extra pay: ~$2,800
Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.
Last reviewed: