Final pay calculator: what your last pay must include
Your final pay must include wages to your last day, any annual leave owed at the higher of ordinary weekly pay and average weekly earnings, public holidays that fall in that leave, alternative holidays owed, and 8% of what you have earned since your last work anniversary. It is due by the payday for your last pay period.
Worked out for the example. Change the boxes to make it yours.
| Wages for 40 hours to your last day | $1,346.15 |
|---|---|
| Annual leave owed, 7 days at $288.46 | $2,019.23 |
| Average weekly earnings (more than ordinary weekly pay of $1,346.15) | $1,442.31 a week |
| Public holidays in the leave period, 2 | $538.46 |
| Christmas Day | 25 Dec 2026 |
| Boxing Day (observed) | 28 Dec 2026 |
| Alternative holidays owed, 1 | $269.23 |
| 8% of $41,673.07 earned since your last anniversary | $3,333.85 |
| Final pay before tax | $7,506.92 |
| PAYE | -$2,252.07 |
| ACC earners' levy | -$131.37 |
| KiwiSaver at 3.5% | -$262.74 |
| Final pay after tax | $4,860.73 |
- Tax is the extra tax a year at your ordinary pay carries because of this pay. Your employer works out PAYE on holiday pay as a lump sum, so the amount withheld can differ a little and is squared up at the end of the tax year.
- Public holidays and alternative holidays are priced at $269.23 a day, your ordinary weekly pay divided by the days you work. Your employer uses relevant daily pay or average daily pay, which can be higher if your pay varies.
- Public holidays are worked out for national holidays only, not regional anniversary days.
- Unused sick leave and bereavement leave are not paid out unless your agreement says so.
Free while you are between jobs. Your account adds this final pay, after tax, to the savings in your money runway on Insights, after asking, and you can change any figure there.
What the law says your final pay includes
Under the Holidays Act 2003, leave you are already entitled to and have not taken is paid at the greater of your ordinary weekly pay on your last day and your average weekly earnings, which are your gross earnings for the last 12 months divided by 52 (s 24). On top of that you get 8% of your gross earnings since your last work anniversary, for the leave you were part way to earning, less any holiday pay already paid in advance (s 25). Those earnings include the rest of the final pay (s 26), so the calculator adds the wages and holiday payments into the 8%. If you leave within your first year, the whole holiday payment is 8% of everything you earned since you started (s 23).
Public holidays and alternative holidays
If you have untaken leave, imagine taking it straight after your last day. Any public holiday that falls in that period on a day you would have worked is paid as well, and it pushes the leave on by a day, which can catch another holiday (s 40). For a Monday to Friday job the calculator does this with the 2026 and 2027 national holidays, which is why the example, with 7 days owed and a last day of Friday 18 December 2026, picks up Christmas Day and the observed Boxing Day. Any alternative holiday you are owed is paid at your relevant daily pay or average daily pay for your last day (s 60).
When it is paid and how it is taxed
Holiday pay owed must be paid in the pay for your final pay period (s 27), which can fall after your last day. Inland Revenue usually treats holiday pay paid on leaving as a lump sum, so PAYE is worked out on it differently from a normal week, and KiwiSaver and any student loan are taken from it too. The after-tax figure here is the extra tax a year at your ordinary pay carries because of this pay. Unused sick leave is not paid out unless your agreement says so. Our glossary entry on final pay covers what to check on the payslip.
What changes from 6 August 2028
From 6 August 2028 the Employment Leave Act 2026 replaces the Holidays Act and leave is worked out differently, so this calculator applies to jobs that end before then. Our article on the Employment Leave Act changes explains what is coming.
Questions
What should be included in my final pay NZ?
Wages to your last day, annual leave you are owed and have not taken, public holidays that fall in that leave period on your working days, alternative holidays owed, and 8% of your gross earnings since your last work anniversary.
How is annual leave paid out when I leave?
At the greater of your ordinary weekly pay and your average weekly earnings over the last 12 months (Holidays Act 2003, s 24). If you have been there under a year, you get 8% of everything you earned instead (s 23).
When should I get my final pay?
Holiday pay owed must be paid in the pay for your final pay period (Holidays Act 2003, s 27), which can be after your last day. Wages and other money owed are usually paid at the same time.
Is unused sick leave paid out when you leave?
No. There is no legal right to have unused sick or bereavement leave paid out, unless your employment agreement says so.
Why is so much tax taken off my final holiday pay?
Inland Revenue usually treats holiday pay paid on leaving as a lump sum, and PAYE on a lump sum is worked out at a single rate from your recent pay plus the lump. Any difference is squared up at the end of the tax year.
What happens when I save this?
Your account adds the after-tax final pay to the savings in your money runway on Insights, after asking, so you can see how far it stretches. It is free while you are between jobs.
Sources
- Employment New Zealand: final pay.
- Holidays Act 2003, ss 5, 23 to 27, 40 and 60.
- Employment New Zealand: public holidays and anniversary dates.
- Inland Revenue: taxing holiday pay.
- Inland Revenue: lump sum payments.
- Employment New Zealand: how employees can get ready for the changes coming in 2028.
More free tools: see all the calculators.