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P.A.Y.E

Income tax withholding

Employees provide their tax code to their employer, which determines the appropriate tax rate.

The incremental tax rates increase as the salary increases.

The tax code considers various factors, such as family situation, student loans, and other specific circumstances.

Student Loan

Student loan repayments are made when a worker earns more than the repayment threshold.

The annual repayment threshold for the 2025 tax year is NZD $24,128.

Child Support

If you’re a liable parent (the parent responsible for child support payments), it is compulsory to pay child support through deductions from income.

The maximum amount of child support that can be deducted from an employee’s pay is 40% of a workers net earnings (after tax). This is known as protected net earnings.

KiwiSaver

Pension contribution

KiwiSaver is a voluntary scheme to help New Zealanders save for retirement.

Workers can choose to contribute a percentage of their pre-tax salary (options include 3%, 4%, 6%, 8%, or 10%).

Employers must contribute at least 3%.