Employment ending
Final Pay Calculator NZ: Estimate Final Wages, Holiday Pay & Lump-Sum Tax
Estimate the main components that can make up a New Zealand employee's final pay. The calculator keeps ordinary final wages separate from end-of-employment holiday and lump-sum payments so you can see how the estimate is built.
Reviewed 16 August 2026 · Uses current Holidays Act guidance and IRD 2026/27 lump-sum PAYE rates where selected
What does final pay include in New Zealand?
Final pay can include wages owed up to the end of employment, holiday pay the employee is entitled to, and other payments owing. The exact result depends on the employee's leave history, employment agreement, work pattern and payroll circumstances, so this tool is an estimate rather than a legal or payroll determination.
Your final pay details
Check that all amounts are zero or greater and that the required holiday-pay fields are completed.
Estimated final pay breakdown
| Final ordinary wages | $0.00 |
|---|---|
| Unused annual-holiday entitlement | $0.00 |
| 8% annual-holiday payment | $0.00 |
| Alternative holidays | $0.00 |
| Public-holiday payment entered | $0.00 |
| Other gross-earnings payment | $0.00 |
| Redundancy / retiring allowance | $0.00 |
Optional end-of-employment lump-sum PAYE estimate
This section applies Inland Revenue's method for an end-of-employment lump-sum payment made on or after 1 April 2025. It does not calculate PAYE on the final ordinary wages above and it does not estimate KiwiSaver, student loan, child support or other deductions.
The IRD method is not calculated here for NSW, ND or tailored tax codes. Use the employee's usual applicable rate or payroll/IRD guidance.
How the final pay calculation works
If annual holidays entitlement is owing
The calculator pays the unused entitlement at the higher of the ordinary weekly pay (OWP) or average weekly earnings (AWE) that you enter. It then calculates an additional 8% of gross earnings since the last anniversary date, including the final-pay components that form part of gross earnings, less holiday pay already paid in advance or on a pay-as-you-go basis.
If annual holidays entitlement is not owing
The calculator uses 8% of gross earnings since employment started, including applicable final-pay additions, less annual holiday amounts already paid in advance or on a pay-as-you-go basis. Only use this mode when that is the correct Holidays Act method for the employee.
Alternative holidays and public holidays
Alternative holidays are paid at relevant daily pay or average daily pay when applicable. A public holiday can sometimes fall within the period created by treating unused annual holidays as taken immediately after employment ends. Because that depends on the employee's normal working days and calendar dates, this calculator does not guess whether a public holiday qualifies; enter a payment only after that entitlement has been established.
Official employment sources: Employment New Zealand — Final pay and Calculating holiday and leave pay.
How the optional final-pay tax estimate works
IRD's end-of-employment lump-sum method starts with the total paid in the employee's last two pay periods, annualises it using the normal pay frequency, adds the threshold for a secondary tax code where applicable, and then adds the lump-sum payment to select a single PAYE rate. For 2026/27 the published rates include the 1.75% ACC earners' levy where applicable, with a separate rate for redundancy payments and retiring allowances that do not have ACC.
This page intentionally keeps the tax estimate narrow. It does not try to turn final wages into an ordinary-pay PAYE calculation, and it does not guess student-loan, KiwiSaver, child-support or tailored-code deductions.
Official tax source: Inland Revenue — Calculate PAYE for a lump sum payment at end of employment.
Example: final pay after resignation
Suppose an employee is owed $1,600 of final wages, has 2 weeks of unused annual-holiday entitlement, OWP of $1,400 and AWE of $1,350, and has earned $8,400 since their last anniversary. The unused entitlement is estimated at $2,800 because OWP is higher. The 8% calculation then uses the applicable gross-earnings base, including the final-pay amounts that count as gross earnings. Any alternative-holiday, public-holiday or other payment entered is shown separately so the employee can reconcile the estimate with payroll.
Final Pay Calculator NZ FAQs
How is final pay calculated in New Zealand?
Final pay generally combines wages still owing, holiday pay the employee is entitled to, and any other payments owing. Annual-holiday treatment differs depending on whether annual holidays entitlement is owing, and some payments require RDP, ADP or agreement-specific information.
Does final pay include holiday pay after resignation?
Yes, holiday pay that is owed must be included when employment ends. Depending on the employee's situation this can include unused annual-holiday entitlement and/or an 8% annual-holiday payment.
Is termination pay the same as final pay?
People often use the terms together, but this page is designed around the employee's final payment when employment ends. It can include final wages, holiday pay and other amounts owing rather than only a termination or redundancy payment.
Does this calculate final pay tax?
It can estimate PAYE on selected end-of-employment lump-sum amounts using IRD's published method. It deliberately does not calculate normal PAYE on the final ordinary wages or other deductions, so the result labelled after lump-sum PAYE is not net take-home final pay.
Why do I enter OWP and AWE?
When unused annual-holiday entitlement is paid out, Employment New Zealand says it is paid at the higher of ordinary weekly pay or average weekly earnings. Calculating OWP or AWE can itself depend on payroll history, so this tool asks you to enter the figures rather than invent them.
Does unused sick leave get paid out?
There is no general legal entitlement for unused sick or bereavement leave to be paid out when employment ends. An employment agreement may require it or an employer may choose to pay it. If an amount is contractually owing, include it only after confirming how payroll treats it.
Does this calculator provide employment-law advice?
No. It is a transparent planning estimate based on the figures you enter and the cited official guidance. Final pay can be fact-specific, and employers remain responsible for applying the Holidays Act, the employment agreement and tax rules correctly.