Getting paid and tax
Getting paid the right amount of money and paying tax is important when you work in New Zealand. Learn about the different ways you might get paid, minimum wage and salary rules, and paying tax and tax rates when working on a student visa.
Ways you can get paid
There are many different ways of getting paid, depending on the kind of work you do:
- Wages are based on the time worked (normally paid by the hour). This is the most common way of getting paid. Jobs like waitressing or working as a salesperson in a shop will usually pay you hourly.
- Salary is normally a fixed amount per year. The amount you will get paid and the hours you will work should be set out in your employment agreement. The salary you earn must be at least equal to the minimum wage for each hour you work. A lot of office jobs pay you a salary.
- Commission is based on sales you’ve made or other targets that you’ve met. People who are paid this way may get commission only, or they might earn commission on top of an hourly wage. Whatever commission you earn must be at least equal to the minimum wage for each hour you work. People who sell in insurance make commission. Some sales people might get paid commission too.
- Piece rates are based on the number of pieces you’ve worked on (like the number of bins of fruit you've picked, or the number of clothes you've sewn). This has to be at least equal to the minimum wage for each hour you work.
Your employer will pay you by direct bank deposit, or in cash (New Zealand banknotes and coins). The way you’re paid will be written in your employment agreement. You can be paid weekly, fortnightly (every two weeks) or monthly.
Payslips tell you what you get paid
When you get paid you'll be given a payslip, which is a note given or emailed to you that tells you how much money you've made during a certain time and how much money has been taken off for tax.
Tip: You should look at your payslip each time you're paid to make sure you're getting paid correctly. You can talk to your friends at work or your family if you're not sure. If you think your employer is not paying you what you're owed, contact Employment New Zealand(external link that opens in a new tab) for help.
If you're stressed about explaining your situation in English, don't worry! They have translators who can speak in 43 different languages!
Minimum pay rules
In New Zealand there is a legal minimum wage to make sure that workers aged 16 and over get paid at least a minimum rate for each hour worked. You may be paid more than the minimum wage but your employer cannot pay you less. If they do, they're breaking the law!
Minimum wage
If you're a student working on a student visa, you should get paid at least the minimum wage for every hour you work unless you are a starting-out worker or a trainee (see below for more information).
New Zealand's minimum wage(external link that opens in a new tab) from 1 April 2024, is NZD$23.15 per hour (before tax).
There’s a lower rate of NZD$18.52 per hour (before tax) for starting-out workers(external link that opens in a new tab). These include 16 and 17 year olds who have been working continuously with their current employer for less than 6 months. After working 6 months continuously with the same employer they are no longer considered starting-out workers and must be paid the adult minimum wage of NZD$23.15 per hour (before tax).
Training minimum wage
Some employees who are part of a training scheme may also be paid the lower rate of NZD$18.52 per hour (before tax) as the training minimum wage.(external link that opens in a new tab)
The training minimum wage applies to employees aged 20 years or over where their employment agreement states that they have to do at least 60 credits a year of an industry training programme to become qualified in the area they are working in. Many of these employees will be apprentices.
Check out the Tertiary Education Commission information about apprentices(external link that opens in a new tab). An apprentice has the same minimum rights and protections under New Zealand employment law as any other employee but may be paid the training minimum wage.
The training minimum wage does not apply to:
- employees who are being trained at work, for example by their employer at the start of their employment – it only applies to employees doing an approved industry training programme.
- employees who are supervising or training other workers. These employees must be paid at least the adult minimum wage.
If you're not sure what wage rate applies to you, check out Employment New Zealand's information about minimum wage(external link that opens in a new tab) or talk to your employer.
Getting an IRD number and choosing your tax code
In order to pay the right amount of tax, you need to give your employer:
Your IRD number (IRD stands for 'Inland Revenue Department', the government agency responsible for collecting tax in New Zealand)
Your New Zealand tax code.
Good to know: Your IRD number is unique to you, and you keep the same IRD number for life. Applying for an IRD number is free of cost.
IRD number
If you don't have an IRD number, your employer will deduct income tax at the highest non-declaration rate of 45%.
If you have a student visa you or your guardian can apply for your IRD number online (external link that opens in a new tab)after you arrive in New Zealand.
Time limit on applications
Your visa from Immigration NZ includes wording around arrival time. There will be a final date by which you must arrive in New Zealand. This date is also the date when you must apply for an IRD number if you want to use the ‘new arrival to New Zealand’ process.
If you wait until after this date, you'll need to apply for an IRD number using the 'living in New Zealand and not a new arrival' process. Find out more on the Inland Revenue website.(external link that opens in a new tab)
You'll need:
- your passport details.
- your most recent overseas tax number (if you have one).
- your Immigration New Zealand Application Number (from your visa letter).
- your New Zealand bank account number and your name on the account.
Tip: Save your IRD number in your phone so it's quick and easy to fill out forms when you start a new job!
Tax codes
If you earn wages or a salary, your tax code tells your employer how much PAYE ('pay as you earn') to deduct from your income. Remember, this applies to all income you earn from your employment, including commission and piece rates. The tax code you use depends on how many sources of income you have and whether you have a New Zealand student loan.
You need a separate tax code for each source of income that has tax deducted before it's paid to you. You'll have a primary tax code for your main source of income and a secondary tax code for any other sources.
If your income source changes, you may need a new tax code.
Every time you start a new job, your employer will give you a Tax code declaration form (IR330)(external link that opens in a new tab) so you can tell them what your tax code is. On the back of the form there is a chart that helps you understand what your tax code is but you can also check out IRD's information about how to work out tax codes.(external link that opens in a new tab)
Remember, if you are on a student visa you can only work as an employee, so make sure you fill out the form for employees (IR330), and not the form for an independent contractor.
Paying tax and other deductions
If you earn wages or a salary, your employer must deduct PAYE ('pay as you earn') under the PAYE rules. This applies to all income you earn from your employment, including commission and piece rates.
PAYE is the combined income tax and ACC earner's levy. Your PAYE deductions are based on how much you earn each payday and you'll see them on your payslip. The ACC earner's levy is part of a special New Zealand-only scheme run by the Accident Compensation Commission (ACC).(external link that opens in a new tab) If you're hurt in an accident or you're unable to work, some of the costs of medical treatment or compensation are covered.
Your employer cannot make any other deductions unless you have agreed to them in writing. This might be in your employment agreement. The deductions must be reasonable and your employer must consult you before they make the deductions. If you agree to a deduction (other than tax and ACC) you can change it later on by telling your employer in writing.
If you're unsure, talk to someone
International students have the same working rights as everyone else in New Zealand. You should not be treated differently just because you’re on a student visa. Your employer must:
- pay you at least the minimum wage.
- make sure you’re safe at work.
- treat you fairly.
If you're worried about anything at work, first check out What to do if there’s a problem at work. We give you some suggestions about what to do if you have any problems, and give you contacts that can help you!
Tip: If you don't think you're being paid the right amount, you should tell someone. Talk to your friends and family and let them know what's happening. You also have legal rights, and you can speak to Employment New Zealand(external link that opens in a new tab) for advice. They'll tell you what you can do and support you.
If you're worried that you can't explain your situation in English, they have translators who speak 43 different languages. Remember, there are people who can help, you're not alone!
Related pages
Working on a student visa
Working while you study in New Zealand is a great way to get job experience, make new friends, and help with living costs. Just make sure you follow the work conditions on your student visa and find the right balance between work, study and socialising.
Employee rights
Working while you study is a great way to make money, meet people and learn about New Zealand work culture. However, it might be a little different to working back home. Learn about your basic rights as an employee.
Problems at work
New Zealand is a great place to work because it's fair and safe. All employees have the same rights. In rare cases, employers don’t follow the rules. Find out how to get help with bullying and harassment in the workplace.