Final Pay Calculator (NZ)
Updated November 2026 · Free · No sign-up
Calculate your NZ final pay — the four-layer stack: unpaid wages, accrued annual leave (greater-of rates), 8% of gross since your last leave anniversary, and unused alternative holidays.
Quick answer: NZ final pay = wages owed + accrued annual leave weeks (max of OWP/AWE) + 8% of gross earnings since the last anniversary (the not-yet-entitled portion) + alternative holidays paid out — due the next normal payday.
The Four Layers
| 1. Outstanding wages | Final period’s hours/salary + any owed OT |
| 2. Entitled leave | Remaining weeks × the greater-of rate |
| 3. The 8% | 8% of gross since the last anniversary (leave not yet "entitled") — minus any taken-in-advance |
| 4. Alternative holidays | Unused alt days at relevant daily pay |
Worked Example
2.5 weeks at $1,400 ($3,500) + 8% × $32,000 ($2,560) + 2 alt days ($560) + $1,100 final wages = $7,720 gross final pay — taxed as a lump (extra-pay rates), due on the next normal payday after the end.
The Audit Points
- Leave rate: final-pay leave uses the SAME greater-of test — final pays at bare salary rate repeat the national underpayment pattern.
- The 8% base includes OT/commissions since anniversary — payroll shortcuts miss it.
- Alt days: the forgotten line — count every holiday you worked.
- Public holidays after leaving: edge rule — holidays falling within the leave period your final pay covers can add days (the "termination holiday" quirk).
Timing and Disputes
Due the next regular payday (agreement can’t push it unreasonably); deductions need written consent (general deduction clauses got curtailed — specific consultation applies). Disputes: MBIE labour inspectorate / ERA with 6-year reach. The KiwiSaver employer contribution rides the final pay’s gross too.
Frequently Asked Questions
What is included in NZ final pay?
Outstanding wages + entitled leave at greater-of rates + 8% of gross since your last leave anniversary + unused alternative holidays — due the next normal payday.
What is the 8% in final pay?
The leave value accrued since your last anniversary (not yet a 4-week entitlement) — 8% of ALL gross earnings in that window, including OT and commissions.
Are alternative holidays paid out?
Yes — every unused alt day (from working public holidays) cashes out at relevant daily pay; count them yourself.
What rate applies to leave in final pay?
The same greater-of OWP/AWE test as normal leave — salary-only final pays underpay variable earners.
When must final pay arrive?
By the next regular payday after employment ends — unreasonable delays and unconsented deductions are ERA territory.
✓ Formula verified • Last updated: November 3, 2026