Pay & wages guide · 9 min read
Starting Your First Job in NZ: Tax Code, KiwiSaver and Your First Pay Slip
Your first job comes with forms nobody explains. Here is what to sort out before day one, what comes out of your pay and why, and how to check your first pay slip is right.
Before day one: three things to sort
- Get an IRD number. Apply through Inland Revenue. Without one, your employer must take tax at the non-declaration rate of 45%, which is far more than you owe.
- Read and sign your employment agreement. Every employee must have one in writing. Check the hourly rate or salary, the usual hours, how overtime is paid and whether there is a 90-day trial period.
- Have your bank account number ready. Your pay goes straight into it, usually weekly or fortnightly.
Your tax code: almost always M
On your first day you fill in an IR330 tax code declaration. For your only or main job the answer is nearly always M, or M SL if you have a student loan. The ME code is for some people on low incomes who qualify for the independent earner tax credit, which most first-job workers do not.
Secondary codes (SB, S, SH, ST, SA) are only for a second job alongside a main one. Using one on your only job means too much tax comes out. Our tax code guide walks through the form, and the tax code calculator checks your answer.
KiwiSaver: you'll be enrolled automatically
If you are 18 to 64 and not already a member, starting a new job enrols you in KiwiSaver automatically. The default contribution is 3.5% of your gross pay, and your employer adds at least 3.5% on top, less ESCT tax.
You can opt out between day 14 and day 56, but think carefully: opting out also stops the employer money and the yearly government contribution. You can pick a higher rate of 4%, 6%, 8% or 10% at any time — see KiwiSaver contribution rates.
What you'll actually take home
From 1 April 2026 the adult minimum wage is $23.95 an hour and the starting-out rate is $19.16. Here is what typical first jobs pay each week after deductions, with the 3.5% KiwiSaver default, the 1.75% ACC levy and no student loan:
| Job | Gross a week | PAYE | ACC + KiwiSaver | Take-home |
|---|---|---|---|---|
| Starting-out $19.16, 20 hrs | $383.20 | $46.06 | $20.12 | $317.02 |
| Adult $23.95, 20 hrs | $479.00 | $62.82 | $25.15 | $391.03 |
| Adult $23.95, 40 hrs | $958.00 | $146.65 | $50.30 | $761.06 |
PAYE is worked out per pay, so a single week can differ slightly from these yearly averages. Run your own rate and hours in the hourly to salary calculator, or see the full weekly breakdown in the take-home pay calculator.
Reading your first pay slip
Your employer must keep accurate wage records, and most give you a pay slip each pay day. Check these lines:
- Hours and rate: do the hours match what you worked, and is the rate what your agreement says?
- Gross pay: hours × rate, plus any overtime or allowances.
- PAYE: income tax, including the ACC earners' levy. Check your tax code is printed correctly.
- KiwiSaver: your 3.5% (or chosen rate). The employer's share may appear separately.
- Holiday pay: if you are casual, you may be paid an extra 8% each pay instead of building up leave.
- Net pay: what lands in your bank account.
If something looks wrong, ask payroll first — honest mistakes are common in the first pay run.
Your rights from day one
- No unpaid trials. If you are working for the business, it must pay you at least the minimum wage.
- Holidays. Permanent staff get four weeks' annual leave after 12 months. Casual or short fixed-term workers can be paid 8% holiday pay instead — see the holiday pay calculator.
- Rest and meal breaks and sick leave after six months with the same employer.
- Minimum wage on salaries too. A salary must still work out at no less than the minimum wage for every hour worked — check the minimum wage page.
Full details are on Employment New Zealand.
Choosing between offers
If you have more than one offer, don't compare only the hourly rate. Hours, overtime, allowances and employer KiwiSaver can make the lower-paid job the better deal. Put them side by side in the job offer comparison calculator.
This guide is general information, not legal or financial advice. Rates current for the 2026/27 tax year.
Run your own numbers
Check your rate, tax code and offers before your first pay day.
- Job Offer Comparison CalculatorCompare up to four salary or hourly offers after tax.
- Hourly to Salary ConverterConvert an hourly rate to an annual salary and back again.
- NZ Tax Code CalculatorFind the right IR330 code — M, ME, M SL or a secondary code.
- Minimum Wage NZ 2026Current minimum wage rates and what they pay after tax.
Frequently asked questions
What tax code do I use for my first job in NZ?
For your only or main job, use M. If you have a student loan, use M SL. Secondary codes such as S or SH are only for a second job. You give the code to your employer on the IR330 form.
Do I need an IRD number to start work?
Yes. Your employer needs your IRD number for PAYE. If you start before you have one, they must deduct tax at the higher non-declaration rate until you supply it, so apply through Inland Revenue as early as you can.
Am I automatically put into KiwiSaver?
New employees aged 18 to 64 are automatically enrolled when they start a new job, unless they are already a member. The default employee rate is 3.5% of gross pay. You can opt out between day 14 and day 56 of starting, but you then miss the employer contribution.
What is the starting-out minimum wage?
From 1 April 2026 the starting-out rate is $19.16 an hour. It can apply to 16 and 17 year olds in their first six months with an employer, and to some 18 and 19 year olds who have been on a benefit. Once the conditions no longer apply, the adult rate of $23.95 applies.
Can an employer make me do an unpaid trial shift?
No. If you are doing work for the business, you must be paid at least the minimum wage, even for a trial. A 90-day trial period is different: it is a paid period written into your employment agreement.