Annual Leave Payout Calculator NZ 2026

Work out what your annual leave payout is worth when you leave a job, plus 8% holiday pay on your gross earnings — and what the lump sum actually lands in your bank account after PAYE, ACC, KiwiSaver and student loan deductions.

Your holiday pay

Hourly rateHours a weekWeeks worked since last leave paidAnnual leave days owingKiwiSaver rate

Do you have a New Zealand Student Loan?

8% holiday pay

$3,557

on $44,460 gross earnings

Annual leave owing

$1,710

2.0 weeks at $171.00 a day

Lump sum after tax

$4,069

22.8% deducted from $5,267

Ordinary weekly pay: $855.00
Full four-week annual leave entitlement: $3,420
PAYE, ACC, KiwiSaver and student loan on the lump sum: −$1,198

Estimates only. Permanent employees are paid annual leave at the higher of ordinary weekly pay or average weekly earnings over the last 12 months, so if your hours or overtime vary your employer may calculate a higher figure.

What goes into an annual leave payout when you leave a job

A final pay in New Zealand usually bundles three separate things together, which is why the number on your last payslip rarely matches what you expected.

1. Annual leave you have accrued but not taken. Paid at the greater of your ordinary weekly pay or your average weekly earnings over the last 12 months. Enter your leave balance above to value it.
2. 8% of gross earnings since your last entitlement anniversary. This covers the part-year of leave you had not yet become entitled to.
3. Public holidays and alternative days owed. Any unpaid public holiday that falls within your notice period, plus any alternative days you banked and never used.

Example: on a $70,000 salary with 10 days of leave owing and a full year since your last anniversary, the leave itself is worth about $2,692 and the 8% component adds roughly $5,600 — a gross payout near $8,300. After PAYE at your marginal rate, ACC, 3.5% KiwiSaver and any student loan, the amount that actually reaches your account is meaningfully lower, which the calculator above shows line by line.

8% holiday pay or four weeks leave — which applies to you?

Pay as you go (8%)

For genuinely casual work, or fixed-term agreements under 12 months where taking leave is not practical. Your payslip shows 8% of gross earnings added each pay, and it must be identified separately.

Four weeks annual leave

For permanent employees after 12 months of continuous employment. Leave is paid when you take it, at the higher of ordinary weekly pay or average weekly earnings, and untaken leave is paid out when you leave.

Because holiday pay is ordinary salary or wages, a lump sum can look brutally taxed: it is stacked on top of your normal income, so PAYE hits at your marginal rate, and ACC, KiwiSaver and student loan all apply. The bonus tax calculator explains that stacking effect, and the after-tax pay calculator shows your regular take-home for comparison.

Holiday pay questions, answered

How do I calculate my annual leave payout in New Zealand?

Take the number of annual leave days you have not used and multiply them by your daily rate — for a salaried employee that is your annual salary divided by 52, then divided by the number of days you normally work each week. Add 8% of any gross earnings since your last leave entitlement anniversary. The whole amount is paid in your final pay and taxed as ordinary income.

Is an annual leave payout taxed differently in NZ?

No special rate applies, but because it is paid as a lump sum on top of your normal pay it is treated as extra pay and taxed at your marginal PAYE rate. The ACC earner levy applies, student loan repayments apply, and KiwiSaver is deducted unless the payment is genuinely exempt — which is why the net figure often looks much smaller than the gross.

How is holiday pay calculated in New Zealand?

There are two situations. Casual or fixed-term staff who cannot practically take annual leave are usually paid 8% of gross earnings on top of each pay ('pay as you go'). Permanent employees accrue four weeks of annual leave a year, and each week taken is paid at the higher of ordinary weekly pay or average weekly earnings over the last 12 months.

Why is holiday pay 8%?

Four weeks of leave out of a 52-week year is roughly 1/13th of your earnings, which works out at about 8%. The Holidays Act 2003 sets 8% as the equivalent cash figure for pay-as-you-go holiday pay and for any leave still owing in a final pay.

Is holiday pay taxed in New Zealand?

Yes. Holiday pay is part of your gross salary or wages, so PAYE, the ACC earner levy, KiwiSaver and any student loan repayment all apply exactly as they do to normal pay. A lump sum of accrued leave in a final pay is taxed as extra pay at your marginal rate, which is why it can look heavily taxed.

How much holiday pay do I get when I leave a job?

Your final pay includes any annual leave you have accrued but not taken, plus 8% of gross earnings since your last leave entitlement anniversary, plus any pay for public holidays or alternative days owed. It is paid in your last pay run.

Does holiday pay include overtime and bonuses?

Gross earnings for the 8% calculation include overtime, most bonuses, commission and productivity payments. It excludes reimbursements and genuinely discretionary payments the employer is not bound to pay.

Do I get holiday pay on top of my salary?

If you are a permanent salaried employee, no — your four weeks of annual leave are already paid at your normal rate while you are away, so you are not owed a separate 8%. Pay-as-you-go 8% applies only where taking leave is not practical, such as genuinely casual work.

How do public holidays affect holiday pay?

Public holidays are separate from annual leave. If a public holiday falls on a day you would normally work and you do not work it, you get paid your relevant daily pay. If you do work it, you get time and a half plus an alternative day off.

Work out your take-home pay

How we calculate this

This page values holiday pay two ways: 8% pay-as-you-go, and accrued annual leave paid at your current rate. Every figure on this page is worked out in your browser from the rates listed below — nothing you type is sent anywhere or stored.

1Calculate 8% of gross earnings for the pay-as-you-go method used for casual and fixed-term work.
2Value accrued annual leave days at your ordinary weekly pay.
3Run the gross holiday pay figure through PAYE, ACC, student loan and KiwiSaver.
4Show gross and net side by side, since holiday pay is taxed like ordinary income.
5Flag where the greater of ordinary weekly pay and average weekly earnings would apply.

Rates and thresholds in use

Income tax bands: $0–$15,600 at 10.50%; $15,600–$53,500 at 17.50%; $53,500–$78,100 at 30.00%; $78,100–$180,000 at 33.00%; over $180,000 at 39.00%.
ACC earners' levy: 1.75% of liable earnings.
Student loan: 12% of every dollar earned above $24,128 a year.
KiwiSaver employee rates: 3.5% by default, or 4%, 6%, 8% or 10% of gross pay; a temporary reduction to 3% is available.

Last reviewed August 2026 by the Payrise NZ team. We re-check these settings whenever Inland Revenue, MBIE or ACC announce a change, and update this page the same week.

Sources: Employment New Zealand — holiday pay.

Keep going with the rest of the toolkit — each one uses the same up-to-date New Zealand tax settings.