# Final pay Official source: https://www.employment.govt.nz/pay-and-hours/pay-and-wages/final-pay Scanned: 2026-06-07T03:31:31.402Z Use this as a current official guidance reference, not as a substitute for legal advice. ## Page Text Home Pay and hours Pay and wages Final pay Pay and wages Pay and hours Pay and wages Minimum wage Holidays and leave pay Types of pay Allowances Deductions and premiums Pay periods and paydays Payslips Final pay Setting pay, pay reviews and pay rises Hours and breaks Everyone Final pay When an employee stops working for an employer, their last pay must include their final wages, all the holiday pay they’re entitled to, and any other payments owing. Employee rights The final pay must be paid on or before the pay day of the final pay period – this might be after the employee’s last day of work. The employer must pay: until the end of the notice period The amount of time between giving notice and the date the employment relationship ends. , if the employee has given the right amount of notice for all the hours worked since the last pay until the end of employment for all annual holidays Paid time away from work for rest and recreation. , public holidays An observed day of national, religious, or cultural significance. Special payment rates and entitlements apply to public holidays. and alternative holidays A paid day off to take at another time. Employees get an alternative holiday when they work on a public holiday that is an otherwise working day. owed any additional lump sum or other payments owing – these may be included in the employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. or negotiated as part of a leaving package. Creating an employment agreement When final pay is incorrect If an employee does not receive everything they’re owed in their final pay, they may have a claim for unpaid wages or holiday pay or another breach of their employment agreement. Labour Inspectorate When employees give the right amount of notice The employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. will include how much notice an employee needs to give their employer when they want to leave the job. Giving notice If an employee has given the right amount of notice, their employer must pay them to the end of their notice period. Their employer can ask the employee not to work their full notice period, but only if the employee: agrees to this, or has a clause in their employment agreement that says they can be paid instead of working their notice period. Even if the employee agrees not to work for some or all the notice period, their employer must still pay them for the full notice period. If the employee asks their employer to waive all or some of the notice period, and their employer agrees, the employee will only get paid for the part of the notice period they actually worked. When employees do not give the right amount of notice If an employee gives their employer less than the amount of notice in their employment agreement, they only have to pay the employee for the days they actually worked. Deductions Leave and holiday payments in final pay Public holidays Employees can sometimes be entitled to be paid for public holidays An observed day of national, religious, or cultural significance. Special payment rates and entitlements apply to public holidays. that fall after their last day at work. To work out whether the employee is entitled to be paid public holidays that happen after their employment has ended, their employer will treat any unused annual holidays that they are entitled to as if they were taking it immediately after their last day of employment. If a public holiday falls within this period: the employee must be paid for it if it falls on a day that they usually would have worked if they were still employed the annual holiday Paid time away from work for rest and recreation. is extended by one day for each public holiday that they were entitled to be paid for – this extended period may have more public holidays, which they may also need to be paid for. This can happen if: they have worked for the employer for at least 12 months and are entitled to annual holidays, and they have unused annual holidays they are entitled to at the time their employment ends. Leave and holiday pay Tara works Monday to Friday. On her last day of work, Friday 22 December, she has 5 days of annual leave entitlement left. These 5 days of leave are added on to her end date, which makes her official last day of work Friday 29 December. Two public holidays fall within this period (Christmas Day and Boxing Day), so she must be paid for these public holidays. The 2 days’ annual leave which would have covered Christmas Day and Boxing Day are then added on to Monday and Tuesday of the following week. This creates an extended period which ends on 2 January. This extended period includes the public holidays on 1 and 2 January, so these public holidays must also be treated and paid as public holidays. The final 2 annual holidays are then "taken" on 3 and 4 January. In her final pay, Tara must be paid for 5 days of annual leave and 4 public holidays. Annual holidays How much an employee gets paid for annual holidays in their final pay depends on how long they have been working for their employer. Annual holiday pay Pay as you go annual holidays payment Employees will get an annual holiday payment of 8% of their gross earnings, less any amount they have already been paid for: annual holidays taken in advance annual holidays on a pay-as-you-go basis. The employee’s gross earnings are everything they have earned since they started with their employer, including any other payments in their final pay. Employees must be paid for any remaining annual holidays that they’re entitled to. This is paid as if the leave is taken at the end of their employment, at whichever rate is higher of: ordinary weekly pay, or average weekly earnings. Employees will also get payment of 8% of their gross earnings since their last anniversary date, including other payments made in their final pay, minus any amount they have already been paid for: annual holidays taken in advance annual holidays on pay-as-you-go basis. For more information about working out the ordinary weekly pay or average weekly earnings, see: Annual holiday pay If an employee worked "keeping in touch" days while on parental leave, but is not returning to work, their gross earnings for calculating annual holiday payments in their final pay does not include their “keeping in touch” payments. This is because if they do not return to work after parental leave, their last day of work was the day before they started their parental leave. Being on ACC is considered continuous employment. This means the employee will still get annual holiday entitlement on their anniversary date. If an employee leaves their job after being on ACC, their employer must pay any outstanding annual holidays in their final pay. This is based on the higher of the employee's: average weekly earnings for the 12 months before their end date, or ordinary weekly pay. For more information about working out the average weekly earnings or ordinary weekly pay, see: Annual holiday pay Alternative holidays If an employee has worked a public holiday and is owed an alternative holiday A paid day off to take at another time. Employees get an alternative holiday when they work on a public holiday that is an otherwise working day. , then they must be paid the relevant daily pay The amount an employee would have been paid if they’d worked on a public holiday, alternative holiday, or on a day they took sick leave, family violence leave or bereavement leave. or average daily pay The daily average of the employee’s total gross earnings over the past 52 weeks. (if applicable) for their last day of work – regardless of the rate of pay at the time they earned the alternative holiday. Alternative holidays do not affect the employee’s end date for working out pay for public holidays An observed day of national, religious, or cultural significance. Special payment rates and entitlements apply to public holidays. . Sick and bereavement leave payments There is no legal entitlement for unused sick Paid time away from work that eligible employees can take to care for themselves, their partners or children, or other dependants. or bereavement leave Paid time away from work that gives an eligible employee time to grieve and to take care of matters if someone close to them dies. It can be taken at any time and for any purpose relating to the bereavement. to be paid out when they leave an employer. If an employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. required the payment of unused sick leave, the employer would have to comply with the agreement, or an employer could choose to make such a payment. If an employee thinks their final pay is wrong If an employee thinks there's a problem with their final pay, they must first check with their employer. If that does not resolve the problem, or they want advice, call us on 0800 20 90 20 or email us. Contact us Termination pay flowchart [PDF, 785 KB] Ted has worked for his employer for 1 year and 1 month. His last day of employment is 12 May and the last date he became entitled to annual holidays was 12 April. Ted took a week’s annual holidays in April and so has 3 weeks of annual holiday entitlement left on 12 May. Ted also has 2 alternative holidays from working on public holidays that he has not taken. Ted’s final pay is made up of: his pay for the period worked since the previous pay period until and including 12 May payment for his remaining 3 weeks of annual holiday entitlement, at the rate of the greater of ordinary weekly earnings or average weekly earnings payment for the 2 alternative holidays at relevant daily pay (or average daily pay) payment of the amount of 8% of gross earnings for the period between 12 April and 12 May. Ted's 3 weeks of unused holiday and the value of the 2 alternative holidays are included in gross earnings for the 8% calculation. Jason finishes work on Friday 16 October. Jason has been paid up to Tuesday 6 October. He has 3 alternative holidays owed and is entitled to 4 weeks paid annual holidays. He last became entitled to annual leave on 25 June. Jason’s final payment is made up of: his pay for the period worked since the previous pay period (8 days’ pay for Wednesday 7 October through to Friday 16 October) payment of 4 week annual holiday pay calculated at the rate of the greater of ordinary weekly pay or average weekly earnings payment for his 3 unused alternative holidays at the rate of relevant daily pay or average daily pay (if applicable) an additional day’s payment for Labour Day (which falls on Monday 24 October) at relevant daily pay or average daily pay (if applicable). This is because it falls during the 4 week annual holidays extension added to the end of his employment to reflect annual holidays entitlement owing 8% of his gross earnings since 25 June, his last anniversary date. These gross earnings include: the 4 week annual holiday paid out the payment for the alternative holidays the payment for the public holiday. Published: 29 February 2024 Last modified: 20 May 2026 Written for: Everyone Share this page: Print this page: