Your job ad says $70,000, but the money that lands in your bank account is less. That's the difference between gross pay and net pay — and knowing it helps you budget for what you actually take home.
Gross pay vs net pay
- Gross pay is your total income before any deductions — the salary or hourly rate you're offered.
- Net pay (your "take-home pay") is what's left after tax and other deductions.
What's deducted from your NZ pay
| Deduction | What it is |
|---|---|
| PAYE income tax | Progressive tax on your income (10.5%–39%) |
| ACC earner levy | 1.75% of income, for accident cover |
| KiwiSaver | Optional — usually 3% of gross if you're a member |
| Student loan | 12% of income over $24,128/year, if applicable |
Worked example: $70,000 salary
On a $70,000 gross salary (2026/27), with no KiwiSaver or student loan:
- PAYE income tax: about $13,221
- ACC earner levy (1.75%): $1,225
- Net (take-home) pay: about $55,554 a year — roughly $1,068 a week.
Add 3% KiwiSaver and your take-home drops by another $2,100 a year — but that money is going into your own retirement savings, not tax.
Why your payslip might differ
Your exact net pay depends on your tax code, whether you're in KiwiSaver, your contribution rate, and any student loan. That's why two people on the same salary can take home different amounts.
Work out your take-home
Use the NZ Pay Calculator to see your exact net pay, or check a common salary directly — like $70,000, $80,000 or $100,000 after tax.