Your payslip can look like a wall of numbers. Here's what each line means in New Zealand, from the top (what you earn) to the bottom (what lands in your bank account). Figures use the 2026/27 tax year.

Gross pay

Your gross pay is what you earn before any deductions — your salary or your hours × your rate, plus any overtime, commission or bonus for the period.

Deductions taken from your pay

  • PAYE income tax — Pay As You Earn. Your employer works out the tax on your income using the progressive tax brackets and sends it to Inland Revenue for you.
  • ACC earners' levy — 1.75% of your income (up to $156,641 for 2026/27), funding cover for injuries. It's usually bundled into the tax line on many payslips.
  • KiwiSaver (employee) — if you're a member, your chosen rate (3%, 3.5% default from 1 April 2026, 4%, 6%, 8% or 10%) of your gross pay.
  • Student loan — 12% of your pay above the repayment threshold ($24,128 a year, about $464 a week) if you have a loan.

Employer contributions (not deducted from you)

Your payslip may also show your employer's KiwiSaver contribution (at least 3.5% from 1 April 2026). This is paid on top of your pay, not taken out of it. It has ESCT deducted before it reaches your KiwiSaver account.

Net pay

Your net pay (take-home) is gross pay minus PAYE, ACC, KiwiSaver and student loan. It's the amount actually paid to your bank account.

Worked example — $70,000 salary

On $70,000 a year with 3.5% KiwiSaver and no student loan (2026/27):

  • Gross: $70,000
  • PAYE income tax: about −$13,220
  • ACC earners' levy: about −$1,225
  • KiwiSaver 3.5%: −$2,450
  • Net pay: about $53,105 a year (~$1,021 a week)

Plus your employer adds about $2,450 (3.5%) to your KiwiSaver on top.

See your own payslip breakdown

Enter your pay into the NZ Pay Calculator for a line-by-line breakdown, or check a common salary like $70,000 after tax.