A payslip is a record that shows how much an employee earns and what deductions are made from their pay. It usually lists wages, tax, KiwiSaver, and leave balances. In New Zealand, payslips help both employers and employees keep track of pay, tax, and entitlements while ensuring everything is clear and compliant.
For NZ businesses, payslips aren’t just paperwork. They show transparency, build trust, and help avoid disputes. While not every employer is legally required to issue a physical payslip, under the Employment Relations Act 2000 and Holidays Act 2003, all pay and leave records must be kept and made available to employees on request. Most modern workplaces in Auckland and across New Zealand now issue digital payslips through online payroll systems or mobile apps as a simple way to stay compliant and organised.
We’ve worked with many small businesses who started with manual payroll systems. One Auckland café owner once told us, “Switching to online payslips made it easier to track holiday pay and avoid staff confusion.” Stories like this show how clear records reduce stress for everyone.
In this guide you’ll learn:
- What information must appear on a payslip
- Legal requirements for NZ employers
- How to read and understand a payslip
What Is a Payslip?
A payslip (or salary payslip) is a document that details an employee’s earnings for a specific period. It includes gross pay (before deductions), tax deductions, KiwiSaver contributions, and net pay (take-home pay). Payslips may also show year-to-date (YTD) totals, leave balances, and any bonuses or commissions.
Most NZ employers provide payslips weekly, fortnightly, or monthly, depending on pay frequency.
Are Payslips a Legal Requirement in NZ?
While there’s no single law saying “you must issue a payslip,” employers are legally required to keep accurate wage and time records under the Employment Relations Act. These records must be available to employees on request. Providing a payslip is the easiest way to meet this requirement.
Failing to keep proper records can lead to compliance issues and penalties from the Labour Inspectorate at Employment New Zealand.
What Should Be Included on a Payslip?
A payslip in NZ should include the following details:
- Employee’s name and job title
- Employer’s name and contact information
- Pay period dates
- Hours worked and hourly rate (if applicable)
- Gross pay and deductions (tax, KiwiSaver, student loan, etc.)
- Net pay (take-home pay)
- Holiday and leave balances
- Any bonuses, commissions, or allowances
Some payslips also include ESCT (Employer Superannuation Contribution Tax), which is the tax on employer KiwiSaver contributions.
How to Read a Payslip
Reading a payslip can be confusing at first, but here’s what to look for:
- YTD (Year to Date): The total amount you’ve earned and paid in deductions since the start of the tax year.
- Accrued Leave: The amount of leave you’ve earned but haven’t used yet.
- ESCT: The tax applied to your employer’s KiwiSaver contributions.
- PAYE: Income tax deducted by your employer and paid to Inland Revenue (IRD).
Understanding these terms helps employees confirm they’re being paid correctly and helps employers maintain transparency.
Key Takeaways for Employers and Employees
- Always keep accurate wage and time records.
- Provide clear, easy-to-read payslips, even if digital.
- Use payroll tools or templates to save time and stay compliant.
- Review payslips regularly to ensure deductions and pay are correct.
- Ask your employer or HR team if you need clarification.
- Keep copies for loan, tax, or personal reference.
Not sure where to start?
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