Repaying my student loan when I earn salary or wages

It's important to use the right tax code when you're working. This lets your employer know they need to make deductions from your salary or wages.

If you earn salary or wages use the SL tax code

When you get a salary or wage and have a student loan you must add 'SL' to your tax code. This tells your employer you have a student loan and they need to deduct repayments from your pay to put towards your loan.

The repayments from your income depend on:

• how much you earn
• if it is your main or secondary income.

Tax codes for individuals

You make student loan repayments when you earn more than the repayment threshold

The amount you have to pay to your student loan each year is 12% of every dollar you earn over the repayment threshold. 

For the 2025 tax year the annual repayment threshold is $24,128.

The repayment threshold is broken down into the following pay period thresholds.

• $464 if you're paid weekly.
• $928 if you're paid fortnightly.
• $1,856 if you're paid every 4 weeks.
• $2,010.66 if you're paid monthly.

Student loan repayments for your main job

You repay 12% of every dollar you earn over the pay period repayment threshold when you use a tax code with 'SL' for your main job (M SL or ME SL).

For example, in the 2025 tax year, if you earn $600 a week before tax, your repayment will be $16.32.

$600 (weekly pay before tax) − $464 (weekly repayment threshold) = $136.
$136 (income over the repayment threshold) × 12% (repayment rate) = $16.32.

Benefits and payments from Ministry of Social Development (MSD) are considered main sources of income, but can only use the M tax code (not M SL). This means no student loan repayments are deducted from these sources of income. If you get a payment from MSD and earn other income, you may want to apply for a student loan special deduction rate.

Student loan special deduction rate

Student loan repayments for your secondary job

The repayment threshold does not apply to secondary jobs because it has already been taken into account with your main job. This means you repay 12% of every dollar you earn from your secondary job to your student loan.

For example, if you earn $200 a week before tax in a secondary job, your repayment will be $24.

$200 (weekly pay before tax) × 12% (repayment rate) = $24

Special deduction rates for secondary jobs

If you have more than 1 job and you earn less than the pay period repayment threshold from your main job, you can apply for a special deduction rate for your secondary job. This lets the unused amount of the pay period repayment threshold to be used with your secondary income, reducing your repayments.

Student loan special deduction rate

Repayment deduction exemptions

In some situations, you may earn over the pay period repayment threshold, but less than the annual repayment threshold (such as working a holiday job). A student loan repayment deduction exemption may be the best option for you in these situations.

Student loan repayment deduction exemption

Pay your loan off faster with extra repayments

You can make extra repayments to your loan if you want to pay it off faster.

How to make extra repayments to your student loan

Work out when you'll pay off your student loan

Use our student loan repayment calculator if you want to see how long it will take to pay off your loan. You can include extra repayments in your calculation.

Student loan repayment calculator

Adjustments to deductions

Your employer may need to correct the amount of a student loan deduction after they have notified you or us, if the original amount was incorrect. To provide you with certainty, after 4 years your assessment is final.