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Student loans
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# Student loan repayment deductions

Find out about student loan repayment deductions if you're a salary or wage earner in New Zealand.

### Student loan deductions for your main job

Your employer will generally deduct 12 cents in each dollar you earn over the pay period repayment threshold for your student loan, unless you have a student loan repayment deduction exemption. If you earn below this threshold in your main job, your employer won't make any deductions.

##### Examples

(gross earnings minus pay period repayment threshold) x 12% is the repayment deduction.

Tina earns \$300 a week gross in her main job. Because she doesn't earn over the pay period repayment threshold - \$367 per week - her employer doesn't make any deductions.

Linton earns \$480 a week gross. Because he earns more than the pay period threshold - \$367 per week - Linton's employer deducts \$13.56 for his student loan repayments. (\$480 - \$367) x 12% = \$13.56.

Find out more about pay period repayment obligations

### Student loan deductions for your secondary job(s)

If you have more than one job, you must use a secondary tax code with the "SL" repayment code for any job that's not your main job. The secondary code tells your employer to deduct 12 cents for each dollar you earn from this source.

The secondary rate applies to all your secondary jobs, unless you have a current student loan special deduction rate or student loan repayment deduction exemption.

##### Example

Mathew earns \$520 from his main job and \$100 per week from his secondary job. Mathew has the following deductions made by his employers for his student loan:

Main job
(gross earnings minus pay period repayment threshold) x 12% is the repayment deduction.
(\$520 minus \$367) x 12% is \$18.36.

Secondary job
gross earnings x 12% is the repayment deduction.
\$100 x 12% is \$12.