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Changes to the myIR login screen are coming You will not be able to use myIR between 1pm Saturday 8 October and 8am Monday 10 October. This is so we can update our external authentication system. From Monday 10 October the myIR login page will have a new look and feel, but the login process will not change.

Cost of Living Payment Eligible customers will have the payment automatically paid into their bank accounts by the end of the day 3 October 2022. The payments will be staggered and Credit Union customers may not receive their payment until 4 October 2022. Cost-of-Living-Payment

Your employees receive holiday pay either when they take annual leave or when they do not work on a public holiday. You include it as earnings when you pay it to an employee.

There are different ways to pay and work out tax on holiday pay.

Holiday pay in an employee's regular pay

You can pay holiday pay in an employee's regular pay:

  • instead of their salary or wages when they take annual leave
  • as an extra 8% of their gross earnings each time you pay them.

When you include holiday pay in an employee's regular pay you can use our calculator to work out:

  • PAYE deductions
  • student loan repayments
  • KiwiSaver deductions, employer contributions and ESCT.

Holiday pay as a lump sum

You can pay holiday pay as a lump sum either:

  • before your employee takes the holiday (holiday pay paid in advance)
  • when an employee wants to cash in annual leave
  • at the end of an employee's employment, to pay out the balance of their leave entitlement.

When you pay holiday pay as a lump sum it is usually taxed as a lump sum payment.

Lump sum payments


If you are paying holiday pay as a lump sum before your employee takes the holiday (holiday pay paid in advance) you have options for how to tax the payment.

Holiday pay paid in advance

5 minutes
PAYE deductions from salary or wages calculator

Employers and employees can work out how much PAYE should be withheld from wages.

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Last updated: 02 Jun 2020
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