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Your final pay explained (including the public holiday rule)

6 minute readStop 3: Last day

In short

Final pay = wages worked + unused annual leave + 8% of gross earnings since your last anniversary + any other money owed (like redundancy compensation). If you have 12+ months' service, unused leave is treated as taken straight after your last day, so public holidays in that window must also be paid.

Tools for this guide

What's in final pay

  • Wages or salary for hours worked, including your notice period if you're paid for it.
  • Payment for all untaken annual holidays you're entitled to, at the higher of ordinary weekly pay or average weekly earnings.
  • 8% of gross earnings since your last anniversary date (less anything already paid, e.g. leave taken in advance or pay-as-you-go holiday pay). Your paid-out leave counts towards those gross earnings.
  • Payment for alternative holidays (lieu days) at relevant daily pay or average daily pay.
  • Any other payments owed: redundancy compensation, bonuses owed, agreed leaving package.

The public holiday extension

If you have 12+ months' service and unused annual leave, your employer treats that leave as taken immediately after your last day. Any public holiday falling in that period (on a day you would normally have worked) must be paid. That extends the period by a day, which may catch further public holidays.

When must it be paid?

Holiday pay must be paid on or before the pay day of your final pay period. Final wages and other payments are usually paid at the same time.

If it looks wrong

  1. Ask payroll for an itemised breakdown.
  2. Raise the error in writing.
  3. Contact Employment NZ on 0800 20 90 20 or use their online form. You may have a claim for unpaid wages or holiday pay.

Law changes in 2028

The Holidays Act will be replaced by the Employment Leave Act on 6 August 2028. Until then the current rules apply. Keep copies of payslips and leave records.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.