How much you keep: the deduction rules
| Situation | Free earnings | Reduction after that |
|---|---|---|
| Single, no children | $160 a week before tax | 70 cents per $1 above $160. Benefit stops at the cut-out ($693 for 25+). |
| Sole parent (Jobseeker or Sole Parent Support) | $160 a week (up to $180 if you pay childcare while working) | 30 cents per $1 between $160 and $250 (max $27), then 70 cents per $1 above $250. |
| Couple | $160 a week jointly | 35 cents per $1 of joint income above $160, off each benefit. |
The calculation uses your gross (before tax) weekly pay, and the reduction comes off your net benefit. Accommodation Supplement and other payments may also be affected.
Worked examples at the 23.95 minimum wage
Minimum wage from 1 April 2026 is $23.95 an hour. Estimates only.
- Single, 25+, works 15 hours: gross about $359.25. Reduction = (359.25 - 160) x 0.7 = about $139.48. Benefit becomes roughly $372.55 - $139.48 = $233.07 after tax, plus the pay (less tax).
- Single, 25+, works 8 hours: gross about $191.60. Reduction = (191.60 - 160) x 0.7 = about $22.12. You keep about $350 of benefit plus the pay.
- Sole parent works 12 hours: gross about $287.40. Reduction = $27 + (287.40 - 250) x 0.7 = about $53.18. Benefit is roughly $521.52 - $53.18 = $468.34 after tax.
How to report casual and changing hours
- Before you start a job, call 0800 559 009 so they can review your payments and check what else you could get.
- Declare income in MyMSD ('Declare wages'). Declare it for the week you earn it, not the week you are paid.
- The deadline is Friday 6pm for that week, including weekend work. If you must change an estimate after Friday 6pm, call 0800 559 009 before midday the following Monday.
- Give your gross pay for the week (or your best estimate), hourly rate and hours, plus the employer name or that you are self-employed.
- If your income and hours are the same every week, you only need to declare once: the amount continues until you say it has changed or stopped.
Phone script when hours vary
Hi, I get Jobseeker Support. My hours at my casual job change from week to week. I'd like to confirm the best way to declare them. I'll declare my gross pay each Friday for the week just worked. If I make a mistake, I'll call before midday Monday. Can you confirm how my payment is calculated at 10, 15 and 20 hours a week?
When your benefit drops to $0
If earnings reduce your payment to $0, your benefit stays open for 6 weeks at $0 and then stops. If your job ends or hours drop after it has been cancelled, you will need to reapply. Keep a note of when you went to $0, and reapply quickly if your income falls: a new application can be backdated only if you complete it within 20 working days of first contacting Work and Income.
Stand-down: Work and Income says there is no stand-down if your benefit was cancelled because you found a job and you return to a benefit within 26 weeks, or if your benefit is suspended and then resumed. Otherwise most weekly benefits have a 1 or 2 week stand-down depending on your average weekly income and family size. A separate non-entitlement period of up to 13 weeks can apply if you left a job without good reason or were dismissed for misconduct. See the stand-down guide.
What's coming: less manual reporting
Budget 2026 announced that from June 2027 people will start moving from annual to weekly income charging, and from 3 July 2028 payment rates will be calculated automatically using wage and salary information from Inland Revenue, so most people won't need to declare wages by hand. Until then, keep declaring.
Sources
- Deduction table: Jobseeker Support single (opens in a new tab)
- Deduction table: Sole Parent Support (opens in a new tab)
- Wages change / casual work (opens in a new tab)
- How income affects your payments (opens in a new tab)
- Changes announced in Budget 2026 (opens in a new tab)
General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.