Payslip
Learn what a payslip is, what it must show in New Zealand, and how to read one.
Published Thursday 23 July 2026
Table of contents
Key takeaways
- A payslip shows what an employee earned in a pay period and what was taken out, so they can see how their net pay was worked out.
- New Zealand law doesn't strictly require you to issue a payslip, but you must keep accurate wage, time, holiday and leave records and share them on request.
- A typical New Zealand payslip lists gross pay, deductions like PAYE and KiwiSaver, net pay, leave balances and year-to-date totals.
- Most employers now send electronic payslips by email or make them available online through payroll software.
What is a payslip?
A payslip is a document an employer gives an employee each payday. It shows the total the employee earned, less deductions like tax, to arrive at their take-home pay.
You might also see a payslip called a pay stub, paycheck stub or pay advice. Whatever the name, it gives your employee a clear record of how their pay was calculated.
What's included on a payslip in New Zealand?
A payslip pulls together the details behind a single pay run so your employee can check everything at a glance. A New Zealand payslip usually shows:
- Employee name and employee number
- IRD (Inland Revenue Department) number
- Pay period and pay date
- Pay rate and hours worked
- Gross pay, or total pay before deductions
- Net pay, or take-home pay after deductions
- Deductions such as PAYE (pay as you earn) tax, KiwiSaver, student loan repayments and child support
- Leave balances, including annual and sick leave
- Allowances and bonuses
- Year-to-date (YTD) totals for pay and deductions
Are payslips a legal requirement in New Zealand?
New Zealand law doesn't strictly require you to issue a payslip. It does require you to keep accurate records and share them when an employee asks.
Under the Employment Relations Act 2000 and the Holidays Act 2003, you must keep wage and time records and holiday and leave records for each employee. You also have to provide this information to an employee on request.
If an employee doesn't get a payslip, they can ask you for these details. Employment New Zealand sets out both the record-keeping rules and what employees can request.
How to read your payslip
Once you know what each term means, a payslip is easy to read from top to bottom. Here's what the key terms tell you.
- Gross pay is your total earnings for the pay period before any deductions come out.
- Net pay is your take-home pay, the amount left after all deductions.
- PAYE (pay as you earn) is the income tax your employer deducts from your pay and sends to Inland Revenue.
- KiwiSaver shows the contributions deducted from your pay towards your retirement savings.
- ESCT (employer superannuation contribution tax) is the tax applied to your employer's KiwiSaver contributions.
- Year to date (YTD) is the running total of your pay and deductions since the start of the tax year.
- Leave balances show how much annual, sick and other leave you have available.
Paper vs electronic payslips
A payslip was traditionally a paper document handed to an employee with their pay. That's changed as payroll has moved online.
Today most employers use electronic payslips, emailed to employees or made available to view online. Electronic payslips are quicker to send, easier to store and simple for employees to find when they need them.
Sort payslips and payroll with Xero
Running payroll by hand takes time you'd rather spend on your business. Payroll software works out gross pay, deductions and net pay for you, then produces a clear payslip for every employee.
With Xero, you can pay your team, keep accurate wage and leave records and share payslips automatically, all in one place. See how it fits your business and get one month free.
FAQs on payslips
Here are answers to some frequently asked questions about payslips in New Zealand.
Are payslips legally required in New Zealand?
No, New Zealand law doesn't strictly require you to issue a payslip. You must keep accurate wage, time, holiday and leave records and provide them to an employee on request.
What's the difference between gross pay and net pay?
Gross pay is total earnings before any deductions. Net pay is take-home pay, the amount left after deductions like PAYE and KiwiSaver come out.
What is PAYE on a payslip?
PAYE stands for pay as you earn. It's the income tax your employer deducts from your pay and passes on to Inland Revenue.
Can a payslip be sent electronically?
Yes, most employers now send payslips electronically. You can email them or make them available for employees to view online through payroll software.
Related terms
Learn more about payslips
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Payslip template
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.