NZ Redundancy & Severance Calculator
Calculate your total redundancy package: severance compensation, notice pay, accrued annual leave, and IRD lump sum tax (with statutory 0% ACC levy exemption on severance).
Salary & Employment Tenure
Weekly pay: $1,731 / wk
Total Estimated Net In Your Bank
Gross Redundancy Package: $36,346
Payout & Tax Treatment Specification
Under NZ tax law, pure redundancy compensation is exempt from the 1.60% ACC Earners' levy, saving you significant tax on your severance portion.
Redundancy Law in New Zealand
Is redundancy pay mandatory?
No statutory minimum redundancy pay exists in New Zealand. Entitlement depends entirely on the terms of your Individual Employment Agreement (IEA) or Collective Agreement.
Annual Leave Payout
Unlike redundancy compensation, payout of all accrued and untaken annual leave is mandatory under the Holidays Act 2003 and must be paid in your final pay.
📊 Statutory Breakdown Matrix
| Statutory Component | Amount / Metric |
|---|---|
| Gross Redundancy Severance Pay | -- |
| Payment in Lieu of Notice | -- |
| Accrued Unused Annual Leave Cash-Out | -- |
| Total Gross Separation Settlement | -- |
| PAYE Tax Withheld (Extra Pay Rate) | -- |
| ACC Earner Levy (Exempt on Severance) | -- |
| Total Net Cash Final Settlement | -- |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.