Losing your job in New Zealand: the money, the benefits and the cover, in order
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
Losing a job in New Zealand has no single legal script, but the order that avoids the most common mistakes is consistent: check your notice and redundancy pay, confirm your final pay, apply for Jobseeker Support before the stand-down clock runs, then contact your bank and check any existing insurance (Work and Income, retrieved 9 September 2026).
The checklist, in order
Each step below links to a dedicated guide with the full detail, figures and sources.
- Check your employment agreement for a redundancy pay clause. New Zealand has no legal minimum redundancy payment; what you are owed depends entirely on what the agreement says. See redundancy pay in NZ.
- Confirm your notice period. There is no legislated minimum either; your agreement sets it, or "reasonable notice" of generally 2 to 4 weeks applies if it is silent. See notice periods in NZ.
- Check your final pay covers unused holidays, any redundancy payment, and any other owed entitlements.
- Work out the tax on any redundancy payment. It is taxed as a lump sum at 10.5% to 39%, not your normal PAYE rate. See redundancy pay in NZ.
- Apply for Jobseeker Support, which pays up to $426.12 a week before tax for a single adult 25 or over, after a stand-down of usually 1 or 2 weeks. See Jobseeker Support in NZ.
- Contact your bank early if a mortgage is now a concern. All five main banks offer hardship help, but interest still accrues during a deferral. See a mortgage holiday in NZ.
- Check any existing insurance and follow the full step-by-step order for the first 30 days. See made redundant? The first 30 days.
Every guide in this cluster, at a glance
The table below lists every page in this cluster with the single figure it answers, so you can jump straight to the one you need.
| Guide | The figure it answers |
|---|---|
| Jobseeker Support in NZ | Up to $426.12 a week before tax for a single adult 25+ |
| Redundancy pay in NZ | No legal minimum; taxed at a lump sum rate of 10.5% to 39% |
| Notice periods in NZ | No legal minimum; 2 to 4 weeks reasonable notice if the agreement is silent |
| Mortgage holiday in NZ | All 5 main banks offer hardship help; interest keeps accruing |
| Made redundant? First 30 days | The step-by-step order to work through all of the above |
(Each figure sourced and dated on its own guide; see the References section of this page and each linked guide.)
Who to contact, in order
Different problems in a job loss are solved by different organisations, and knowing which one to contact first saves time:
| If your question is about... | Contact | What they can do |
|---|---|---|
| What you're owed from your employer | Your employer, or Employment New Zealand | Confirm notice, final pay and any redundancy clause |
| Weekly income while you look for work | Work and Income | Jobseeker Support, once the stand-down passes |
| Tax on a redundancy payment | Inland Revenue | Confirm the lump sum rate that applies to your income |
| Mortgage repayments | Your bank's hardship team | Assess a repayment deferral, restructure or reduced repayments |
| Existing insurance cover | Your insurer or adviser | Confirm whether a policy already held responds to job loss |
Source: Employment New Zealand, Work and Income, Inland Revenue and the five main banks' own pages, retrieved 9 September 2026.
Redundancy pay and notice, answered plainly
Is there a legal minimum redundancy payment in NZ?
No. Employment New Zealand states that whether you receive a redundancy payment depends entirely on your employment agreement, and if the agreement does not mention redundancy pay, no compensation is owed by law (Employment New Zealand, Redundancy, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full detail.
How is redundancy calculated in NZ?
There is no statutory formula; if your employment agreement includes a redundancy clause, that clause sets the calculation, commonly a number of weeks' pay per year of service (Employment New Zealand, Redundancy, retrieved 9 September 2026). If the agreement is silent, nothing is owed beyond notice and normal final pay.
How much tax will I pay on a redundancy payment?
Redundancy pay is taxed as a lump sum at a flat rate from 10.5% up to 39%, depending on your total annualised income including the payment, and it is exempt from the ACC earners' levy and KiwiSaver deductions (Inland Revenue, Calculate PAYE for a lump sum payment, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full rate table.
What notice period do I legally have to give or receive?
Whatever your employment agreement specifies; if it is silent, "reasonable notice" applies instead, generally 2 to 4 weeks depending on the role and circumstances (Employment New Zealand, Notice periods, retrieved 9 September 2026). See our notice periods in NZ guide for the full breakdown, including redundancy-specific notice rules.
Is it better to resign or take redundancy?
Accepting a genuine redundancy generally protects your access to Jobseeker Support better than resigning first, since resigning voluntarily without good reason can trigger a non-entitlement period of up to 13 weeks, compared with the standard 1 or 2 week stand-down after redundancy (Work and Income, Stand-down periods, retrieved 9 September 2026). Get independent advice before resigning ahead of an expected redundancy.
What are the 5 stages of redundancy?
New Zealand law does not define a fixed "five stages"; Employment New Zealand instead sets out a workplace change process an employer must follow, covering identifying the need for change, genuine consultation, redeployment options, notice, and final pay (Employment New Zealand, Redundancy, retrieved 9 September 2026). Our step-by-step first 30 days after redundancy guide covers the practical order from the employee's side.
Can my employer make me redundant without paying anything extra?
Yes, if your employment agreement has no redundancy pay clause: you are still owed proper notice and your normal final pay, but no additional redundancy payment is required by law (Employment New Zealand, Redundancy, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full detail.
Do I need to pay tax on redundancy payments in New Zealand?
Yes. A redundancy payment is taxable income, and your employer should deduct PAYE at the lump sum rate and pay it to Inland Revenue on your behalf (Inland Revenue, Redundancy and income tax, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full rate table and worked examples.
Jobseeker Support and stand-downs
How much is Jobseeker Support in NZ?
Up to $426.12 a week before tax ($372.55 after tax) for a single person aged 25 or over with no children, scaling down for younger claimants and up for couples and sole parents, and reduced further if you or your partner have income above the relevant threshold (Work and Income, Jobseeker Support, retrieved 9 September 2026). See our Jobseeker Support in NZ guide for the full rate tables.
How long is the stand-down before Jobseeker Support starts?
Usually 1 or 2 weeks after your application is approved, based on your average weekly income and number of children, but up to 13 weeks if you resigned voluntarily without good reason or were fired for misconduct (Work and Income, Stand-down periods, retrieved 9 September 2026). This is one of the clearest reasons not to resign ahead of an expected redundancy.
Can I get Jobseeker Support if I quit my job?
Yes, once you meet the age, income and residency tests, but expect a non-entitlement period of up to 13 weeks rather than the standard stand-down if you left without good reason (Work and Income, Stand-down periods, retrieved 9 September 2026). See our Jobseeker Support in NZ guide for the full detail.
How much can I earn and still get Jobseeker Support?
Your combined weekly income before tax must stay under a threshold that varies by circumstance, for example $693 for a single person 25 or over, or $1,066 for a couple with no children (Work and Income, Jobseeker Support, retrieved 9 September 2026). See our Jobseeker Support in NZ guide for the full income limit table.
How long can you be on Jobseeker Support?
There is no fixed maximum, but you must reapply every 26 weeks (6 months) if you still need it, and there are ongoing obligations such as attending a work seminar and meeting an employment plan (Work and Income, Jobseeker Support, retrieved 9 September 2026). See our Jobseeker Support in NZ guide for the full application process.
Your mortgage and existing cover
Can I get a mortgage holiday in NZ?
Yes. ANZ, ASB, BNZ, Westpac and Kiwibank all publish job loss or reduced income as a qualifying reason for financial hardship assistance, though none is obliged to agree, and interest keeps accruing on your loan during any deferral (each bank's own hardship page, retrieved 9 September 2026). See our mortgage holiday in NZ guide for what each bank actually offers.
Does income protection insurance cover redundancy?
Generally not. Most income protection cover in New Zealand is designed to pay out for illness or injury, not job loss, and only a small number of insurers still attach a separate redundancy benefit to another policy, typically capped at six months of payments (our redundancy insurance in NZ guide, retrieved 8 September 2026). Check your specific policy wording rather than assuming either way.
Which company offers the best redundancy insurance in New Zealand?
No standalone redundancy policy is sold in New Zealand; redundancy cover exists only as an option attached to an income protection, mortgage repayment or term policy, and our separate redundancy insurance in NZ guide names the insurers still open to new customers and what each pays (retrieved 8 September 2026).
Is a mortgage holiday a good idea?
It can be, as a genuinely short-term bridge, but the Banking Ombudsman Scheme's own guidance warns a deferral "may not be in your best interests if your finances are unlikely to improve in the short term (three to six months)", since interest keeps accruing while you owe more (Banking Ombudsman Scheme, Hardship and financial difficulty, retrieved 9 September 2026). See our mortgage holiday in NZ guide for what each bank actually offers and how the legal hardship right works.
What happens to my KiwiSaver when I'm made redundant?
Your employer's compulsory contributions stop as soon as your employment ends, though a redundancy payment itself is specifically exempt from KiwiSaver deductions (Inland Revenue, Lump sum payments, retrieved 9 September 2026). Any decision about your KiwiSaver account should be checked directly with your provider or on kiwisaver.govt.nz, since this page gives only the one relevant fact, not KiwiSaver advice.
Does income protection insurance pay out if I'm made redundant?
Only if you specifically hold a redundancy benefit attached to another policy, since most income protection cover in New Zealand is built to pay out for illness or injury, not for losing a job (our redundancy insurance in NZ guide, retrieved 8 September 2026). Check the definitions section of your own policy wording, since "income protection" and "redundancy cover" are not the same thing even when sold by the same insurer.
How much notice do I have to give if I resign?
Whatever your employment agreement specifies, or "reasonable notice" (generally 2 to 4 weeks) if the agreement is silent (Employment New Zealand, Notice periods, retrieved 9 September 2026). See our notice periods in NZ guide for how payment in lieu of notice and garden leave both work as alternatives to working the notice period out.
Snapshot of the maximum weekly Jobseeker Support rate by household type, useful for a fast comparison before you dig into the full tables:
| Household type | Maximum weekly rate, before tax |
|---|---|
| Single, 25 or over, no children | $426.12 |
| Sole parent | $606.69 |
| Couple, no children (total) | $717.50 |
| Couple, with children (total) | $760.48 |
Source: Work and Income, Jobseeker Support, retrieved 9 September 2026. See our Jobseeker Support in NZ guide for every age band and the after-tax figures.
Where insurance fits into a job loss
QuoteHub's read is that the three safety nets after a job loss, redundancy pay, Jobseeker Support, and any existing insurance, each cover a different gap and none of them substitutes for the others, so the honest planning question is not "which one will save me" but "what does each one actually pay, and for how long". Redundancy pay depends on your agreement, Jobseeker Support is a floor income with strict stand-down rules, and income protection or redundancy cover only helps if it was already in place before your job ended.
This hub covers Jobseeker Support, redundancy pay, notice periods, a mortgage holiday and the step-by-step first 30 days. For cover against future income loss, see our income protection insurance guide, income protection calculator, our income protection cost guide, our comparison of income protection insurance, our best income protection insurance in NZ comparison, our income protection tax guide, our page on whether you need income protection insurance, our loss of income insurance page, and our redundancy insurance in NZ guide. For a mortgage specifically, see mortgage repayment insurance, our mortgage protection guide, our mortgage protection calculator, our life insurance for mortgage holders guide and our mortgage protection insurance calculator explainer. If you're about to start a new role, see our insurance when changing jobs guide. Our how to compare insurance quotes in NZ page, methodology and how it works explain how we build the comparisons this cluster links to. If a job loss coincides with wider estate or life planning, our separate estate planning cluster may also be useful.
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
Adviser's view
The mistake QuoteHub sees most in this cluster is treating redundancy pay, Jobseeker Support and existing insurance as interchangeable, when New Zealand sets no legal minimum redundancy payment and each of the three answers a different question: what your agreement promises, what the state pays while you look for work, and what a policy you already held before the job ended actually covers.
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Cite this page QuoteHub NZ (2026). Losing Your Job in NZ: Money, Benefits and Cover (2026). www.quotehub.co.nz/guides/losing-your-job. Updated 2026-09-09.
References
- Employment New Zealand: Redundancy
- Employment New Zealand: Notice periods
- Work and Income: Jobseeker Support
- Work and Income: Stand-down periods
- Inland Revenue: Calculate PAYE for a lump sum payment
- Banking Ombudsman Scheme: Hardship and financial difficulty
Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Claims Support.