Severance pay in New Zealand 2026: notice, severance and unemployment benefit

When a job ends in New Zealand, the calculator above estimates the statutory severance pay, the notice period, the payment for unused leave and the unemployment benefit, with the tax on each part. Below you will find the rules in brief and examples for different lengths of service.

The rules in brief

Notice and redundancy: The law sets no minimum notice period or redundancy pay: notice follows the employment agreement (4 weeks is common) and redundancy compensation is owed only if the agreement provides it. A dismissal must follow a fair process with a genuine reason. Untaken annual holidays are paid out at 8% of gross earnings or the leave value, whichever is higher.
Jobseeker Support: There is no unemployment insurance. Work and Income pays Jobseeker Support, a flat weekly benefit of $426.12 before tax for a single person aged 25 or over from 1 April 2026 ($606.69 for a sole parent), reduced by your and your partner’s other income and subject to work obligations.

Example: NZ$6,500 gross a month

Years of service	Severance, net	Notice period
1	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
2	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
3	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
5	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
10	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
15	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
20	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)
25	–	As set in your employment agreement (often 4 weeks; “reasonable notice” if none)

There is no statutory severance pay in New Zealand in this case, so the table shows the notice period only. Case: “Made redundant or dismissed”, leaving on 31 December 2026, without unused leave. These are legal minimums; a contract or collective agreement may give more.

What you receive: an example

With 9.8 years of service and 10 days of unused leave, ending on 31 December 2026:

Item	Gross (NZ$)	Net (NZ$)
Unused leave (5 days)	1,500.00	930.75
Total	1,500.00	930.75

Unemployment benefit

In this example the unemployment benefit comes to about NZ$11,079 in total (Jobseeker Support of NZ$426 a week before tax (single, 25 or over), paid as long as you qualify and reapplied for every 52 weeks; it is reduced by your partner’s income and starts after a stand-down of up to 2 weeks. Shown here for 26 weeks.). The conditions, such as the contributions you need, are listed in the rules above.

Frequently asked questions

How much severance do I get after 10 years in New Zealand?

None by law in this case. The notice period is As set in your employment agreement (often 4 weeks; “reasonable notice” if none).

How long is the notice period?

In the example: As set in your employment agreement (often 4 weeks; “reasonable notice” if none), whatever the length of service. A contract can require more.

Do I get unemployment benefit?

In the example, about NZ$11,079 (Jobseeker Support of NZ$426 a week before tax (single, 25 or over), paid as long as you qualify and reapplied for every 52 weeks; it is reduced by your partner’s income and starts after a stand-down of up to 2 weeks. Shown here for 26 weeks.). The conditions are listed in the rules above.

Are these amounts exact?

They are estimates of the legal minimum under the 2026 rules. Your contract, a collective agreement or a court decision can give more.

Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.

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