Most NZ university students work part-time — 10–20 hours per week is common, and employers are generally well set up to accommodate student schedules. Getting your tax and KiwiSaver settings right from the start avoids end-of-year surprises.
Use tax code "M" for your primary/only job (or "M SL" if you have a student loan). At 18 or over, starting a new job usually means automatic enrolment in KiwiSaver if you're eligible (not already a member, and in a full-time or permanent part-time job or on a contract of more than 28 days); you can opt out from day 14 to day 56, but then you don't get the employer contribution. Realistically expect $23.95–$28/hour in most student roles (retail, hospitality, admin), since $23.95/hour is the current adult minimum wage. A 10-hour week yields approximately $240–$280 gross before tax.
Your Tax Code as a Student
When starting a job, your employer gives you a tax code declaration (IR330). The right code depends on your situation:
| Situation | Tax Code |
|---|---|
| This is your only job (no student loan) | M |
| Only job + you have a student loan | M SL |
| Second/part-time job while employed elsewhere | SB (secondary) |
| Student Allowance + part-time work | Part-time work uses M; allowance uses its own deduction |
Using the wrong tax code means you either overpay tax (refunded at year end) or underpay (bill at year end). The “M” code is correct for most students with one employer.
KiwiSaver Auto-Enrolment
Once you’re 18, your employer automatically enrolls you in KiwiSaver when you start a new job if you’re eligible: aged 18 to 65, not already a member, and in a full-time or permanent part-time job or on a contract of more than 28 days (citizens and people entitled to live in NZ indefinitely only; you can’t join on a student visa). This means:
- 3.5% of your gross pay (the default minimum from 1 April 2026, up from 3%) is deducted and contributed to your KiwiSaver fund (unless you choose 4%, 6%, 8% or 10%)
- Your employer contributes a minimum of 3.5% while you contribute
- After day 56, you can opt out only in limited situations (Inland Revenue may accept a late opt-out up to 3 months after it gets your first contribution)
Should you opt out?
That’s your decision. Staying in means the employer contribution: on a $300/week gross wage, a 3.5% employer contribution is $10.50/week, or $546/year (before ESCT). Your own contribution at the same rate reduces your take-home by the same amount and is locked in until 65 or a first home, with limited exceptions. Opting out stops both.
Student Loan Deductions from Wages
If you have a student loan, use tax code M SL. This triggers automatic weekly deductions at 12% on income above the threshold ($24,128/year = $464/week).
At typical student working hours (10–20 hours/week, $24/hr), your annual income from work is:
- 10 hrs/week: ~$12,480/year — below the threshold, no student loan deductions
- 15 hrs/week: ~$18,720/year — still below threshold
- 20 hrs/week: ~$24,960/year — just above threshold; ~$100/year in deductions
Most students working 20 hours/week or less will not have student loan deductions triggered from part-time work alone — but check annually if hours or pay rate increase.
Realistic Earning Expectations
| Job Type | Typical Hourly Rate | Notes |
|---|---|---|
| Retail (supermarket, clothing, etc.) | $23.95–$28 | Most common student role; often flexible rostering |
| Hospitality (café, restaurant) | $23.95–$27 + tips | Weekend and evening premium in some roles |
| Tutoring (peer/private) | $25–$60 | Requires subject knowledge; flexible |
| Library or admin (university) | $23.95–$28 | University employers; often student-friendly scheduling |
| IT support / help desk | $25–$35 | For students with relevant skills |
| Casual labouring / events | $23.95–$30 | Variable hours; physically demanding |
Weekly Income at Typical Hours
| Hours/Week | $23.95/hr (gross) | $26/hr (gross) | Est. Take-Home (M code) |
|---|---|---|---|
| 10 hours | $240 | $260 | ~$210–$225 |
| 15 hours | $359 | $390 | ~$315–$340 |
| 20 hours | $479 | $520 | ~$420–$455 |
Take-home estimates assume standard M tax code deductions, no student loan deduction (income below threshold).
Balancing Work and Study
Research consistently shows that up to 15 hours/week of part-time work has minimal impact on academic performance for most students. Beyond 20 hours/week, academic performance tends to decline.
Practical guidance:
- Semester time: 10–15 hours/week is ideal
- Exam periods: Reduce to 5–10 hours or take planned study leave
- Semester breaks and summer: Increase to 25–40 hours; build savings and holiday pay
Communicate your study schedule to your employer from the start — most retail and hospitality managers in NZ are accustomed to accommodating student schedules.
Holiday Pay and Your Rights
As a permanent or fixed-term employee (even part-time), you are entitled to:
- 4 weeks’ annual leave per year (pro-rated if less than 12 months)
- 8% holiday pay on any casual/irregular hours worked (often paid as you go for truly casual workers)
- 10 days’ sick leave per year (after 6 months’ employment)
- Public holiday entitlements
Your employer cannot avoid these entitlements by calling you “casual” unless the employment relationship is genuinely casual (no guaranteed hours, no regular work pattern).
Frequently Asked Questions
What happens to my Student Allowance if I earn too much?
Student Allowance abates once your weekly earnings exceed $284.70/week (before tax) — above this threshold, your allowance reduces dollar for dollar. Report income changes to StudyLink within 5 days — see the Student Allowance guide for full abatement details.
Do I need to file a tax return?
If you have only one employer and the correct tax code, IRD handles your tax automatically. You may receive a tax refund via automatic assessment. You do not need to file an IR3 unless you have additional income sources (freelancing, investment income, overseas income).
Should I contribute to KiwiSaver as a student?
It’s your choice. As an employee you contribute at least 3.5% of pay, and your employer contributes while you do. The government contribution (25 cents per dollar you contribute, up to a maximum of $260.72/year, halved from the previous $521.43 from 1 July 2025) also applies once you’re contributing, provided you’re aged 16 to 65, live mainly in New Zealand and have taxable income of $180,000 or less.