Types of pay

There are different ways to be paid when employed. Pay should be set out by the employer in the employment agreement.

There are different types of pay an employee can get, including wages, salary, commission, and piece rates.

Payment of wages/salary

Employees must be paid in money (NZ banknotes and coins) unless:

  • their employer is the Crown or a local authority, then the employer can choose to pay the employee by cheque
  • the employee agrees or asks in writing to be paid by postal order, money order, cheque or bank deposit. If the employee wants to change to be paid in cash, they need to tell their employer in writing. Their employer then has to make the change as soon as possible and within 2 weeks
  • the employee is away from the proper or usual place for the payment of their wages, then they can be paid by postal order, money order or cheque
  • the employment agreement provides some other form of payment.

Employers can’t tell employees how they must spend their money.

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Page last revised: 06 July 2022

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