Cashing up your annual leave

Did you know that you can get up to a week of your annual leave paid out in cash?

That’s right - of your four weeks’ minimum entitlement to annual leave every year, you can request for up to one week of this to be paid out to you in cash!

Here’s what you need to know:

• You need to have worked for your employer for at least 12 months

• You need to request your annual leave cash-up in writing

• You can request for up to one week of annual leave to be cashed up all at once, or make multiple requests throughout the entitlement year

• Your employer can say no, without providing a reason.

Annual leave holidays are paid at the rate of the greater of ordinary weekly pay and average weekly earnings. That means that one week of your annual leave could be approximately the following amounts, assuming you have a 3% Kiwisaver contribution rate and student loan repayments:

$645.24 on a $45,000 salary

$748.06 on a $55,000 salary

$851.15 on a $65,000 salary

$951.36 on a $75,000 salary

$1,048.70 on a $85,000 salary

$1,146.02 on a $95,000 salary

So if you haven’t got many plans this year - perhaps COVID has cancelled your summer getaway across the ditch - why not consider cashing up some of your annual leave? Whether you are saving for something special or paying off debt, that extra cash could make a big difference and help you reach your money goals faster.

Check out more information on cashing up annual leave from Employment New Zealand here.

Take care and stay safe!

Sophia