Letter template: Annual wage & tax changes

Keeping up with annual wage and tax adjustments is a standard part of running a business in New Zealand. The government frequently updates minimum wage rates and tax rules, which often take effect on 1 April. Staying informed helps you manage your payroll accurately and supports your team through financial transitions. 

The importance of clear communication

Whenever financial changes occur, clear communication is essential. As part of acting as a good faith employer, it’s helpful to inform your employees about how their paychecks might look different. Talking to your team early prevents confusion, reduces payroll queries and builds trust across your organisation.

It’s also critically important to record any updates to their salary or wages in writing. Documenting these adjustments helps you meet your legal responsibilities and maintains the accuracy of your internal records. Providing a formal letter is a simple way to meet your record-keeping obligations while keeping your team in the loop.

Simplify your admin with our free template

To make this process easier, we’ve created a straightforward letter template specifically for New Zealand employers. You can use this document to quickly notify your staff about new pay rates, KiwiSaver changes or tax updates without drafting a message from scratch.

The template is designed for easy copying and customising. You simply fill in the bracketed information to suit your specific business needs and employee details.

The information in this article is current as at 5 March 2026, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.