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Student Loan Scheme Act 2011

Repayment obligations of borrowers - New Zealand-based borrowers' repayment obligations for salary or wages - Salary or wage deductions

38: Employer or PAYE intermediary must make Commissioner deductions from salary or wages

You could also call this:

“Your employer must take extra money from your pay for your student loan if asked”

If you have a student loan, your employer or the person who handles your pay might need to make extra deductions from your wages. This happens if they get a special notice from the Commissioner.

When your employer pays you, they must take out the extra amount stated in the notice. This is on top of the usual deductions they already make for your student loan.

These extra deductions have a special code: ‘SLCIR’. Your employer will keep making these deductions until the Commissioner tells them to stop, or until they’ve taken out the full amount mentioned in the notice.

Your employer must do this as well as any other deductions they normally make for your student loan. They can’t choose one or the other - they have to do both.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3834507.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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37: Deduction rates that apply to standard deductions from salary or wages, or

"How much money your work takes from your pay to help pay back your student loan"

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39: Employer or PAYE intermediary must make borrower deductions from salary or wages, or

"Your boss can take extra money from your pay to help pay off your student loan if you ask them to"

Part 2 Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages: Salary or wage deductions

38Employer or PAYE intermediary must make Commissioner deductions from salary or wages

  1. This section applies if a borrower's employer or PAYE intermediary has received an additional deduction rate notice that has been issued in relation to the borrower under section 49(2).

  2. Each time the employer or PAYE intermediary pays an amount to the borrower that is salary or wages for a pay period, the employer or PAYE intermediary must make a deduction from that amount at the additional deduction rate specified in the notice.

  3. Deductions made in accordance with this section must—

  4. be made in addition to standard deductions and, if applicable, borrower deductions; and
    1. have the repayment code SLCIR applied to them; and
      1. continue to be made until the earlier of the date on which—
        1. the Commissioner notifies the employer or PAYE intermediary otherwise; or
          1. the deductions equal the amount specified in the additional deduction rate notice in accordance with section 49(2)(b).

          2. Nothing in this section limits section 36, 37, or 39.

          Compare
          Notes
          • Section 38(3)(b): amended (with effect on 1 April 2012), on , by section 13 of the Student Loan Scheme Amendment Act 2012 (2012 No 32).