Student Loan On Primary Vs Secondary Pay
Student loan repayments work differently on your main pay and your secondary pay. On your main job the repayment threshold protects the first slice of income, so you only repay 12% on what you earn above it. On a secondary job there is no threshold, so you repay 12% from the first dollar.
This guide covers the threshold versus first dollar split, the numbers Inland Revenue uses, and the fix when your main job is small. It is for a nurse with a weekend job, a student with two part time roles, and anyone who sees a big student loan line on their smaller payslip.
Primary vs secondary: the one difference that matters
When you have a student loan and earn a salary or wage, you add SL to your tax code so your employer deducts repayments. The repayment rate is the same on both jobs. What changes is the repayment threshold: your main job gets it, your secondary job does not. That single rule is why a small second job can show a student loan deduction that feels high.
Main job (M SL or ME SL)
Threshold applies. Inland Revenue: you repay 12% of every dollar you earn over the pay period repayment threshold. The first part of your pay, up to the threshold, has no student loan taken from it on this job.
Secondary job (SB SL, S SL, SH SL, ST SL, SA SL)
No threshold. Inland Revenue: the threshold does not apply because it has already been taken into account with your main job, so you repay 12% of every dollar from the first dollar on this job.
Source: Inland Revenue repaying my student loan when I earn salary or wages. Which secondary letter (SB, S, SH, ST, SA) sits with SL is the secondary tax code guide. Employer payday filing and wage records sit on the PAYE and payslips hub. Inland Revenue's Payroll Calculations and Business Rules Specification 2026 states the same split: primary income 12% per dollar over the threshold, secondary income 12%.
The student loan repayment threshold
The repayment rate is 12% of every dollar you earn over the repayment threshold. For the 2026 tax year Inland Revenue sets the annual repayment threshold at $24,128, then breaks it into pay period thresholds that payroll uses each pay.
| Pay frequency | Pay period repayment threshold | Applies to |
|---|---|---|
| Weekly | $464 | Main job only (M SL or ME SL) |
| Fortnightly | $928 | Main job only |
| Every 4 weeks | $1,856 | Main job only |
| Monthly | $2,010.66 | Main job only |
| Secondary job | No threshold | 12% from the first dollar |
Source: Inland Revenue repaying my student loan when I earn salary or wages (annual threshold $24,128, last updated 27 November 2025). The annual figure is the 2026 tax year threshold Inland Revenue publishes. Dollar checks over the life of the loan can use the student loan repayment calculator.
The numbers side by side
Inland Revenue gives a worked example for each case. The same person, same 12% rate, two very different deductions because of the threshold.
$600 minus $464 (weekly threshold) = $136 over the threshold.
$136 × 12% = $16.32 student loan
Secondary job, $200 a week:
No threshold on this job. $200 × 12% = $24 student loan
The secondary job pays a third of the weekly amount but takes a larger student loan deduction, because every dollar counts. This is not a penalty. Inland Revenue applies the threshold once, through your main job, so your total repayment lines up with 12% of income over $24,128 across the year.
The fix when your main job is small
Inland Revenue: if you have more than 1 job and you earn less than the pay period repayment threshold from your main job, and you use the SB SL or S SL tax code for your secondary job, you can apply in myIR for a student loan special deduction rate. This lets the unused part of your main job threshold be used against your secondary income, reducing the deduction. The rate is valid until the end of the current quarter, so apply again each quarter. You will need an estimate of total earnings from both jobs and how often you are paid.
What people get stuck on
On r/newzealand and r/PersonalFinanceNZ the recurring confusion is thinking the $24,128 threshold applies to each job separately. It does not: your repayment obligation is on total income, and PAYE only gives the threshold once, on the main job. A holiday job is a different case. Inland Revenue: if you earn over the pay period threshold but less than the annual threshold, a student loan repayment deduction exemption may suit. If a main benefit from MSD is your primary income, MSD does not deduct student loan from the benefit, so use M and look at a special deduction rate for the other job. Student loan deductions go towards your loan balance, and Inland Revenue squares the obligation on your income tax assessment after 31 March.
Other income is a separate path
If you earn income that is not salary or wages, such as contracting or trust income, that is adjusted net income, not secondary pay. Inland Revenue: you repay 12% of every dollar over the annual repayment threshold, and you have an end of year repayment obligation if your adjusted net income is $500 or more and, with your salary and wage income, is over the annual threshold. That path runs through your income tax return, not a payslip. Dollar take home on a chosen tax code sits on the PAYE calculator, which shows the student loan line when an SL code is selected.
Frequently asked questions
Do I pay student loan on a second job from the first dollar?
Yes. Inland Revenue: the repayment threshold does not apply to secondary jobs because it has already been taken into account with your main job, so you repay 12% of every dollar you earn from your secondary job. Example: $200 a week before tax times 12% equals $24.
What is the student loan repayment threshold?
For the 2026 tax year Inland Revenue sets the annual repayment threshold at $24,128. The pay period thresholds are $464 weekly, $928 fortnightly, $1,856 every 4 weeks, and $2,010.66 monthly. On your main job (M SL or ME SL) you repay 12% only on income over the pay period threshold.
My main job is under the threshold. Can I stop over deducting on my second job?
Yes. Inland Revenue: if you earn less than the pay period threshold from your main job and use the SB SL or S SL tax code for your secondary job, apply in myIR for a student loan special deduction rate. This lets the unused threshold be used against your secondary income. It is valid until the end of the current quarter, so reapply each quarter.
Are student loan deductions based on total income or each job?
Your repayment obligation is based on total income, not each job on its own. PAYE gives the pay period threshold to your main job and takes 12% from the first dollar of a secondary job. Inland Revenue squares the obligation against your total income after 31 March. Deductions go towards your loan balance.