Allowances

Employees may be eligible for allowances, as specified in their employment agreement. Some allowances automatically renew each year, while others will need to be added.

Use the Start of Year Report to gather the following allowance information for each employee:

  • Do any allowances that are not auto-renewed need to be renewed?
    For a list of auto-renewed allowances, see Start of Year allowance summary.
  • Do they need any new allowances added?
  • Do they need any allowances removed?
  • Do any current allowances need the rate or number of units updated?
    For a list of allowances that do not have a set rate, see Start of year allowance summary.
  • Do any current allowances need to have start and end dates updated?

The start and end dates of an allowance may differ from the employee's job start and end dates. Before making changes to an employee's allowance dates, ensure the job start and end dates have been entered correctly. The allowance dates must fall within the employee's job start and end dates.

Note: You cannot add or update allowances retrospectively in the Start of Year screen. To do so, complete either a NOVO16t form for teachers, or a NOVO2nt form for non-teachers.

Teachers

Use the following table to determine what action to take when changing allowances for teachers.

If Then
If you need to add an allowance, because it is either new or has not been auto-renewed Add the allowance in the Start of Year screen, or submit an application form for an allowance that needs to be applied for (e.g. Tutor Teacher allowance).
If you need to remove an allowance, because it has been auto-renewed and no longer applies Remove the allowance in the Start of Year screen.

The removal of an allowance is effective from the start date entered in the Start of Year screen.
If a set rate allowance is auto-renewed, and you need to change the number of units Remove the current allowance code and add the new one in the Start of Year screen.

For example, if a teacher currently has one permanent unit (UP01), which is to be increased in 2019 to two permanent units (UP02), you would remove UP01 and add UP02.
If you need to change the rate for an allowance that is auto-renewed and does not have a set rate Complete a NOVO16t form.

Note: The employee's start and end dates must be updated before you submit this form.
If you need to update an auto-renewed allowance Complete a NOVO16t form.

Note: You can enter teachers' allowances in the Start of Year screen from 12 December 2018. See Start of Year screen yet to come

Non-teachers

To add, update or remove allowances for non-teachers, use a NOVO2nt form.

Note: The employee's start and end dates must be updated before you submit this form.

For a summary of auto-renewed allowances and allowances that do not have a set rate, see Start of year allowance summary.

Ministry-approved allowances

For Action To Take
For an allowance that requires Ministry approval for an individual Follow standard application processes to apply to the Ministry or Novopay, as you would in any fortnightly pay cycle.
For a school-based allowance You do not need to do anything. The Ministry will notify the Novopay Service Centre, and they will set up or continue the allowances as required.

For a list of allowances that require Ministry approval, see Summary of Ministry approved allowances.