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Update on Variable Funding


Kia ora e te whānau,
This pānui is to help explain the latest update around Pay Parity, specifically your Variable washup amounts. You will have received an email on 11 August 2025 with a breakdown of your kōhanga's specific variable washup amount.
We know this stuff can be a bit technical, so we’ve tried to break it down to make it as clear as possible.
What’s Changing?
From November 2025, the way variable washup amounts are recovered is changing:
If your kōhanga has a Variable Washup amount to be Refunded, this amount will now be kept in the CPS (Central Payroll System) and used to reduce your variable washup amounts going forward.
If your kōhanga has a Variable Washup amount to Pay or any outstanding portion still to Pay, and that amount hasn’t been fully paid back by 1 November 2025, it will be deducted from your November 2025 Kaupapa Funding.
Going forward this will apply to each Kaupapa Funding round.
You’ll find the exact amount for your kōhanga in the email you received on 11 August.
Just a reminder: the usual 5% or agreed variable contribution will still be deducted from your Kaupapa Funding as normal.
What the Variable Portion Covers
These funds help cover things like:
Wages for casual kaimahi
Kaimahi costs that exceed FTE allocated hours
Salary top-ups for kaimahi employed within FTE hours
Approved additional leave (outside of 4 weeks’ annual + 10 days’ sick leave)
Employer KiwiSaver contributions
Reminder: Opting into Fortnightly Pays
There’s still time to opt into fortnightly pays and take advantage of the Smartly fee exemption. Here’s how it works:

Heads up: If your kōhanga hasn’t opted into fortnightly pays by 1 March 2026, your first lot of Smartly fees will be deducted from your March 2026 Kaupapa Funding and cover the period 1 October 2025 – 31 January 2026, this will be the process for each funding period there after.
Need Help?
If you have any pātai or need further assistance, please don’t hesitate to reach out to your Kaiwhakarite-a-Rohe or email: [email protected], or call 0800 KOHANGA (564 2642), then press #4 for Pay Parity.
Ngā mihi nui,
Endorsed by the CE’s Office
Angus Hartley
Tumu Whakarae | Chief Executive Officer
Te Kōhanga Reo National Trust
This pānui is to help explain the latest update around Pay Parity, specifically Variable washup amounts…