Sick but can’t afford time off? What to do when your pay stops but life doesn’t

Getting sick hits hard - especially when you don’t have paid leave, or you’ve already used it up. For many Kiwis, it’s not about long-term illness - it’s a few days with the flu, a tamariki home sick, or recovering from surgery. But if you’re a shift worker, a contractor, or on a casual contract, even a short break from work can mean real pressure on the household budget. 

More and more, we’re seeing this in the applications we receive: good people doing their best, but falling behind after just a few unpaid days off. If that’s you - or someone in your whānau, here’s what to do next. 

Debt always takes two sides: lending and borrowing

In New Zealand, there are rules for both - the Responsible Lending Code sets expectations for lenders, while the Responsible Borrowing Code guides borrowers to make informed choices. Getting into debt is rarely one decision, it's usually lots of small ones, stacked up over time. Some of those decisions were yours. We’ve seen applications with hundreds of buy-now-pay-later transactions. That’s not unusual anymore. But at some point, it stops being about what’s happened and becomes about what you do next. 

Understand Your Rights - and Your Options 

As an employee in Aotearoa, you’re entitled to 10 days of paid sick leave per year (after six months in a job). But if you're casual, a contractor, or you’ve used your leave already, that protection may not apply. 

Start here: 

• Check your work contract - It should outline your entitlements. 
• Talk to your manager or HR - Ask what discretionary support might be available. 

If you're not eligible for sick leave, you might still be able to: 

• Take holiday leave in place of sick leave.
• Request unpaid leave, with the chance to catch up hours later.
• Agree on flexible work hours (if your role allows it).

Budgeting for a Sick Week

When income drops, even short-term budgeting matters. Use this time to: 

• Review your spending.
• Trim what you can.
• Even if it’s temporary, a budget reset can stop bigger problems later.  

Reach out early if things get bigger 

If your illness is ongoing, or your income is significantly impacted, support is available: 

• Work and Income - check what financial help you may qualify for. 
• Connect with local community groups or food banks early. 
• Call MoneyTalks on 0800 345 123 for budgeting advice. 

These services may take time to process applications, so don’t wait. Call as soon as you know you need help. 

Talk to your creditors before you fall behind 

Do your own homework about what you can afford. If you’re worried about falling behind on bills or loan repayments, don’t wait - reach out to banks, lenders, or utility providers as soon as possible. Ask about: 

• Payment arrangements - Check to see if your creditors can support you with a temporary repayment plan that helps you avoid falling overdue.  
• Payment holidays - A payment holiday is a period where you temporarily pause or reduce your loan repayments. This can be a helpful option for managing financial hardship, but it's important to understand the potential implications. While you're not making payments, interest typically continues to accrue, increasing your overall debt and potentially leading to higher payments later on. 
• Interest-only period - Interest only periods are generally only offered on mortgage repayments. It's important to understand that only paying the interest portion of your instalment will cause an increase to your overall loan term. 

Don't push through at the cost of your health 

We get it – money stress can make everything worse. But pushing through sickness can lead to bigger health (and money) problems later. Rest when you need to. Ask for help early. Your wellbeing matters. 

Many local organisations offer practical help if illness has interrupted your income: 

• Firstport - Looking for support near you? Firstport makes it easy to find local services and resources. 
• MoneyTalks - Free Budget Advice | 0800 345 123. 
• Work and Income - Financial Assistance. 
• Sorted.org.nz - Income & Budgeting Guides. 
• Citizens Advice Bureau - Employment & Legal Help. Get free advice on employment or tenancy issues. 
• Firstport - Local Community Services.
• Salvation Army - Practical & Emergency Support. The Salvation Army offers practical support and emergency assistance through local centres across New Zealand.
• Groov - Free Mental Wellbeing Tools. Groov offers simple, free tools to help you take care of your mental wellbeing while you navigate job loss and uncertainty.
• Dispute Resolution Support - Community Law NZ. Know your employment and financial rights.

‍Even if it’s just one sick week, don’t wait. Call early, ask questions, and adjust your spending if you need to. You’re doing the right thing by staying on top of it. It’s okay to rest. It’s okay to ask for help. And it’s okay to make short-term changes while you recover. This is just a chapter-not your whole story.