Employers are required to deduct student loan repayments through the PAYE system when an employee completes a Tax code declaration (IR 330) using one of these codes: M SL, ME SL, S SL, SH SL, SB SL or ST SL.
Employees with student loans who only have one main job should use the M SL or ME SL tax code.
This code includes student loan deductions which are set at 12 cents in the dollar for every dollar earned over the repayment threshold:
| Threshold period | Threshold 1 Apr 2018 to 31 Mar 2019 | Threshold 1 Apr 2019 to 31 Mar 2020 | Increase |
| Annual | $19,448.00 | $19,760.00 | $312.00 |
| Weekly | $374.00 | $380.00 | $6.00 |
| Fortnightly | $748.00 | $760.00 | $12.00 |
| Four weekly | $1,496.00 | $1,520.00 | $24.00 |
| Monthly | $1,620.66 | $1,647.00 | $26.00 |
Employers also need to deduct student loan repayments at this rate from redundancy and lump sum payments.