He said Talent2, the company behind Novopay, had undertaken its third software release as part of the Novopay remediation plan.
A total of 123 bugs were resolved in this release including nine very serious bugs and 88 serious bugs.
Despite ongoing bugs in the system the number of mistakes with the plagued Novopay school payroll system have dropped, according to the latest PwC data.
In the previous pay cycle, 1600 school staff were overpaid.
In the second pay cycle of the new financial year, 391 staff from 264 schools were either not paid, underpaid or overpaid.
That amounted to only 0.44 per cent of staff across New Zealand public schools.
Mr Joyce said this was an encouraging result.
"It's one of the better performances we have seen since PwC began tracking complaints for each Novopay pay period in February.
Previous pay periods:
* pay period 1 - pay complaints received from 2.14 per cent of staff and 386 schools.
* Pay period 26 - pay complaints received from 0.43 per cent of staff and 232 schools.
* Pay period 25 - pay complaints received from 1 per cent of staff and 406 schools.
* Pay period 24 - pay complaints received from 1.9 per cent of staff and 447 schools.
* Pay period 23 - pay complaints received from 2.2 per cent of staff and 628 schools.