After a horrid first year in action, the Novopay system is slowly improving.

The school payroll system launched on this day last year and since then has underpaid, overpaid, or not paid staff; had numerous bugs in the system; and led to tax and annual leave nightmares for a number of people.

Novopay minister Steven Joyce hopes to have issues around overpayment and tax sorted by the end of next month.

And while he's happy with progress, the woods are not entirely clear.


"What I'm concerned about is to make sure we get over that hump at the end of year and start of year and don't have more problems occur and there's a lot of work going on now to stop that happening, to stop problems occurring, but that's only a special process that occurs once a year."

Labour MP Chris Hipkins says teachers and school staff certainly won't be celebrating, after a full year of muddled pay cheques.

He says 100 staff from 76 schools are still dealing with botch ups caused by Novopay.