Organ donors will receive full compensation for earnings lost while they recuperate, under a bill that has been passed by parliament.
National MP Chris Bishop's member's bill passed its third and final reading unanimously on Wednesday.
Until now, organ donors have been paid the sickness benefit while recuperating, which can take several weeks.
That worked out at between $140 and $350 a week, depending on their circumstances.
"My bill will mean that live organ donors receive compensation of 100 per cent of their earnings for up to 12 weeks after the operation," Mr Bishop said.
"Live organ donors are heroes, but the status quo is manifestly unfair."
During the third reading debate, Mr Bishop told parliament loss of income was a significant barrier to people becoming organ donors.
"More than 500 New Zealanders are waiting for an organ transplant, and about 450 of those are waiting for a kidney transplant," he said.
"People waiting for a heart, lung or liver may die without a successful transplant, while those waiting for a kidney transplant lead lives restricted by long-term dialysis treatment."