The Government has confirmed it will compensate kidney donors for loss of income and childcare costs.

Social Development and Employment Minister Steve Maharey and Health Minister Annette King said the initiative, to start from Tuesday, would include payment to donors from overseas.

People who give all or part of a kidney will be paid the equivalent of the sickness benefit - which ranges between $165 to $256 for a single person over 25 - or their pre-operation income, whichever is lower.

The financial support, revealed by the Herald yesterday, will be available for up to 12 weeks from the date of surgery.

"It is not offering a financial incentive but reduces financial barriers to donors," Ms King said.

If the donor experienced new childcare costs because of the operation, they would be eligible for childcare assistance of $3.75 an hour for up to 12 weeks.

Each year in New Zealand organs are taken from about 40 dead people - about 9.9 for every million people.

Last year 51 live donors gave kidneys but about 300 people are on the waiting list.