A union representing most public servants says the Government should consider utilising another bank following a major pay system glitch by Westpac.
Westpac, which the Government banks with, says it has solved the problem that left some employees of government departments and agencies without salary payments overnight on Tuesday.
The bank says it spent Wednesday morning trying to fix the problem, which meant some salaries and other payments were not transferred to BNZ and ASB banks.
The Public Service Association says it is not good enough and there was a similar problem in April last year.
National secretary Richard Wagstaff says pay should be a fail-safe process and the Government should consider using a different bank.
"The Government should look at the tender it's got ... not just in terms of cost, but in terms of reliability and quality. Another failure today really, I think, adds fuel to that call."
Westpac says it appreciates the severity of the situation and will reverse any fees, charges or interest occurring as a result.
It is not known how many customers have been affected. However, some employees at several public sector organisations including the Ministry of Economic Development, the Ministry of Social Development, Inland Revenue, the police and Radio New Zealand were not paid.