The Defence Force says it has saved $6.1 million since the implementation of a new payroll system in April.
It said the new system was part of an overall package designed to save $8.4 million annually.
Head of human resources for the force, Brigadier Howie Duffy, said the savings were coming from several areas, but had primarily come from a reduction in the number of employees needed to provide human resources services.
"Since the business case was done in 2012 to when the first wave was rolled out this year we've managed to have less people in the HR supporting the New Zealand Defence Force and as a result that's produced the savings."
The Defence Force anticipated a further $2.3 million of savings will be made by September next year.