Six60 formed in Dunedin in 2008, and in 2019 was the first New Zealand act to sell out Western Springs, before becoming the first band to play Eden Park in decades to a sold-out crowd of 50,000 in 2021.
In a statement on social media, Paewai said being a founding member of the band had been "one of the most fulfilling things in my life".
"I am so grateful for my time on stage, the support of the fans, and especially for my time with the boys.
"While my personal journey with music is coming to an end, I will always be a member of Six60. I will be staying on as a member of the Six60 foundation to continue my passion of mentoring and coaching future generations."
Paewai will play two final gigs with the band in Melbourne on 10 February and at Christchurch's Electric Avenue on 24 February.