• By timehub
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  • 21 Feb 2018
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Minimum wage rises - April 1st

On April 1st the New Zealand Minimum Wage rate increase by $0.75 per hour.

This is the largest increase in many years and there are some business sectors which claim this will have a negative impact on employment. The other side of this arguement is that the minimum wage is too low and someone couldn't live on this rate. 

I can see both sides of this situation and at the end of the day, the business has to do what works for them and their staff. The key thing is making sure you are meeting your legal obligations to pay the minimum wage. 

Don't leave it until the last minute to update your payroll if it doesn't automatically handle it for you.

Here are the new rates:

Minimum wage rises

 When: 1 April 2018

What: The new minimum wage rates are:

  • Adult — $16.50 an hour

  • Starting-out — $13.20 an hour (up from $12.60)

  • Training — $13.20 an hour (up from $12.60)

Starting-out and training minimum wages are 80% of the adult minimum wage. Read our page on minimum pay rules for a summary of who can earn the different rates.

Why: Government must by law review the minimum wage rates every year.

What you’ll need to do: You and your staff can agree to any wage above the minimum rate. If your employment agreements are a few years old, you can use this as a chance to update them. Note that it is a legal requirement to have a written employment agreement with all your staff.

Minimum pay rules

The minimum wage applies to all paid employees aged 16 and older, although there are different rates if your employee is 16 or 17 and is new to the workforce or if they are completing training. 

Follow this link for full details on the rules around Minimum Pay