The minimum wage is applicable to all employees who are 16 years old and above. However, different rates may apply if the employee is 16 or 17 years old and new to the workforce or undergoing training.
As an employer, it’s crucial to stay informed about the latest minimum wage rates and ensure that your employees are paid at least the current minimum rate. This requirement applies regardless of whether your employee works only a few hours a week or has minimal responsibilities at work.
The three types of minimum wage rates are:
- Adult minimum wage
- Starting-out wage
- Training minimum wage
Pay and wages — Employment New Zealand
Minimum wage increased on 1 April 2024.
The increases are as follows:
- The adult minimum wage has increased from $22.70 to $23.15 per hour.
- The starting-out and training minimum wage has increased from $18.16 to $18.52 per hour.
- All rates are before tax and any lawful deductions, such as PAYE tax, student loan repayment, and child support.
Current minimum wage rates
Adult Minimum Wage
The adult minimum wage applies to all employees aged 16 years and over who are not starting-out workers or trainees. It also covers all employees who supervise or train other employees.
This is the most commonly used minimum wage among businesses of all types and sizes in New Zealand.
Starting-out wage
The starting-out wage applies exclusively to workers aged 16 to 19 who are entering the workforce for the first time.
Starting-out workers include:
- Those aged 16 to 17 years who have worked for you for less than six months.
- Those aged 18-19 who have been on a specified social security benefit for six months or more and have not completed six months of continuous employment must be paid the adult minimum wage rate after six months of continuous employment with a single employer.
- Those aged 16 to 19 years are required by their employment agreement to undertake industry training for at least 40 credits a year to become qualified.
Training Minimum Wage
The training minimum wage applies to employees aged 20 years or over who are completing recognized industry training involving at least 60 credits to become qualified.
Employing School-Age Workers
There is no minimum wage for employees under 16 years of age. If you employ under-16s, you must ensure their work does not interfere with their school attendance.
Exemptions
A small number of people hold exemptions from the minimum wage, such as prison inmates and some apprentices. For full details, please refer to the provided links.
Minimum wage rates — Employment New Zealand
Minimum wage exemptions for people with disabilities — Employment New Zealand
Agricultural industry— Employment New Zealand
If you’re unsure about how much you should be paying your employees or suspect that you might be paying too little, contact Employment New Zealand for advice.
Email us a query— Employment New Zealand
Paying fairly
In addition to meeting or exceeding the legal minimum wage, it’s essential to ensure that your pay policies and practices are equitable.
It’s crucial to note that hourly employees must be compensated for all hours worked. This includes paying them at least the minimum hourly wage for any overtime hours worked.
Ensuring fair pay for employees also entails:
- Providing equal pay rates to women and men for performing the same or substantially similar work.
- Prohibiting discrimination based on factors such as colour, race, ethnic or national origin, gender (including pregnancy or childbirth status), marital or family status, age, disability, religious or ethical beliefs, political opinion, sexual orientation, or union activity.
Case study: Fair pay for a longer day
Jill, who owns a bustling urban florist, employs two full-time staff. Her store closes at 6 pm daily, but her employees stay until around 6:20 pm to close the shop, count the cash register, and prepare for the next day.
To compensate for this additional time beyond their standard eight-hour workday, Jill pays her staff for an extra 20 minutes each day.
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