News and Publications

ADULT MINIMUM WAGE
The Government announced earlier this week that the adult minimum wage will increase from $13.75 an hour to $14.25 an hour from 1 April this year. This will take the adult minimum wage rates (before tax) to $114.00 for an 8-hour day and $570.00 for a 40-hour week.

It was expected there would be an increase of 25 cents so the 50 cents (3.6 %) rise has exceeded expectations.

Labour Minister Simon Bridges has said that the increase “represents a careful balance between protecting low paid workers and ensuring jobs are not lost.”

Who does the adult wage apply to?
The adult minimum wage applies to all employees aged 16 years and over who are not starting-out workers or trainees, and all employees who are involved in supervising or training other employees.

STARTING-OUT AND TRAINING MINIMUM WAGE
The starting-out and training minimum wage will increase from $11.00 an hour to $11.40 an hour from 1 April this year (80% of the adult minimum wage).

Who does the starting-out and training wage apply to?
The starting-out wage applies to all starting-out workers. They are:

16 and 17 year old employees who haven’t completed six months of continuous employment with their current employer;
18 and 19 year old employees who have been paid a specified social security benefit for six months or more, and who haven’t completed six months continuous employment with any employer since they started being paid a benefit. Once they have completed six months continuous employment with a single employer, they will no longer be a starting-out worker, and must be paid at least the adult minimum wage rate; and
16 to 19 year old employees who are required by their employment agreement to undertake industry training for at least 40 credits a year in order to become qualified.

The training minimum wage applies to all employees aged 20 years or over who are undertaking recognised industry training involving at least 60 credits a year as part of their employment agreement, in order to become qualified.

WE CAN HELP:
If you have any questions regarding the requirements of the upcoming minimum wage increase please do not hesitate to call us on the numbers listed below. We are more than happy to field any questions you may have and help ensure you are fully compliant with your legal obligations as an employer.