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New Zealand Minimum Wage Increase
01/04/2025The adult minimum wage has increased from $23.15 to $23.50 per hour, effective 1 April 2025. If you employ employees who are being paid at or near the minimum wage, it will be necessary to review their remuneration and make the required adjustments. Any necessary remuneration adjustments should be backdated to 1 April 2025.
The starting out and training wages have also increased.
What does this mean for employers?
Employers should use this increase as a trigger to ‘check in’ more generally on their compliance with minimum wage requirements. This includes:
• That all employees who are paid the minimum wage are being paid for all hours they work – including preparatory activities before they start work (like a pre-start meeting) and on the job training.
• That salaried employees are receiving above the minimum wage each fortnight or week – this can be an issue where salaried employees are paid only slightly above the minimum wage (which is now an extra $14 per week before tax) and work additional hours in a week or fortnight.
By Quigg Partners, New Zealand, a Transatlantic Law International Affiliated Firm.
For further information or for any assistance please contact newzealand@transatlanticlaw.com
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