NZ Minimum Wage Increase 2025: What is the Possible Minimum Wage Increase in 2025? We will discuss in this Article: The Workplace Relations and Safety Minister has announced that the adult minimum wage will rise to $23.50 per hour from 1 April 2025. This is an increase of 35 cents per hour from the current hourly rate of $23.25.
The training and starting minimum wages will also increase to $18.80 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $18.52 per hour.
NZ Minimum Wage Increase 2025
The adult minimum wage rate will increase by 1.5% to $23.50 an hour from 1 April 2025. This increase also reflects the significant progress the government has now made on inflation, which has now returned to the Reserve Bank target band for the first time in more than three years. For an employee who works 40 hours a week, the minimum wage increase to $23.50 per hour means they will earn an extra $14 each week before tax.
Around 141,900 New Zealand workers who are currently earning between the current and new minimum wage rates should get an increase in their pay packets as a result of the change in the minimum wage.
What is the Possible Minimum Wage Increase in 2025?
The possible Minimum Wage is increasing on 1 April 2025. The details of the increase are:
- Adult minimum wage will go up from $23.25 to $23.50 per hour.
- Starting and training minimum wage will go up from $18.52 to $18.80 per hour.
- All rates are before tax and lawful deductions, for example, PAYEtax, student loan repayment, and child support.
If you have not yet talked to your accountant, payroll provider or your finance? HR teams now is the the time. It is also an opportunity to check your employment records, processes and system are current.
Minimum Wage Exemptions for disabled people
If you employ a person with a disability that significantly limits them in the job, an application can be made to the labour inspectorate for a minimum wage exemption permit. Permits will only be granted if they are reasonable, the employee agrees and you have done all you can to help the employee do all parts of their job.
How to prepare for the increase
1. Advise the team
If you have employees on the minimum wage, let them know about the increase they will be getting. you should send them a letter or email( variation of employment contract)( advising them of the new wage.
2. Check your payroll system and processes
Make sure your payroll provider, accountant, lawyer, HR, or finance people are ready to implement the change. If your system is manual or computer-based, you should check and confirm the settings will be adjusted for the new rates.
If any of your employees are on starting or training wages, now is a good time to check when they will be eligible to move onto the adult rate.
3. Employee pay relativity
You may also wish to consider the potential impact on your business due to internal wage relativity and external benchmarking. for example, how employees are paid compared to each other, and how your pay rates compare to others in your industry or sector. Employees on higher wages may want to negotiate a pay increase to keep the relative difference.
4. Update your business budget
You should add any expected increased costs to your short and medium-term budget forecasts. This will help you plan for and manage the effect of higher wage and holiday pay liabilities.
5. Upskill on minimum wage obligations
- It applies to all hours worked, and both parties agree to a higher rate in the employment agreement
- It applies to those employees who are paid with a salary piece rates or commission.
The minimum wage does not apply in some situations including:
- The employees who are under 16 years of age
- Where a labour inspector has issued a minimum wage exemption permit to an employee who has advisability that limits them from carrying out their work.
Conclusion
In this article, we discussed the NZ Minimum Wage Increase 2025. The adult minimum wage rate will increase by 1.5% to $23.50 an hour from 1 April 2025, workplace relation and Safety Minister Brooke van Velden announced. This increase also reflects the progress the government has made on inflation, which has now returned to the Reserve Bank`s target band for the first time in more than three years. The starting and training minimum wage rates will be set at $18.80, to remain at 80% of the adult minimum wage.
FAQs
1. What is the minimum age to work in New Zealand?
Ans. At what age can I start working? you can start working at any age. There is no minimum age to start working but there are some limitations on when what and how you work if you are of a certain age. These are to ensure your safety and that you can fully participate in school.
2. How many hours is full-time in NZ?
Ans. Unless otherwise specified fill time employment is considered to be at least 30 hours of work per week for all work policies.
3. What is the minimum wage in Canada 2025?
The government has raised the federal minimum wage every year since 2021: April 1, 2025- 17.70 per hour April 1, 2025- $17.30 per hour. April 1. 2025 $16.65 per hour.