New Minimum Wage Rates

Published 27 March 2026 | 3 min read

From 1 April 2026

Adult minimum wage: increases from NZD$23.50 to NZD$23.95 per hour
Starting-out and training minimum wage: increases from NZD$18.80 to NZD$19.16 per hour.
All rates are before tax and before any lawful deductions (such as PAYE, student loan repayments, or child support).

If you have not yet spoken with your accountant, payroll provider, or finance/HR team, it’s a good idea to do this now. You can also take this opportunity to check that your employment records, processes, and systems are up to date.

Learn more about types of wage rates and exemptions: Minimum wage | Employment New Zealand

How to prepare for the increase

1. Let your employees know

If any of your employees are on the minimum wage or are paid between the old and new minimum wage rate, let them know what their new pay rate will be. You should send them a letter or email confirming the change (this is a variation to their employment agreement).

Their pay will need to increase to at least the new minimum wage, and you may choose to adjust it further to maintain pay relativity within your team.

2. Check your payroll systems and processes

Make sure your payroll provider, accountant, lawyer, finance, or HR teams are ready to implement the new wage rates.

If your payroll system is manual or computer based, check that your settings will be updated correctly.

If any employees are on starting-out or training wages, this is also a good time to check whether they are due to move to the adult minimum wage.

If any employment agreements are out of date, or if you have employees who do not have a written agreement, it is important to update these now. Make sure the agreement includes all required clauses under the law. You can use the Employment Agreement Builder if you need help.

Creating an employment agreement | Employment New Zealand

3. Consider pay relativity

Think about whether the minimum wage increase will affect wage relativity in your workplace. Employees on higher rates may want to discuss changes to maintain pay differences within teams or compared with other employers in your industry.

4. Update your business budget

Review your short- and medium-term budget forecasts and include the increased wage and leave related costs. This will help you plan for any financial impact on your business.

5. Refresh your knowledge of minimum wage obligations

Now is a good time to check that you understand how the minimum wage applies. For example:

• minimum wage applies to all hours worked, unless a higher rate is agreed in the employment agreement
• it applies to employees paid by salary, piece rates, or commission.

The minimum wage does not apply to:

• employees under 16 years of age
• employees with a disability who hold a minimum wage exemption permit issued by a Labour Inspector.