NZ Minimum Wage: Increase from $22.70 to $23.15 - 1 Apr 2024

Published 7 February 2024

With April 1st, 2024, just around the corner, it's time for New Zealand businesses to gear up for the latest minimum wage changes. As a manager, leader, or part of the HR team, staying abreast of these adjustments is crucial to ensure compliance and maintain a harmonious work environment. Let's delve into the official details and explore proactive steps you can take to navigate through this transition seamlessly.

Minimum wage changes

• Adult minimum wage: $22.70 to $23.15 per hour.
• Starting-out and training minimum wage: $18.16 to $18.52 per hour.
• All rates are pre-tax and before lawful deductions such as PAYE tax, student loan repayment, and child support.

How to prepare

The looming minimum wage hike may pose challenges for businesses grappling with budget constraints and operational adjustments. Failure to adapt to these changes promptly could lead to financial strain and regulatory non-compliance, tarnishing organisational reputation and employee morale.

The complexity of wage adjustments demands meticulous attention and proactive measures from employers. Neglecting to address these changes could sow seeds of discontent among employees and erode trust within the organisation.

Advise the team

Keep your employees informed about the impending wage increase. Consider sending out letters or emails detailing the adjustments and their implications on their pay.

Check payroll systems

Ensure your payroll systems are primed for the new rates. Collaborate with your payroll provider, accountant, or HR personnel to verify that the necessary adjustments will be smoothly integrated.

Update employment agreements

Review and update employment contracts to reflect the revised wage rates. Engage in transparent discussions with your employees, ensuring mutual agreement on any modifications.

Evaluate Pay Relativity

Assess internal wage structures and benchmark against industry standards. Address any discrepancies or concerns regarding pay equity to foster a fair and motivated workforce.

Revise Budget Forecasts

Factor in the increased wage expenses into your financial projections. Understanding the impact on your budget will facilitate effective planning and resource allocation.

Stay Informed

Familiarise yourself with minimum wage obligations, and exemptions.

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