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Changes to Minimum Wage - what you need to know

The 1st April not only brings a new financial year for most businesses, it is also the date that the new minimum wage comes into effect.

Adult rates (16 years and over) minimum rates will be increased by $1.20 to $17.70 per hour

‘Starting-out’ & ‘Training’ minimum rates will be increased to $14.16 per hour (currently it’s $13.20).


All employees must be paid at least the minimum hourly wage rate ”for every hour worked” including salaried workers. So what does that mean for you?


If you have a staff member who is on a salary for a 40 hour working week of close to $37,000 per annum then you need to be conscious that they don't exceed their working hours as that would bring them below the minimum wage. Even if your staff member is happy working the extra hours, or in fact does them by choice, you can still be liable for some hefty fines under the minimum wage act.


The other area to be aware of is that if you pay "total remuneration" under kiwisaver ie your contributions are part of the employee salary, you must ensure that when you take away the employers contribution of the salary then the employee is still receiving at least the minimum wage for every hour worked.


Any questions please get in touch - we are happy to help



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