Minimum wage laws have been modified over time to provide equal pay and fairness in the workplace, while aiming to increase the standard of living and reduce poverty. The current minimum wage rates (before tax) are as at 1 April 2020 and apply to employees aged 16 years or over: Employees have to be paid at least the minimum hourly wage rate for every hour worked. Your current employer must pay you the adult minimum wage: The minimum wage rate for starting-out workers is: The minimum wage rate for training workers is: Unless indicated otherwise, all content on Govt.nz is licensed for re-use under a Creative Many of these employees will be apprentices (external link). Anyone who thinks they are being paid less than the minimum wage should contact us. 2021 minimum wage The 2021 minimum wage will be $20 per hour. For someone working 40 hours on minimum wage, the boost means $44 extra in the bank each week. For everything you need to know about COVID-19, go to covid19.govt.nz. There are 3 types of minimum wage — adult, starting-out and training. From 1 April 2020, salaried workers are entitled to the minimum weekly wage of $756 per week for a 40 hour week, plus the minimum hourly wage of $18.90 for each hour thereafter. There are several ways in which employment relationships may be ended, such as resignation, retirement, dismissal or redundancy. exemption permits to employees who have a disability that limits them carrying out the requirements of their work. An accounting company has been ordered to pay $20,000 and its director $13,000 after failing to pay minimum wage and holiday pay entitlements. From 1 April 2021, the minimum wage will rise to $20 - up from $18.90. When you turn 16 you must be paid minimum wage, either adult, starting-out or training. The Minister for Workplace Relations and Safety is required by law to review the minimum wages annually, to take effect 1 April each year. ® Ministry of Business Innovation and Employment, Calculating payments for holidays & leave. The adult minimum wage rate for employees aged 16 years or older: Your employer must pay you at least the minimum wage for every hour you work. Commons 4.0 International Licence, Your browser currently has JavaScript turned off, Minimum Wage Rates 2019. This section provides help in some key areas. Minimum wage exemptions for people with disabilities (external link) — Employment New Zealand. The country's minimum wage is set to soar to $20 within four years under a new coalition deal. The adult minimum wage is $18.90 an hour before tax if you’re 16 years or older. From 1 April 2008, the youth minimum wage was replaced with a minimum wage for new entrants, which applies to some employees aged 16 or 17 years. "The rise in minimum wage is estimated to boost wages by $306 million a year across the economy. $151.20. COVID-19 and the workplace — Employment NZ If you ’ re under 16 there ’ s no minimum wage. Today the adult minimum wage becomes $17.70 per hour, up $1.20 from $16.50. Most countries have a nation-wide minimum wage that all workers must be paid. Employees become entitled to annual holidays, public holidays, sick leave, bereavement leave, parental leave and other types of leave as long as they meet certain conditions. Minimum Wages in New Zealand increased to 18.90 NZD/Hour in 2020 from 17.70 NZD/Hour in 2019. source: Ministry of Business, Innovation and Employment. New Zealand was the first country in the world to establish a Minimum Wage Policy in 1894, although the idea of a minimum wage has been around a lot longer. When you turn 16 you must be paid minimum wage, either adult, starting-out or training. Minimum wage rates (external link) — Employment New Zealand. Minimum wage will increase to $20 per hour on April 1 with the Government following through on its commitment from last term. 16 to 19-year-olds whose employment agreement requires them to do at least 40 credits a year of industry training. The training minimum wage: applies to employees aged 20 years or over whose employment agreement states that they have to do at least 60 credits a year of an industry training programme to become qualified in the area they are working in. The Minimum Wage can be calculated on an hourly, weekly or fortnightly minimum wage rate. The training minimum wage was introduced in June 2003. It’s important for employers to use good hiring processes, and for everyone to follow minimum rights and responsibilities. Currently the minimum wage is $17.70, but this will increase from 1 April . Starting a new job is an exciting and challenging time. Minimum Wages in New Zealand averaged 14.14 NZD/Hour from 2006 until 2020, reaching an all time high of 18.90 NZD/Hour in 2020 and a record low of 10.25 NZD/Hour in 2006. The Government also set indicative rates of $18.90 from 1 April 2020 and to $20 from 1 April 2021. under their employment agreement, have to do at least 60 credits a year of industry training. Here’s what you’ll need to know for your business. This is an increase of $1.20 from the current rate (see the details here). Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016. $18.90. There is no minimum wage for employees under 16 but all the other minimum standards and employment rights and obligations apply. Workplace Relations and Safety Minister Iain Lees-Galloway said the new $18.90 rate will mean an extra $48 a week for those minimum wage earners who work 40 hours a week. This is up from $18.90 per hour. Different types of minimum wage rates has more information on the different types of minimum wage rates: adult, starting-out and training. The Minimum Wage Act 1983 doesn’t apply to: Receive news and updates each month from Employment New Zealand. For example, an employee who works only 2 hours at a time must still get the minimum wage for each of these hours, unless the employee and employer … New Zealand's Minimum Wage is the lowest amount a worker can be legally paid for his work. Agricultural industry (external link) — Employment New Zealand. The Workplace Relations and Safety Minister has announced that the adult minimum wage will be rising to $20.00 per hour from 1 April 2021. There is no minimum hours requirement. Still haven't found what you're looking for? The current (2019) adult minimum wage rates (before tax) that apply for employees aged 16 is: $17.70 per hour, which is $141.60 for an 8-hour day or $708.00 for a 40-hour week. Per hour. COVID-19 and the workplace — Employment NZ. In the same year independent research by the Family Centre Social Policy Unit established the first Living Wage rate for New Zealand, $18.40 per hour. New Zealand's minimum wage rate increased to $18.90 from April 1, 2020. This may have a big impact on your business, particularly considering the current alert level situation in New Zealand. Minimum wage exemption for people with disability has information about exemption permits to employees who have a disability that limits them carrying out the requirements of their work. Currently, the minimum wage is $15.75 and the living wage is $20.20 Minimum wage review, December 2020 [PDF, 1.5 MB] When an employee turns 16, they must be paid the relevant minimum wage (even if they were paid less than the minimum wage when they were 15). The best way to prevent and resolve relationship problems between employers and employees. The current minimum wage rates (before tax) are as at 1 April 2020 and apply to employees aged 16 years or over: Type of minimum wage. The New Zealand minimum wage is NZ$15.25 per hour for workers 18 years old or older,and NZ$12.20 per hour for those aged 16 or 17 or in training. If you’re under 16 there’s no minimum wage. The minimum wage is increasing on 1 April 2021. If you have adult employees earning less than minimum wage, you are legally required to increase their wage rate from 1 April. This adds up to $708 for a 40-hour week. You must enable JavaScript to submit this form. There’ s a lot of concern amongst employers, with the announcement that Government’s increasing the NZ minimum wage to $20 an hour on 1 April 2021. The minimum wage in New Zealand is set to go up to $20 an hour from April. They may be paid at a rate approved by the Minister of Corrections, in relation to travel only, employees who travel between clients are covered by the. The New Zealand government has announced that it will raise the minimum wage to NZ$20 (US$14.27) per hour from April 1 next year, in a bid to support its citizens as the nation recovers from the pandemic. Minimum wage rises by 75c on 1 April 2018 The minimum wage is going up from $15.75 to $16.50 per hour. 8 hour day. 40 hour week. The minimum wage will go up to $16.50 starting April 2018 before rising in steps to $20 by 2021. New Zealand workers on the minimum wage are set for a significant pay rise. All about pay, hours at work, record keeping and what breaks employees are entitled to. The Government has confirmed the minimum wage will increase to $20 an hour from April 1, 2021. “There are many Kiwis who earn the minimum wage that have gone above and beyond in our fight against COVID. Applying for employment relations education course approval, Wage subsidy and Leave Support: Complaints about employers, Calculating payments for holidays and leave, Employer's approach to assuring ethical and sustainable work practices, Franchisor's approach to assuring ethical and sustainable work practices, Recruiters and employment brokers approach to assuring ethical and sustainable work practices, apprentices under: the Maori Housing Amendment Act 1938, the, inmates of any charitable institution (who aren’t living there just because they’re employees) who do any work as inmates, prisoners working while in custody under the Corrections Act 2004. Please note that this content will change over time and may be out of date. It's easy to turn JavaScript on -, New Zealand Government | Te Kawanatanga o Aotearoa, find out how to enable JavaScript in your browser, Your options when you have a problem at work, Creative The adult minimum wage is $18.90 an hour before tax if you’re 16 years or older. The minimum wage will take a step closer to $20 an hour. which means that Govt.nz might not display properly on your device. The boost is expected to lift the incomes of almost 200,000 people. The Government's decision to push ahead with a large minimum wage hike in April flouts bureaucrats' advice to both delay and severely temper the increase. different types of minimum wage rates: adult, starting-out and training. 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Training minimum wage. There are some exceptions to the application of the Minimum Wage Act 1983 and a small number of people with a disability hold an exemption permit from the minimum wage. The starting-out and training hourly minimum wages rates increase from $13.20 to $14.16 per hour – remaining at 80 per cent of the adult minimum wage. This is an increase of $1.10 per hour from the current rate of $18.90 per hour. Minimum wage rates are set by the government and are reviewed each year. New Zealand's minimum wage will rise to $18.90 an hour from April 1, the Government has confirmed. On Wednesday, the Government announced it will raise the minimum wage by $1.20, making it the biggest boost in its history. The Government has confirmed it will raise the minimum wage to $20 per hour from April 1 next year. The minimum wage applies to all hours worked. Commons 4.0 International Licence, after you have worked for them for 6 months, have been paid a benefit for 6 months or more, have been with their current employer for less than 6 months. Job category Median pay Pay range: Accounting $65,000 $48,000 to $125,000: Agriculture, fishing and forestry: $55,000: $40,000 to $95,000 This equates to an extra $48 per week before tax for employees working 40 hours per week on the current minimum wage. 80 hour fortnight. When: 1 April 2018 The youth minimum wage applied to employees aged 16 and 17 years. Labour campaigned ahead of the October election on making this change, further to it being stipulated in its coalition agreement with New Zealand First under the previous government. Clear workplace policies and procedures support employment agreements and mean everyone knows how things are meant to be done. 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