What is minimum wage?
Minimum wage is the lowest wage that an organisation can legally pay their employees per hour.
What is minimum wage in New Zealand?
As per the Minimum Wage Act 1983, New Zealand undergoes an annual review of the minimum wage annually. This is completed by the Minister for Workplace Relations and Safety. The wage has increased year on year, since 2000 for each type of minimum pay including adults, new entrants and trainees.
As of April 2024, the following minimum wage rates apply to workers aged 16 years or over:
1) Adult Minimum Wage – $23.15 Per Hour. This is the standard rate for adults.
2) Starting-Out Minimum Wage – $18.52 Per Hour. This applies to employees aged 16-19 entering the workforce for the first time.
3) Training Minimum Wage – $18.52 Per Hour. This applies to employees 20 years or over who involved in relevant industry training to become qualified.
Who is exempt from minimum wage?
- Employees under 16 years (but they are still entitled to other minimum employment rights)
- Some disabled employees who hold an exemption permit from the minimum wage
- Inmates of a charitable institution
- Prisoners working in custody under the Corrections
- Apprentices who are under any other Act
Why is it important for employers to be aware of the minimum wage?
Employers who are unaware of minimum wage standards and fail to pay the correct amount can incur a significant penalty and will be forced to pay back the full amount of lost wages.
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Disclaimer: The information in this article is current as at 2 April 2024, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related corporate bodies (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified, and no warranties are given that it is complete, accurate, up-to-date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.
