As a business owner or manager, you need to be ready for the minimum wage rate increase from 1 April 2024.
- Adult starting wage will go up from $22.70 to $23.15 an hour
- Starting-out and training minimum wage will go up from $18.16 to $18.52 an hour
- All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.
If any employment agreements (contracts) are not current or you did not give one to your employees, now is an ideal time to discuss with them in good faith. Update the contract with any terms and conditions that were agreed to by both parties before the contracts were last reviewed. Make sure they include all the mandatory clauses a contract should have by law. Another useful tool is the employment agreement builder if your employees do not have one.
Things an employment agreement must contain
Now is also an ideal time to ensure you know the details around the minimum wage, including that:
- it applies to all hours worked, unless both parties agree to a higher rate in the employment agreement
- it applies to employees paid with a salary or piece rates or commission.
Note the minimum wage does not apply in some situations including:
- employees under 16 years of age
- where a Labour Inspector has issued a minimum wage exemption permit to an employee who has a disability that limits them carrying out their work.
Minimum wage exemption for people with disability
Source: Employment New Zealand: https://www.employment.govt.nz/about/news-and-updates/minimum-wage-is-increasing-on-1-april-are-you-ready/
Disclaimer
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