From 1 April 2025:
- the adult minimum wage will go up from $23.15 to $23.50 per hour
- the starting-out and training minimum wage will go up from $18.52 to $18.80 per hour
- all rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.
What to do now
Take this opportunity to review your business processes, employment records and systems.
- Check that your payroll system is ready and updated for the 1 April changes, whether you have a manual or computer-based system.
- Re-calculate and update your budgets and cashflow as the increase may have an impact, including on items such as ACC levies, KiwiSaver contributions and holiday pay.
- Review the pay rates for skilled employees from 1 April.
- Consider reviewing your pricing strategy.
Tools to help you
The free cash flow forecast tool can help you plan for the minimum wage change.
Cash Flow Forecaster(external link) The free employment agreement builder can help you make sure future agreements have the correct minimum wage details.
Employment Agreement Builder(external link) Employment New Zealand also has tips on how to prepare for 1 April on its website.
Minimum wage is increasing on 1 April 2025. Are you ready?(external link) — Employment New Zealand
Source: Business.govt.nz info@ub.comms.business.govt.nz
Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.