On and from 1 April 2025 the minimum adult wage in New Zealand increases from $23.15 to $23.50. The starting-out and training minimum wage will go up from $18.52 to $18.80 per hour.
These minimum rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.
So, what does this mean for your business?
Well, if you already pay your staff more than $23.50 gross per hour, then there is no impact on your business.
However, if you have staff who are paid at the either the current minimum rate or less than the new $23.50 per hour rate, you will need to ensure that on and from 1 April, these staff are paid NO LESS than $23.50 per hour gross.
If you have employees on the minimum wage, let them know about the increase they will be getting. You should send them a letter or email (variation of employment contract) advising them of the new wage.
Wage Relativity
There is no legal requirement to automatically adjust the wages of staff who currently earn $23.50 or more per hour. From a business perspective you may wish to maintain relativity between your existing pay rates, however that is purely a business decision and not one driven by legislation. If, from a moral position, you do wish to maintain relativity you need to consider what, if any, contractual obligations you have.