Commencing from 1 April 2023, New Zealand's minimum wage will increase, affecting many workers nationwide. The Ministry of Business, Innovation and Employment (MBIE) has announced the forthcoming rise, with the aim of ensuring fairer wages and improvements to the living standards of low-income workers. This adjustment will be applicable to all employees aged 16 and above, regardless of their occupation or working hours.
The adult minimum wage will be raised from $21.20 to $22.70 per hour, constituting an increase of $1.50, which is roughly inline with recent CPI inflation of 7.2%. Additionally, the training minimum wage will rise from $16.96 to $18.16 per hour, reflecting a $1.20 increase.
Employers are encouraged to prepare for the impending minimum wage increase to ensure compliance with the law. The Employment New Zealand website offers resources and guidance to assist businesses in understanding their obligations and adapting their payroll systems accordingly. Industries such as retail, where a significant number of workers earn the minimum wage, will experience the greatest impact. Retail NZ advises businesses to review their budgets and employment contracts in order to accommodate the higher wages and remain in adherence to employment laws.
Minimum Wage Rates as of 04/2023
| Adult Minimum Wage | $22.70 Per Hour |
|---|---|
| Starting-Out Wage | $18.16 Per Hour |
| Training Minimum Wage | $18.16 Per Hour |