As a business owner or manager, you need to be prepared for the minimum wage rates increase.

The adult minimum wage in New Zealand is set to increase from 1 April 2024. The details of this increase are as follows:

• Adult minimum wage will go up from $22.70 to $23.15 per hour.
• Starting-out and training minimum wage will go up from $18.16 to $18.52 per hour.
• All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment or child support.

It is advised that you consult your Accountant, Payroll Provider, Management or Finance/HR teams to consult on these changes for your team, or for yourself.

Now is also an ideal time to ensure you know the details around the minimum wage, including that:

• It is applied to all hours worked by an employee, unless both parties agree to a higher rate in the employment agreement.
• It is applied to employees paid with a salary, piece rates or commission.

Note that the minimum wage does not apply in certain situations, including:

• Employees under the age of 16.
• Where a Labour Inspector has issued a minimum wage exemption permit to an employee suffering from a disability that limits their capacity to carry out their work.

Additional exemptions may be applicable, and it is recommended that you consult your Accountant or seek Legal Advice to ensure you're compliant with this legislative change.

If you need more support or advice, you can consult the Government Employment website by clicking here.