The New Zealand government has confirmed that as of 1 April 2022, the minimum wage will be increasing to $21.20 per hour.

Workplace Relations and Safety Minister Michael Wood confirmed the increase, saying it would directly benefit about 300,000 workers, and help many households most impacted by Covid-19.

“Raising the minimum wage will directly benefit approximately 300,000 workers, and will help many households that have been most impacted by the effects of COVID. For someone working a 40-hour week on the minimum wage, this increase will see them earning an extra $48 a week, and almost $2,500 more each year." he reports.

The starting-out and training minimum wage will also increase from $16 to $16.96 per hour from 1 April 2022.

From 1 April 2022, that means that wages (pre-tax) will appear as follows.

It comes after inflation hit its highest level in 30 years, with an annual rate of 5.9 percent for 2021 and an increase of 1.4 percent in the three months ended December. Unemployment was at a record low of 3.2 percent for the three months ended December, while private sector wages grew an average 2.8 percent.

What does this mean for you? As an employee if you are currently on minimum wage, your HR and Payroll teams should automatically roll this over in your pay effective from 1 April 2022. Employees must be paid at least the minimum hourly wage rate for every hour worked. Anyone who thinks they are being paid less than the minimum wage should report this to Employment New Zealand by calling 0800 20 90 20, or by clicking here, where their concerns will be handled in a safe environment.

If you need further assistance, you can chat to our Consultants who will be able to point you in the right direction!

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