New Minimum Wage Rate

From 1 April 2020 the minimum wages go from $17.70 to $18.90

A significant change that many employers need to be aware of is the increase of minimum wage in New Zealand. You will need to advise the employee of this and record the change in writing. This means that you should draft a Variation Letter for the employee to sign. One copy should be retained for the employer record and one copy retained by the employee. It is important to keep a record of the change in case you are ever audited by the Labour Inspectors.

The minimum rates apply to all employees whether they work full-time, part-time or casually and whether they are paid a wage for time worked, a salary, partly or wholly on a commission basis, or for what they produce (piece rates).

The minimum adult rate applies to any employee aged 16 years and over unless they are eligible for the 'starting-out' wage or the 'training' wage. There is no legal minimum rate for employees aged 15 years or younger. Please note when employing under 15 there are restrictions within Health and Safety policies on what duties they can perform.

If you have salaried employees, you need to make sure that their total remuneration meets minimum wage requirements for each pay period, considering any overtime, meetings, or time spent opening and closing stores. If these bring total remuneration below the Minimum Wage rate, you are breaking the law.

If you require any advice, please call Nicky on 021 929 528