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Minimum wage rises by $1.20 on 1 April 2019

The minimum wage is going up from $16.50 to $17.70 per hour. Here’s what you’ll need to know for your business.

Minimum wage rises

When: 1 April 2019

What: The new minimum wage rates, before tax, are:

• Adult — $17.70 an hour

• Starting-out — $14.16 an hour (up from $13.20)

• Training — $14.16 an hour (up from $13.20)

Read our page on minimum pay rules for a summary of who can earn the different rates.

Why: Government must by law review the minimum wage rates every year.

What you’ll need to do: You and your staff can agree to any wage above the minimum rates. If your payroll and employment agreements are a few years old, you can use this as a chance to update them using our easy to use tool, the Employment Agreement Builder. If any workers are on starting-out or training wages, now is a good time to check when they’ll be eligible to move onto the adult rate.

Note that it is a legal requirement to have a written employment agreement with all your staff. (external link)

Read our page on checking the cost of an employee to get an idea of how much the increase will cost your business.

You can also use the online calculator to estimate costs of hiring a new employee.

Source: www.business.govt.nz


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