New Zealand Minimum Wage 2024 and 2025

Learn about minimum wage in New Zealand and ensure you receive the correct payment. Our comprehensive guide covers everything you need to know, including how to verify your pay and what to do if you suspect an error.

Updated 30 March 2024

What is the New Zealand Minimum Wage?

The New Zealand Minimum Wage is the minimum hourly rate most New Zealand workers are legally entitled to receive. The rate varies depending on your age and status as an apprentice.

Most workers who are 16 years and older must be paid at least the current minimum wage rate.

Minimum Wage Rates in New Zealand from 1 April 2024

16 years and older: $23.15 per hour$
Starting-out – $18.52 per hour
Training – $18.52 per hour

The Starting-Out and Training minimum wage rates are 80% of the adult minimum wage per government guidance and can be found on Employment NZ's website.

As a reference, you can see minimum wages going back to 1997 using these tables.

Understanding Adult minimum wage vs Starting-out minimum wage vs Training minimum wage

Government guidance from Employment New Zealand makes it clear. As a summary:

Adult minimum wage applies to all employees aged 16 years and over who are:

Not starting-out workers or trainees, or
Involved in supervising or training other workers.

Starting-out minimum wage applies to workers who are:

16 and 17-year-old employees who haven’t done six months of continuous employment service with their current employer. After six months with one employer they are not starting-out workers and must be paid the adult minimum wage.
There are other exceptions if workers are paid benefits or need to undertake training, as outlined here.
If an employee is supervising or training other workers, then the starting-out minimum wage doesn’t apply and they must be paid at least the adult minimum wage.

Training minimum wage applies to workers who are:

Aged 20 years or over whose employment agreement states that they have to do at least 60 credits a year of an industry training programme to become qualified in the area they are working in. Many of these employees will be apprentices.
There are some exceptions to 'training', as outlined here.

Minimum Wage Must-Know Facts and Assistance Options

What to do if you think you have been paid less than the minimum wage?

If you believe you have been paid less than the minimum wage, speak to your employer first. If this does not resolve the issue, you can seek assistance from workplace advice services, such as

Who is entitled to the New Zealand Minimum Wage?

Per this government guidance, nearly all workers in New Zealand are entitled to the minimum wage, including part-time, casual, and temporary workers. However, self-employed individuals and company directors are not eligible for the minimum wage.

Important: You must be at least school-leaving age (16 or over) to receive the minimum wage.

What does not count towards the New Zealand Minimum Wage?

Wages received for working overtime, weekends, or night shifts do not count towards the minimum wage.
Tips, gratuities, and service charges are also not included.

Please be aware incentive payments and bonuses can be counted as part of your basic pay.

Accommodation and the New Zealand Minimum Wage

If your employer provides accommodation, they may consider the value of this when determining your minimum wage rate. No other benefits, such as meals or childcare vouchers, are taken into account when calculating the minimum wage, as per this government guidance. Specifically:

Any agreement relating to accommodation should clearly detail the accommodation arrangement and its cost to the employee, which should be reasonable.
If there is no specific agreement about the cost of accommodation, an employer can deduct 15% of the employee’s wages calculated at the relevant minimum wage rate for board or 5% for lodging.

Frequently Asked Questions

Is there a separate minimum wage for different types of work or industries in New Zealand?

No - the minimum wage applies to all employees, regardless of their job or the industry they work in, and there is no separate minimum wage for part-time workers in New Zealand. Part-time workers are entitled to the same minimum wage as full-time workers.

Are there any exceptions to the minimum wage in New Zealand?

Yes, there are some exceptions to the minimum wage in New Zealand. These include:

Trainees and apprentices who are learning a trade and have a formal training agreement with their employer
People with disabilities who are employed under the Supported Living Payment

What is the process for setting the minimum wage in New Zealand?

The minimum wage in New Zealand is set by the government and is reviewed annually. The government considers several factors when setting the minimum wage, including inflation, changes in the cost of living, and the average wage levels in the country.

Can an employer pay less than the minimum wage if an employee agrees to it?

No, an employer cannot pay an employee less than the minimum wage, even if the employee agrees. The minimum wage is a legal requirement, and it applies to all employees in New Zealand, regardless of their agreement.

Who is responsible for enforcing the minimum wage in New Zealand?

The Labour Inspectorate is responsible for enforcing the minimum wage in New Zealand. The Inspectorate can investigate and prosecute employers who are not paying the minimum wage and recover unpaid wages for employees. An employer who pays less than the minimum wage is breaking the law and can be fined. Employees who are paid less than the minimum wage can also make a complaint - this guide from the Citizens Advice Bureau explains the options.

Can an employee negotiate for a higher wage than the minimum wage in New Zealand?

Yes, an employee in New Zealand can negotiate for a higher wage than the minimum wage. Employees have the right to negotiate their pay and conditions with their employer, and many New Zealanders earn higher than minimum wage.

What's the minimum wage if I'm under 16?

The government makes it clear - there is no minimum wage for employees under 16, but all the other minimum standards and employment rights and obligations apply. When an employee turns 16, they must be paid the relevant minimum wage.

What is the Living Wage?

The living wage is a wage rate calculated to meet the basic cost of living for an individual or a family. It takes into account expenses such as housing, food, transportation, and other essentials and is typically higher than the minimum wage set by the New Zealand government.

The living wage is intended to provide a standard for employers to pay their workers a wage that allows them to live with dignity and meet their basic needs rather than just survive.

The New Zealand Living Wage hourly rate is $26 per the Living Wage Organisation.

What is the difference between the minimum and living wages?

The minimum wage is the lowest amount an employer must pay an employee legally and is enforced by law.
The living wage is a more comprehensive measure of what a wage should be to meet the basic needs of an individual or a family. It considers a wider range of expenses and is typically higher than the minimum wage. The living wage is not legally required but is a standard recommended by 100+ New Zealand organizations to ensure that workers are paid a wage that allows them to live with dignity and meet their basic needs.
In summary, the minimum wage is the legally required minimum, while the living wage is a higher standard for what constitutes a fair and adequate wage.

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