The minimum wage rises by $1.10 on 1 April 2021
The minimum wage is going up from $18.90 to $20.00 an hour on 1 April 2021.
The new minimum wage rates, before tax, are:
- Adult – $20.00 an hour (up from $18.90)
- Starting-out – $16.00 per hour (up from $15.12)
- Training – $16.00 per hour (up from $15.12)
What you’ll need to do:
- If you do have staff on minimum wage, send them a letter or email to let them know about the increase.
- If any workers are on starting-out or training wages, now is a good time to check when they’ll be eligible to move to the adult rate.
- If you pay staff minimum wages, recalculate your budget for the rest of the year, as you’ll be paying out more in wages. To work out the updated cost of your employees, use the Employee cost calculator.
- Check that any affected employment contracts are updated.
- Talk to whoever runs your payroll system to make sure they’re ready for the changes.
Why are the minimum wages being changed?
By law, the government must review the minimum wage rates every year.
If you are an employer, you are obligated to increase any of your staffs wages to come into line with the new requirements after the 1st April 2021.
