Minimum wage rates are going up
When
From 1 April 2025:
- the adult minimum wage will go up from $23.15 to $23.50 per hour
- the starting-out and training minimum wage will go up from $18.52 to $18.80 per hour
- all rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.
What to do now
Take this opportunity to review your business processes, employment records and systems.
- Check that your payroll system is ready and updated for the 1 April changes, whether you have a manual or computer-based system.
- Re-calculate and update your budgets and cashflow as the increase may have an impact, including on items such as ACC levies, KiwiSaver contributions and holiday pay.
- Review the pay rates for skilled employees from 1 April.
- Consider reviewing your pricing strategy.
Tools to help you
The free cash flow forecast tool can help you plan for the minimum wage change.
The free employment agreement builder can help you make sure future agreements have the correct minimum wage details.
