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FAQ · New Zealand · employment

Last verified: 2026-05-02 · 1,320 words · 5 government sources

Updated 2026-05-02

NZ Minimum Wage 2026 FAQ: $23.95/h Adult, $19.16 Starting-Out

Quick Answer: The **Minimum Wage Order 2026** sets New Zealand's minimum hourly rates from **1 April 2026**: adult **NZ$23.95**, starting-out and training **NZ$19.16**. Most employees aged 16 and over. Specifically:
Table of Contents

The Minimum Wage Order 2026 sets New Zealand’s minimum hourly rates from 1 April 2026: adult NZ$23.95, starting-out and training NZ$19.16. The Order is made under the Minimum Wage Act 1983 and applies to every national-system employee in NZ. This FAQ answers the questions employers and employees most often ask in 2026.

Q1. What are the minimum wage rates from 1 April 2026?

RateAmount per hourApplies to
AdultNZ$23.95Most employees aged 16+
Starting-outNZ$19.1616–17-year-olds new to the workforce; 18–19-year-olds receiving a benefit ≥6 months and not yet 6 months continuously employed
TrainingNZ$19.16Employees aged 20+ in approved industry training (≥60 credits per year)

The starting-out and training rates are 80% of the adult rate. There is no youth minimum wage for 16+ year-olds outside the starting-out criteria.

Primary sources:

Q2. Who is entitled to the adult minimum wage?

Most employees aged 16 and over. Specifically:

After 6 months continuous employment with one employer, a starting-out worker must move to the adult rate — even if still aged 16 or 17. The adult rate also applies once the employee has completed an approved industry training programme (for the training rate transition).

Q3. Who qualifies for the starting-out rate?

Three sub-categories under the Minimum Wage Act 1983:

  1. 16–17-year-olds who have not yet completed 6 months continuous employment with one employer;
  2. 18–19-year-olds who have been receiving a benefit (Jobseeker Support, Sole Parent Support, Supported Living Payment) for ≥6 months and have not yet completed 6 months continuous employment;
  3. 16–19-year-olds who are required by their employment agreement to undertake supervised industry training of at least 40 credits per year.

After 6 months continuous employment with one employer, the starting-out worker moves automatically to the adult rate.

Q4. Who qualifies for the training rate?

Employees aged 20+ who are in an approved industry training programme of at least 60 credits per year. The training rate applies during the period of training; once training completes, the employee moves to the adult rate (or the relevant collective agreement rate).

Q5. Does the minimum wage apply to casuals?

Yes. The minimum wage applies to every employee — full-time, part-time, casual, fixed-term — based on the actual hours worked. A casual is paid the minimum wage for each hour worked plus any applicable casual loading under the contract or collective agreement.

There is no statutory casual loading in NZ — unlike Australia where the 25% casual loading is standard. NZ contracts may agree a casual loading by negotiation; the minimum wage is the floor regardless.

Q6. Does the minimum wage apply to salaried employees?

Yes. The minimum wage is an hourly rate, but a salaried employee’s annual salary divided by their actual hours worked must produce an hourly rate equal to or above the applicable minimum wage. If the salary divided by actual hours falls below the minimum wage, the employer is in breach.

This is an enforcement frontier — many high-hours salaried roles (especially hospitality and retail managers) effectively pay below minimum wage when overtime is included. Employment New Zealand’s Labour Inspectorate audits these arrangements.

Q7. Does the minimum wage apply to working from home?

Yes. The minimum wage applies regardless of where the work is performed.

Q8. What about apprentices?

Apprentices in approved industry training programmes meeting the 60-credits-per-year threshold qualify for the training rate (NZ$19.16/hour from 1 April 2026). Once the apprenticeship completes, they move to the adult rate.

For apprentices who do not meet the training rate criteria — they are entitled to the adult rate (or starting-out rate if under 20 and within the criteria).

Q9. Can I pay less than minimum wage in any circumstance?

No, with one narrow exception: a Minimum Wage Exemption Permit issued under the Minimum Wage Act 1983, s.8 to an employee with a disability that genuinely affects their productivity. The exemption is administered by Employment New Zealand and requires:

These permits are rare and tightly supervised. The previous “youth minimum wage” pathways (other than starting-out and training) were abolished.

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Q10. What if I underpay below minimum wage?

The employer is in breach of the Minimum Wage Act 1983 and the Wages Protection Act 1983. The Labour Inspectorate may:

The employee may also bring a personal grievance under Employment Relations Act 2000, s.103 within 90 days of the underpayment occurring (or being discovered).

Q11. Are deductions for till shortages or breakages permitted?

Only with written consent and specific consultation before each deduction under Wages Protection Act 1983, s.5A. A general “any reasonable deduction” clause in the IEA is not sufficient on its own.

A deduction that brings the employee’s pay below the minimum wage is also a Minimum Wage Act 1983 breach, regardless of consent.

Q12. Does the minimum wage cover holiday pay?

Yes — annual leave pay under Holidays Act 2003, s.21 is calculated as the greater of ordinary weekly pay or average weekly earnings, both of which are based on actual remuneration that must be at or above the minimum wage.

For the 8% pay-as-you-go holiday pay applicable to casual and certain short fixed-term employees under Holidays Act 2003, s.28, the 8% is added to the gross pay (which itself must be at or above minimum wage).

Q13. What about KiwiSaver?

KiwiSaver contributions under the KiwiSaver Act 2006 are separate from the minimum wage. The minimum hourly rate is the gross rate before KiwiSaver employee contribution (typically 3%). The employer’s 3% KiwiSaver contribution is on top of wages — paid into the employee’s chosen scheme, not deducted from the minimum wage.

Q14. When does the minimum wage next change?

The Minimum Wage Order is reviewed annually. The Minister of Workplace Relations and Safety reviews the rates each year, typically with a Cabinet decision in February or March, taking effect on 1 April. The 2027 rates will be published in early 2027.

Operators should diary the 1 April annual update each year and update payroll systems before the first pay period commencing on or after 1 April.

Q15. How do I check what minimum wage rate applies to a specific employee?

A four-question screen:

  1. Age? Under 16 → no minimum wage applies (children under 16 are limited in the work they can do under separate legislation). 16+ → continue.
  2. Status? Industry training (60+ credits per year, age 20+) → training rate. 16–17 new to workforce or 18–19 on long-term benefit, <6 months continuous employment → starting-out rate. Otherwise → adult rate.
  3. 6 months continuous employment with one employer? Starting-out → moves to adult rate.
  4. Salary or hourly? If salary, divide annual salary by actual hours worked to confirm hourly rate ≥ applicable minimum.

When in doubt, default to the adult rate — overpayment is not an offence.

Conclusion

The Minimum Wage Order 2026 establishes NZ$23.95 adult / NZ$19.16 starting-out and training as the floor from 1 April 2026. The rates apply to every NZ employee regardless of contract type, location, or salary structure. Underpayment is enforceable by the Labour Inspectorate, the Employment Relations Authority, and (for serious cases) the Employment Court. The 1 April annual update is the single most important payroll calendar entry in NZ employment compliance. The Employment New Zealand portal at https://www.employment.govt.nz/ publishes the rates, the calculators, and the worked examples.

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Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not solicitors, barristers, attorneys, avocats, notaries, or licensed legal practitioners in any jurisdiction outside Japan. For binding legal advice, consult a qualified practitioner admitted in the relevant jurisdiction.

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