Minimum Wage Increase from 1 April 2024

Adult minimum wage (over 16 years old) will increase by $.45 to $23.15 per hour and the starting-out and training minimum wage will increase by $0.36 to $18.52 per hour

What does this mean for your business?   Get ready now!

Identify employees who may be affected by the minimum wage increase. This could include salaried staff earning ~$48k pa with unspecified hours. If an increase is required this must be in place and ready for pay periods from 1st April 2023.

Below is a general guideline for year end actions to ensure your payroll system is ready for the changes:

• ensure you have processed your final pay run for the year and checked this has been filed to IRD

• review pay history reports and leave transaction reports for any surprises

• issue annual earnings certificates to all employees

• check employee details including tax code, contact details, emergency contacts

• check and update any employees affected by the minimum wage increase. If a pay increase is required inform employees in writing as this is a variation to their employment agreement. If a salaried employee this may involve calculating what their maximum working hours are for each pay period before a top-up payment may be needed.

• review and update ESCT rate for each employee.

• check sick leave entitlements: after 24 July 2021, employees are entitled to 10 days of sick leave at their next anniversary.

• review current leave entitlements especially if the work pattern has recently changed. Are the employees' working hours correctly recorded?