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Minimum Wage Increase

From 1 April 2021, the adult minimum wage will increase from the current rate of $18.90 per hour to $20.00 per hour.

The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour remaining at 80% of the adult minimum wage. 

There are 3 types of minimum wage
The adult minimum wage – applies to employees aged 16 years or older who are not starting outworkers or trainees.

The starting out minimum wage – applies to workers who are:

16 and 17 years old
  • Who have been with their current employer for less than 6 months.

18 and 19 years old: 

  • Who have been paid a benefit for 6 months or more 
  • Have not worked for 1 employer for longer than 6 months since being on a benefit and have been with their current employer for less than 6 months

16 to 19-year old:

  • whose employment agreement requires them undertake industry training for at least 40 credits a year in order to become qualified in the area they are working in

The training minimum wage – applies to workers who are: 

  • aged 20 years or older
  • under the employment agreement, have to do at least 60 credits a year of industry training
  • As an employer, you will need to ensure your payroll systems and processes are updated.


Contact Us

Contact Tim Doyle or Jane Evans today to discuss your business continuity planning needs  (or any other matter) on 07 823 4980 or contact us. Our office is in Cambridge, NZ, but distance is no problem. We have many international and national clients.



This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.