2025 Changes to the Minimum Wage
From April 1, 2025, the adult minimum wage will go up from $23.15 to $23.50 per hour. Starting-out and training minimum wage will go up from $18.52 to $18.80 per hour. All rates are before tax and deductions are applied.
If you weren’t aware of the details of the minimum wage already:
- The minimum wage applies to all hours worked, unless both parties agree to a higher rate in the employment agreement
- it also applies to employees paid with a salary or piece rates or commission.
Note the minimum wage does not apply in some situations including:
- employees under 16 years of age
- where a Labour Inspector has issued a minimum wage exemption permit to an employee who has a disability that limits them carrying out their work
What to do:
If you have employees on the minimum wage, let them know about the increase they will be getting. You should send them a letter or email (variation of employment contract) advising them of the new wage.
Ensure that your payroll providers are aware of the change and ready to go before April 1st.
This is also a good opportunity to check your employment records, processes and systems are current: if any of your people are on starting-out or training wages, now is a good time to check and record when they will be eligible to move onto the adult rate.
If any employment agreements are not up to date (or you have not given one to your employees!), discuss this with them, in good faith, now. We can help you update employment agreements to reflect the terms and conditions of your workplace and ensure they include all the mandatory clauses an employment agreement should have by law.
We can also help you evaluate the potential impacts on your business looking at internal wage relativity and external benchmarking e.g., how your people are paid compared to each other, and how your pay rates compare to others in your industry or sector.
Don’t forget to add expected increased costs to your short and medium-term budget forecasts. This will help you plan for and manage holiday pay liabilities too.
If you are not sure how these changes impact your business or where you should start, we are more than happy to help you navigate through them. Contact us at hello@hellomonday.co.nz or give us call us at 09 377 5200.