In case you missed it, the government has announced an increase to the minimum wage that kicked in from April 1. The adult minimum wage will rise by $0.45 an hour, taking it up to $23.15 an hour. This will mean additional costs for many businesses.
The training and starting-out minimum wages will also both increase to $18.52 per hour, remaining at 80% of the adult minimum wage. This is a rise from the rate of $18.16 per hour.
For an employee who works 40 hours a week, the minimum wage increase to $23.15 per hour means they’ll earn an extra $18 each week before tax.
Between 80,000 and 145,000 New Zealand workers who are currently paid between the current and new minimum wage rates will get an increase in their pay packets as a result of the change in the minimum wage.
Workplace Relations and Safety Minister Brooke van Velden said that “a cautious approach to the minimum wage is required this year” giving “our lowest paid workers more money in their pockets, without hindering job growth or imposing unreasonable costs on businesses”.
If your business has minimum wage employees:
talk to your payroll people to ensure wage changes have been made
adjust your budgets for the year
consider the impact on the rest of your financial plans
check whether existing employment agreements provide for overtime or allowances. If they do, consider the impact of the wage increases.
Give us a call if you’re unsure how to plan for the minimum wage adjustment.
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