New Zealand Minimum Wage Rates: An Overview
New Zealand's minimum wage provisions are primarily governed by the Minimum Wage Act 1983. This Act establishes the framework for setting minimum rates of pay for workers aged 16 years or over [Source: Minimum Wage Act 1983, s 4(1)]. The specific rates are regularly updated by an Order in Council — a legal instrument made by the Governor-General on the advice of the Executive Council, used to make regulations and orders [Source: Minimum Wage Act 1983, s 4(1)].
Adult Minimum Wage
The adult minimum wage applies to most workers aged 16 years or over, subject to certain exceptions. As of 1 April 2024, the adult minimum wage rate is $23.15 per hour [Source: Minimum Wage Order 2024, cl 4].
Starting-Out Wage
The starting-out wage is a lower minimum wage rate applicable to specific categories of younger workers. As of 1 April 2024, the starting-out wage rate is $18.52 per hour [Source: Minimum Wage Order 2024, cl 5(1)].
Eligibility for Starting-Out Wage
A worker is considered a starting-out worker if they meet the following criteria [Source: Minimum Wage Act 1983, s 4A(2); Minimum Wage Order 2024, cl 5(2)]:
- They are aged 16 to 19 years; AND
- They have not completed 6 months of employment with their current employer; OR
- They are aged 16 to 19 years and are completing a recognised industry training course with their employer. An industry training course is defined as a programme of at least 60 credits that leads to a recognised qualification [Source: Minimum Wage Act 1983, s 4A(2)(c); Education and Training Act 2020, s 159].
Training Wage
The training wage is another lower minimum wage rate designed for workers engaged in approved industry training. As of 1 April 2024, the training wage rate is $18.52 per hour [Source: Minimum Wage Order 2024, cl 6(1)].
Eligibility for Training Wage
A worker is considered a trainee for the purpose of the training wage if they meet the following criteria [Source: Minimum Wage Act 1983, s 4B(2); Minimum Wage Order 2024, cl 6(2)]:
- They are aged 16 years or over; AND
- They are undertaking an approved industry training programme that involves at least 60 credits per year.
General Application and Exclusions
The minimum wage rates apply to all hours worked by an eligible worker [Source: Minimum Wage Act 1983, s 4(1)]. This includes any time spent waiting for work if the worker is required to be at the workplace.
Certain workers are not covered by the Minimum Wage Act 1983, including [Source: Minimum Wage Act 1983, s 5]:
- Workers for whom a minimum wage is fixed by another specific enactment.
- Workers employed on specific terms under the Disabled Persons Employment Promotion Act 1960.
When to Seek Independent Legal Advice
Individuals seeking clarity on their specific employment situation, including minimum wage entitlements, or who believe their minimum wage rights have been breached, may benefit from obtaining independent legal advice. Information can be sought from relevant official bodies such as Employment New Zealand or from free resources like Community Law Centres.