For people working 40 hours a week on the current Minimum Wage, they’ll earn an extra $48 a week, before tax.

Even better news, the government has said it will be raised again in 2021, to $20 an hour.

Make sure you earn at least Minimum Wage

The Minimum Wage rate is set by the government and is reviewed each year.

Employees must be paid at least the minimum hourly wage rate for every hour worked.

The Minimum Wage rate applies to all employees aged 16 and over (full-time, part-time, fixed-term, casual, working from home), paid by wages, salary, commission or piece rates (with some exceptions).

Starting-out and training wages will also go up on April 1st 2020, to $15.12 an hour (80% of the adult minimum wage).

Learn more about the Minimum Wage: Employment New Zealand website (Ministry of Business, Innovation and Employment)

Is it enough? Minimum Wage vs Living Wage

The Living Wage is currently $21.15 per hour. Unlike the Minimum Wage, it also takes into account the cost of living each year.

It is defined as ‘the hourly wage a worker needs to pay for the necessities of life and participate as an active citizen in the community.’*

(*From Living Wage Aotearoa website.)

The Living Wage rate is calculated annually and announced each year on April 1st. Employers (voluntarily) paying it, have until September 1st the same year to decide if they will continue to.

Does your employer pay the Living Wage?

Ideally, every New Zealander would earn at least the Living Wage, but some employers genuinely can’t afford it. There are benefits for employers who do pay it though – it can help:

  • Increase staff productivity & loyalty
  • Reduce the number of sick days taken by employees
  • Lower staff turnover

If you earn less than the Living Wage and haven’t talked to your employer about being paid more, before discussing it you can find out more on the Living Wage Aotearoa website.