What is the minimum wage in New Zealand right now?
From 1 April 2026 the adult minimum wage in New Zealand is $23.95 an hour before tax. The starting-out wage and the training wage are both $19.16 an hour, which is 80 percent of the adult rate. These rates are set by the government each year and apply to almost every employee aged 16 or over, whatever their job, their hours or the size of their employer.
If you are 16 or older and you are an employee, your employer cannot legally pay you less than the rate that applies to you. Your employment agreement cannot override this, and neither can a verbal deal. The rates are a floor, not a target, so an employer is free to pay more.
The basics
- Adult minimum wage: $23.95 an hour. This is the default rate for anyone aged 16 or over who does not fit the starting-out or training categories.
- Starting-out wage: $19.16 an hour. It covers three groups: 16 and 17 year olds in their first 6 months with a new employer; 16 to 19 year olds whose employment agreement requires at least 40 credits a year of industry training; and 18 or 19 year olds who have been on a specified benefit for 6 months or more and have not yet worked 6 continuous months for one employer since starting that benefit.
- Training wage: $19.16 an hour. For workers aged 20 or over whose employment agreement requires them to do at least 60 credits a year of an approved industry training programme to become qualified in their field.
- Anyone who supervises or trains other workers must get the adult rate, even if their age or training would otherwise put them on the lower rate.
- Ordinary on-the-job training does not count. Being shown the ropes in your first few weeks is not an industry training programme. The training wage only applies to a formal, credit-based programme written into your agreement.
- Under 16s have no minimum wage, but the rest of employment law still applies to them.
- The rates are per hour before tax. On a 40-hour week that is $958 gross at the adult rate and $766.40 at the starting-out or training rate.
- Minimum wage exemption permits exist for some workers with a disability that significantly limits their work. The Labour Inspectorate must issue the permit, the worker must agree, and it has to be reasonable.
How a 40-hour week is worked out
Here is what a full-time week on the adult rate looks like for the 2026/27 tax year, using the standard M tax code with no student loan.
Gross pay: 40 hours x $23.95 = $958.00 a week, or $49,816 a year.
Income tax (PAYE): The first $15,600 of annual income is taxed at 10.5 percent, which is $1,638. The next $34,216 (up to $49,816) is taxed at 17.5 percent, which is $5,987.80. Total income tax for the year is $7,625.80, or about $146.65 a week.
ACC earners' levy: 1.75 percent of $49,816 is $871.78 a year, or about $16.77 a week.
Take-home pay: $958.00 minus $146.65 minus $16.77 is roughly $794.58 a week, or about $41,318 a year.
If you are in KiwiSaver at the default 3.5 percent, another $33.53 a week comes out, leaving about $761.05. Your employer adds their own 3.5 percent on top, which goes into your KiwiSaver account rather than your bank.
Your payslip may differ by a few cents because PAYE tables round each pay period, and the exact result depends on your tax code. But if the numbers are out by dollars rather than cents, something is wrong.
A real-world scenario. Tegan is 17 and starts her first job at a cafe in May 2026. For her first 6 months she can legally be paid $19.16 an hour. In November 2026, once she has worked 6 continuous months for that cafe, her rate must go up to the adult rate of $23.95. If the cafe keeps paying her $19.16 past that point, it is underpaying her from the day the 6 months ended. If Tegan is promoted to shift supervisor in month three, she must go to the adult rate straight away.
The catch
- The 6-month clock is per employer. A 17 year old who moves to a new job starts another 6 months on the starting-out wage. Their earlier work history does not carry over.
- The clock does not reset for a pay rise or a new role with the same employer. Six continuous months with one employer is the test.
- Piece rates and commission are not an escape hatch. Whatever the pay structure, you must still receive at least the minimum wage for every hour you actually work.
- Unpaid "trial shifts" are generally illegal. If you are doing real work, you are an employee and must be paid for the hours.
- Deductions cannot drag you below the minimum. An employer who deducts for uniforms, till shortages or breakages without your written consent is breaking the Wages Protection Act, and the deduction can also push you under the minimum wage.
- Salaried workers are covered too. If you are on a salary and regularly work long hours, divide your weekly salary by the hours you actually worked. If it comes out under $23.95, you are being underpaid.
- Contractors are not covered. The minimum wage applies to employees, not genuine independent contractors. If you are called a contractor but are really treated like an employee, that label may be wrong, and the Labour Inspectorate can look at the real relationship.
- The rate changes every 1 April. Check it each year.
What to do if it is wrong
- Check your payslip. Employers do not have to give payslips unless your agreement says so, but they must keep wages and time records and must show you or give you a copy when you ask. Confirm the hourly rate, the hours recorded and the gross total.
- Work out what you should have been paid. Multiply the hours you actually worked by the rate that applies to you. Compare it to the gross figure on your payslip, not the net.
- Raise it with your employer in writing. Many underpayments are payroll mistakes. Set out the dates, hours and amounts, and ask for the shortfall to be paid.
- Call Employment New Zealand on 0800 20 90 20 (Monday to Friday, 8am to 5:30pm) if your employer refuses or ignores you. They can explain your options.
- Make a complaint to the Labour Inspectorate. Minimum wage breaches are a breach of minimum employment standards. The Inspectorate can investigate, order the arrears to be paid and seek penalties.
- Use mediation or the Employment Relations Authority if you want to pursue the arrears yourself. There is a time limit on recovering old arrears under section 142 of the Employment Relations Act 2000, so do not sit on it. Check the current limitation period on legislation.govt.nz.
- Keep your own records. Note your start and finish times each day. If your employer's records are missing or wrong, your own notes carry weight.
Common questions
I am 18 and started a new job. Can I be paid the starting-out wage?
Only if you fit one of the starting-out groups. An 18 year old who has not been on a benefit for 6 months and is not on a 40-credit training programme must be paid the adult rate of $23.95 from day one.
Does the minimum wage include holiday pay?
No. Holiday pay is separate. If you receive 8 percent "pay as you go" holiday pay, that must be shown on top of your minimum wage earnings, not folded into the hourly rate.
My employer says the minimum wage does not apply to small businesses. Is that true?
No. The minimum wage applies to every employer in New Zealand regardless of size, industry or how long they have been operating.
How far back can I claim?
There is a statutory time limit on actions to recover wages. Check the current period under section 142 of the Employment Relations Act 2000 and act quickly, because every pay day that passes can fall outside the window.
Will the rate go up again?
The government reviews the minimum wage every year and any change takes effect on 1 April. Check the Employment New Zealand page below in early 2027 for the 2027/28 rate.
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- Minimum wage rates and types, Employment New Zealand
- Minimum wage, Employment New Zealand
- Payslips, Employment New Zealand
- Labour Inspectorate, Employment New Zealand
- Contact Employment New Zealand
- Tax rates for individuals, Inland Revenue
- Payroll calculations and business rules specification 2026/27, Inland Revenue (ACC levy and PAYE rates)
- Employment Relations Act 2000, section 142 Limitation period
- Minimum Wage Act 1983
- Wages Protection Act 1983
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Last reviewed 14 October 2026. Written by Streetwise from the official pages listed above. General information only, not legal or financial advice.