Some Basic Information About Minimum Wage In New Zealand

Minimum wage rates apply to full-time, part-time, fixed-term, casual, and work-from-home employees aged 16 and older. Employees who are paid an hourly wage or salary, as well as other commission or piece-rate employees, are subject to the minimum wage standards.

What Is The Purpose Of A Minimum Wage?

Although the idea of a minimum wage has been around for a lot longer, New Zealand was the first country in the world to implement one in 1894. Minimum wage laws have evolved to ensure equal pay and workplace fairness while also attempting to raise the standard of life and alleviate poverty.

The debate about whether or not a minimum wage should be established, as well as what amount it should be set at, continues to this day.

What Is The Current Minimum Wage In New Zealand?

Minimum wage rates will apply to the following workers aged 16 and above as of April 1, 2021:

• Minimum Wage for Adults - $20.00 Per Hour

It is the most prevalent & commonly used by businesses in New Zealand, and it applies to all employees over the age of 16.

• Starting-Out Minimum Wage – $16.00 Per Hour

It applies to employees aged 16 to 19 who are starting their first job. However, some conditions must be met to use this wage rate.

• Training Minimum Wage – $16.00 Per Hour

It applies to employees aged 20 and above who are involved in relevant industry training to become qualified. However, some conditions must be met to use this wage rate.

How Often Does The Minimum Wage Change?

The Minister for Workplace Relations and Safety is required to submit an annual review of the minimum wage by the 31st of December each year under the Minimum Wage Act 1983. Since 2000, the minimum wage in New Zealand has increased every year for all types of minimum wage workers, including adults, new entrants, and trainees.

Every year, employers must prepare for increases in the minimum wage. These changes have an impact on businesses in all industries, as well as employers who pay their employees the minimum wage NZ. Employers who fail to pay the correct minimum wage may be forced to repay all lost wages as well as face harsh penalties.

What Happens If You Don't Follow The Rules?

If an employee believes they have been underpaid, they should first go to their employer to try to find a solution. They can also file a claim with the Employment Relations Authority to recover the underpayment, or they can seek the help of a Labour Inspector.

For more information about Minimum Wages In New Zealand & immigration New Zealand with related costs, feel free to contact Immigration Advisers New Zealand Ltd. You can call us at +64 9 379 0219 or mail contact@nzimmigration.info right now.