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New Zealand Minimum wage increase – 1st April

Minister Brooke van Velden’s announcement of a 2% increase in the adult minimum wage to $23.15 per hour as of April 1st, 2024, reflects New Zealand’s ongoing efforts to ensure fair compensation for workers. This adjustment is part of the nations periodic review process aimed at keeping pace with the cost of living and economic realities, ensuring that workers, particularly those in lower-paying industries, can afford essential goods and services and maintain a decent standard of living.

The decision to maintain training and starting wages at 80 percent of the adult minimum wage rate, rising to $18.52, seeks to strike a balance between affordability for employers and fair compensation for entry-level and inexperienced workers. By setting a proportionate rate for training and starting wages, policymakers aim to encourage workforce participation and skill development while ensuring that businesses can manage labor costs effectively.

For employers and business leaders, the minimum wage increase requires careful review and adjustment of payroll systems and employee compensation structures. As always, our team is here to help – legislative changes often provide a great opportunity to review other processes and broader pay scales, across your organisation. If we can help in any way, don’t hesitate to reach out.

-Scitex