The Government announced that the adult minimum wage will go up by 50 cents to $15.25 an hour from 1 April 2016. The starting-out and training hourly minimum wages rates will also increase from $11.80 to $12.20 per hour from 1 April 2016.

As mentioned in our newsletter the hourly rate for any employee whose current rate is between $14.75 and $15.24 will be automatically increased to $15.25. This new rate will apply to days paid where they are dated on or after April 1st. Note: If you have employees who are receiving the Starting-out or Training rates their hourly rate will need to be updated manually.

There are three minimum wage rates:

The adult minimum wage applies to all employees aged 16 and over who are not starting-out workers or trainees, and all employees who are involved in supervising or training other employees.

The starting-out wage applies to starting-out workers. Starting-out workers are:
16- and 17-year-old employees who have not yet completed six months of continuous employment with their current employer.

18- and 19-year-old employees who have been paid a specified social security benefit for six months or more, and who have not yet completed six months’ continuous employment with any employer since they started being paid a benefit. Once they have completed six months’ continuous employment with a single employer, they will no longer be a starting-out worker, and must be paid at least the adult minimum wage rate.
16- to 19-year-old employees who are required by their employment agreement to undertake industry training for at least 40 credits a year in order to become qualified.

The training minimum wage applies to employees aged 20 years or over who are doing recognised industry training involving at least 60 credits a year as part of their employment agreement, in order to become qualified.

You can read more on the Employment New Zealand website.