- The adult minimum wage will rise to $23.50 an hour from April 2025.
- The increase supports workers while balancing economic recovery and business stability.
- Starting-out and training wage rates remain at 80 per cent of the adult rate.
The adult minimum wage in New Zealand will increase by 1.5 per cent to $23.50 an hour, effective from 1 April 2025, Workplace Relations and Safety Minister Brooke van Velden announced today.
This adjustment aligns with the NZ First-National coalition’s commitment to implement moderate annual increases to the minimum wage. The Cabinet’s decision takes into account the current economic climate and labour market conditions.
“The New Zealand economy is still recovering from a sustained period of high interest rates and recessionary conditions. In that context, delivering a modest increase in the minimum wage strikes the right balance between supporting workers and limiting further costs on business,” said Minister van Velden.
She noted that inflation has now returned to the Reserve Bank’s target band for the first time in over three years, which has enabled the Government to focus on supporting employment growth. “Supporting the Government’s objective to reduce the number of people on the Jobseeker Support benefit was also a priority. To do this, we need to ensure employers and businesses can continue to grow and provide employment opportunities – which could be put at risk with a disproportionate increase in the minimum wage.”
The Minister also highlighted the importance of minimum wage jobs for young workers, saying, “Young people are more likely than other demographic groups to be earning the minimum wage, and it is important to ensure they are not locked out of jobs as the minimum wage rises. The experience and life skills that young workers can gain in these minimum wage jobs can set them up for greater future prosperity and success.”
In a move welcomed by businesses, the Government announced the change early to provide sufficient preparation time. “The past three minimum wage announcements have been made in February of the year the increase came into force, leaving businesses only two months to prepare for the change. I am pleased to make this announcement prior to Christmas, to give employers the time needed to make any necessary changes to payroll systems,” Minister van Velden added.
The starting-out and training minimum wage rates will increase to $18.80 an hour, maintaining their 80 per cent alignment with the adult minimum wage.