The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Greg Millar
Published on

Minimum wage increased to $16.50 per hour

The adult minimum wage rate (for employees aged 16 years and over) recently increased by 75 cents to $16.50 per hour before tax.

payroll wages salaries-423The current minimum wage rates (before tax) are as at 1 April 2018 and apply to employees aged 16 years or over:

Type of minimum wage Per hour 8 hour day 40 hour week 80 hour fortnight
Adult $16.50 $132.00 $660.00 $1,320.00
Starting-out $13.20 $105.60 $528.00 $1,056.00
Training $13.20 $105.60 $528.00 $1,056.00

Employees have to be paid at least the minimum hourly wage rate for every hour worked. Anyone who thinks they are being paid less than the minimum wage should Employment NZ.

Different types of minimum wage rates has more information on the different types of minimum wage rates: adult, starting-out and training.

Exceptions and exemptions

There are some exceptions to the application of the Minimum Wage Act 1983 and a small number of people with a disability hold an exemption permit from the minimum wage.

Minimum wage exemption for people with disability has information about exemption permits to employees who have a disability that limits them carrying out the requirements of their work.

Paying employees under 16

There is no minimum wage for employees under 16 but all the other minimum standards and employment rights and obligations apply. When an employee turns 16, they must be paid the relevant minimum wage (even if they were paid less than the minimum wage when they were 15).

Exceptions to the Minimum Wage Act 1983

The Minimum Wage Act 1983 doesn’t apply to:

Source employment.govt.nz

Topics: employees Payroll