New Zealand sees 'one of the toughest' End of Financial Year End of the Financial Year period
On 1 April, employers across New Zealand are expected to be compliant with the new minimum wage and KiwiSaver changes that are taking effect.
The adult minimum wage will be rising to $23.95 per hour. Starting-out wage will increase to $19.16 per hour, while training wage will also be lifted to $19.16 per hour.
The changes apply to all employees 16 and over, including part-time, casual, fixed-term, and remote workers.
Meanwhile, the default rate of employer KiwiSaver contributions will increase from three per cent to 3.5%.
Employees aged 16 and 17 years old who opt into KiwiSaver will also start receiving compulsory employer contributions.
Peninsula New Zealand, a workplace advisory firm, advised employers to start updating their payroll systems for the new wage and KiwiSaver settings.
They should also review employment agreements, as well as communicate the upcoming changes to their employees, particularly young workers and trainees.
Employers should also ensure that minimum wage increases are applied from the first full pay period after April 1, as non-compliance may lead to penalties and disputes.
"As wage theft has become a criminal offence, unintentional underpayments have much more dire consequences for small businesses now," said Ashlea Maley, associate director - operations, Peninsula New Zealand, in a statement.
"We urge business owners to take this opportunity and review their internal systems and processes. With new regulations coming into effect, employers need to act cautiously, stay informed, and make sure every part of their operation is compliant."
Businesses making 'hard calls'
Peninsula's advisory comes as they report a "noticeable increase" in employers seeking guidance ahead of the End of the Financial Year (EOFY) on 31 March.
"This EOFY period is proving to be one of the toughest we've seen in recent years. Businesses are making hard calls - letting staff go, restructuring, or in some cases closing their doors altogether," Maley said.
"We're supporting a growing number of employers navigating redundancies brought on by uncertainty and escalating costs."
Business confidence has been slipping in New Zealand, with the ANZ business outlook survey for February showing that it dipped to 59.2, down from the previous 64.1.
"Given that confidence had already been running at a high level throughout 2025, the developments in the economy so far in 2026 have in a sense been unwelcome ones: signs that inflation pressures are re-emerging, and an increasingly clear message that the next move in interest rates will be up," said Westpac NZ senior economist Michael Gordon.
