Make sure HR teams are ready to implement the change, employers told
Employment New Zealand has reminded employers to be "ready" to implement the new minimum wage rates that will take effect this April.
The minimum wage is set to increase to $23.95 an hour, up from the current $23.50, from April 2026.
The training and starting-out minimum wages will also rise to $19.16 per hour, up from the current $18.80.
"Make sure your payroll provider, accountant, lawyer, finance, or HR teams are ready to implement the new wage rates," Employment New Zealand told employers in a new guidance.
"If your payroll system is manual or computer-based, check that your settings will be updated correctly."
This is also an opportunity for employers to check if any employees on starting-out or training wages are due to move to the adult minimum wage, according to the agency.
"If any employment agreements are out of date, or if you have employees who do not have a written agreement, it is important to update these now. Make sure the agreement includes all required clauses under the law," it added.
Preparing for minimum wage hike
The reminder is just one of the recommendations from Employment NZ on how employers can prepare for the upcoming minimum wage hike.
It also urged businesses to let employees know about what their new pay rate will be by sending them a letter or email confirming the change.
It also advised employers to check whether the minimum wage increase will impact wage relativity in the workplace.
"Employees on higher rates may want to discuss changes to maintain pay differences within teams or compared with other employers in your industry," it said.
Short- and medium-term budget forecasts should also be reviewed and should include the increased wage and leave-related costs.
"This will help you plan for any financial impact on your business," Employment NZ said.
The agency also told employers to refresh their knowledge of minimum wage obligations, noting that this is a "good time" to review how it applies.
New Zealand's minimum wage applies to all hours worked, unless a higher rate is agreed in the employment agreement. It also applies to employees paid by salary, piece rates, or commission.
The minimum wage does not apply to employees under 16 years of age, and employees with a disability who hold a minimum wage exemption permit from a Labour Inspector.
"If you have not yet spoken with your accountant, payroll provider, or finance/HR team, it's a good idea to do this now," Employment NZ said. "You can also take this opportunity to check that your employment records, processes, and systems are up to date."
