Minimum Wage New Zealand 2025-26: Current Rates and Entitlements

As of 1 April 2025, the adult minimum wage in New Zealand is NZ$23.15 per hour. This rate applies to all employees aged 16 and over who aren't subject to the starting-out or training minimum wage. The minimum wage is reviewed annually by the New Zealand Government, with changes typically taking effect on 1 April each year.

For a 40-hour work week (the standard full-time hours in NZ), this equates to NZ$926.00 per week or approximately NZ$48,152 per year before tax. The minimum wage applies to all types of employees — full-time, part-time, and casual — and to all industries without exception.

New Zealand has two sub-minimum wage rates. The starting-out wage is 80% of the adult minimum wage (NZ$18.52/hr) and applies to: 16- and 17-year-olds who haven't yet completed 6 months of continuous employment with their current employer, and 18- and 19-year-olds who have been continuously on a specified social security benefit for 6 months or more and who are required to undertake industry training as a condition of their employment. The training wage is also NZ$18.52/hr and applies to employees aged 20 or over who're doing at least 60 credits per year of industry training as part of a recognised programme.

After 6 months or upon completing training, employees must move to the full adult rate.

Australia's national minimum wage is A$24.95 per hour (from 1 July 2025), while New Zealand's is NZ$23.15 per hour. However, direct comparison requires considering purchasing power parity and the exchange rate. In purchasing power terms, the rates are broadly similar.

Key structural differences exist: Australia has 121 Modern Awards setting higher industry-specific minimums above the national floor, while New Zealand has a single minimum wage with no award system. New Zealand's standard work week is 40 hours compared to Australia's 38.

Australia has a compulsory superannuation system (12% SG) while New Zealand has KiwiSaver with lower minimum employer contributions of 3%.

New Zealand employment law is governed primarily by the Employment Relations Act 2000 and the Holidays Act 2003. Every employee must have a written employment agreement (individual or collective). Minimum entitlements include: 4 weeks paid annual leave after 12 months of continuous employment, 10 days paid sick leave per year (after 6 months of employment, increased from 5 days in 2021), 3 days paid bereavement leave for close family (1 day for others), 11 public holidays per year (with time-and-a-half if worked plus an alternative day off), and up to 26 weeks paid parental leave (government-funded).

There is no probationary period concept, but 90-day trial periods are available for employers with fewer than 20 employees.

KiwiSaver is New Zealand's voluntary workplace savings scheme, comparable to Australia's compulsory superannuation but with key differences. Employees can choose to contribute 3%, 4%, 6%, 8%, or 10% of their gross pay. Employers must contribute a minimum of 3% for enrolled employees.

Unlike Australia's compulsory 12% employer super, KiwiSaver is technically voluntary — employees can opt out within the first 8 weeks of new employment. However, new employees aged 18-64 are automatically enrolled when they start a new job.

There is no equivalent to Australia's maximum contribution base. The government also provides an annual contribution of up to NZ$521.43 for eligible members.

Unlike Australia, New Zealand doesn't have a statutory minimum notice period set by legislation. Notice requirements are determined by the individual employment agreement or collective agreement. If the agreement doesn't specify a notice period, 'reasonable notice' is implied — generally considered to be 2-4 weeks depending on the role and seniority.

New Zealand also lacks a statutory redundancy pay scheme (unlike Australia's NES redundancy scale). Redundancy compensation is only payable if specified in the employment agreement.

Employees who believe they have been unjustifiably dismissed can raise a personal grievance within 90 days and seek remedies through the Employment Relations Authority.

So, the primary source of employment information in New Zealand is Employment New Zealand (employment.govt.nz), run by the Ministry of Business, Innovation and Employment (MBIE). Their website provides free tools including a minimum wage calculator, a holidays and leave calculator, and template employment agreements. For disputes, the Employment Mediation Service provides free mediation.

If mediation fails, the Employment Relations Authority can investigate and make binding determinations. Unions are active in NZ, with major organisations including the New Zealand Council of Trade Unions.

The Community Law Centre network also provides free employment law advice for people on low incomes.