Your rights at work: minimum wage
Who is eligible for the minimum wage?
There are three minimum wage rates:
- the adult minimum wage applies to all employees aged 16 and over who are not new entrants or trainees
- the new entrants minimum wage applies to employees aged 16 and 17 except for those who have completed 200 hours or three months of employment, whichever is shorter; or who are supervising or training other workers; or who are trainees
- the training minimum wage applies to employees aged 16 and over who are doing recognised industry training involving at least 60 credits a year.
There is no statutory minimum wage for employees who are under 16 years old.
What are the minimum wage rates from 1 April 2009?
The adult minimum wage is $12.75 an hour. That’s $102 for an eight hour day, and $510 for a 40 hour week.
The new entrants minimum wage and the training minimum wage are $10.20 an hour. That’s $81.60 for an eight hour day, and $408 for a 40 hour week.
If you're not getting paid at least the minimum wage, let your employer know, or contact the Department of Labour via our website www.dol.govt.nz or freephone 0800 20 90 20.
All about your pay
How is my pay calculated?
Regardless of how your pay is calculated, it must be possible for you to earn the appropriate minimum hourly rate.
Your employment agreement can:
- set your hourly rate
- set the amount you are paid weekly or annually (without specifying your hours to be worked)
- pay you a certain amount based on the amount of work you do (say how many sacks of fruit you pick)
- pay you a certain amount based on your results (say a commission for signing people up to a company scheme).
For example, you get paid one dollar for every sack of fruit you pick. You must be paid at least $10.00 an hour before tax, if you are a new entrant or on the training minimum wage, even if you don’t manage to pick 10 sacks in an hour. If you are eligible for the adult minimum wage, you must be paid at least $12.50 an hour before tax, even if you don’t manage to pick 13 sacks in an hour. This also assumes you work at a reasonable rate for that particular job.
When should I be paid?
You should always be paid on the day, and at the intervals, that you and your employer have agreed to in your employment agreement.
REMEMBER: Your employer can’t change your normal pay day without your agreement.
How should I be paid?
You have the right to be paid in cash unless:
- you are employed by a local authority or the Crown, in which case you can be paid by cheque
- you have given written consent to other forms of payment, e.g. having your pay paid straight into your bank account
- you’re away from your normal workplace at the time you normally get paid. If this is the case, you can be paid by postal order, money order, cheque or direct credit.
REMEMBER: Your employer can’t control how you spend you money. What you do with your pay is entirely your business.
What can be taken out of my pay?
As a general rule, your employer can’t make deductions from your wages. But they can in some situations, such as when:
- the deductions are required by law (for example, income tax, ACC etc)
- deductions from your pay are provided for in your employment agreement
- you’ve given your written consent. You can withdraw your consent in writing at any time and your employer should then stop the deductions within two weeks or as soon as possible
- you receive overpayments because you were absent from work without your employer’s authority, e.g. you were on strike, locked out or suspended. (Your employer must tell you before deducting any money from you and then make that deduction within two weeks of telling you.)
- a Court directs that a deduction be made.
Your Rights
What happens if I work shifts and rosters?
Your employment agreement can specify any of these options:
- what your regular cycle of shifts/rosters are
- how you are advised of your shifts/rosters
- that you will work as required
When a regular cycle of work develops, e.g. you always work Mondays, this is seen as a day on which you would ordinarily have worked. In this case, your employer should not change your roster or work cycle simply to avoid giving you pay or leave that you are entitled to.
If you this happens to you, call us free on 0800 20 90 20 and ask for assistance.
What happens to my pay when I leave my job?
When you finish your job, this is what you’re entitled to:
- pay for the annual holidays that you haven’t taken
- alternative holidays for working on a public holiday that haven’t been taken must be paid
Unused sick leave or bereavement leave are not required to form part of your final payment.
REMEMBER: You might be entitled to pay for public holidays that occur after you finish working. Ask yourself this question: when the number of annual holiday days owed to you is added to your period of employment, do any public holidays fall during that (added on) time? If the answer is ‘yes’, then you’re entitled to be paid for those days. If it sounds confusing, give us a call free on 0800 20 90 20.
What about my other rights at work?
You are entitled to these rights at work by law:
- the right to receive a written employment agreement when you start a job
- the minimum wage
- rights to health and safety in employment
- minimum rest breaks and meal breaks
- paid parental leave
- appropriate breaks and facilities if you wish to breastfeed or express breast milk at work or during work time, where it is reasonable and practicable for your employer to provide those facilities and breaks in the circumstances
- rights to undertake voluntary military service
- rights to join unions and bargain collectively
- rights to take a personal grievance if you are disadvantaged at work or sacked from your job
- protection against discrimination at work
- protection against sexual harassment at work
If you want to know more about the Holidays Act 2003, the minimum wage or any other work related issue, you can contact your union if you’re a member or give us a call free on 0800 20 90 20.
I’m having a problem at work - how do I get help?
Contact your union if you are a member, or call us free on 0800 20 90 20.
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