minimum pay

The minimum wage for employees aged 16 years and over rose to $12 an hour before tax on 1 April 2008, except for new entrants and employees subject to the minimum training wage. That’s $96 for an eight hour day, or $480 for a 40 hour week.

From 1 April 2008, the training wage increased to $9.60 an hour before tax. That’s $76.80 for an eight hour day, and $384 for a 40 hour week. The training wage applies to people doing recognised industry training involving at least 60 credits a year.

There is no longer a minimum wage for youth as of 1 April 2008. Instead there is a new entrants minimum wage. The new entrants minimum wage is $9.60 an hour before tax . That’s $76.80 for an eight hour day, and $384 for a 40 hour week. The new entrants minimum wage applies to some 16 and 17 year old workers.

There is no statutory minimum wage for employees who are under 16 years old.

By law, employers must pay at least the minimum wage - even if an employee is paid by commission or by piece rate. The minimum wage applies to all workers aged 16 years or older, including home workers, casuals, temporary and part-time workers.

The only exception is when an employee holds an exemption permit.

Holiday pay must be paid in addition to the minimum wage. If an employee receives “pay-as-you-go” holiday pay, this payment must be a separate and identifiable part of their pay.

An increase in the minimum wage will not affect an employee’s other conditions of employment, unless they agree to the changes.

An employee being paid less than the minimum wage can complain to a Labour Inspector, who may investigate and act to recover any money owed. Employees can also get help from our mediators.

For further guidance see our information on:

When “pay as you go” provisions can be used (http://www.ers.dol.govt.nz/holidays_act_2003/pay_as_you_go.html)

Going to mediation (http://www.ers.dol.govt.nz/problem/index.html)

Minimum Wage for New Entrants (http://www.ers.dol.govt.nz/pay/newentrant.html)

Or call us on 0800 20 90 20 during business hours.

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This page was last updated on: 15-May-2008 and is current.

Further information & guidance

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Call us free on 0800 20 90 20 or visit our website at www.ers.dol.govt.nz.

The content of this document covers common problems. It will not answer every question and should not be used as a substitute for legislation or legal advice.

The Department of Labour takes no responsibility for the results of any actions taken on the basis of information on this website, or for any errors or omissions.