Youth, Starting-Out and Training Wages Explained
Income and Work
💵 The three minimum wage rates
New Zealand does not have a single minimum wage. It has three: the adult minimum wage, the starting-out minimum wage, and the training minimum wage. Most workers are entitled to the adult rate, but younger workers new to the workforce and some workers in formal training can lawfully be paid a lower rate, as long as they meet strict conditions. Getting this right matters, because being paid the wrong rate is one of the most common underpayments in the country, and the difference adds up fast over a year. This guide sets out the current rates that apply from 1 April 2026, explains exactly who qualifies for the starting-out and training rates, and shows the point at which a worker must move onto the full adult wage. It also clears up two things people often get wrong: there is no separate youth rate for under-16s, and the starting-out rate is not a rate an employer can simply choose to pay a young person. Every figure here is checked against Employment New Zealand, and the worked examples show the weekly gross pay at each rate so you can see what the rules mean in your own pay packet.
Rates from 1 April 2026
| Minimum wage type | Hourly rate | Share of adult rate | 40-hour week (gross) |
|---|---|---|---|
| Adult | $23.95 | 100% | $958.00 |
| Starting-out | $19.16 | 80% | $766.40 |
| Training | $19.16 | 80% | $766.40 |
All three rates are gross figures, before PAYE tax, ACC, student loan or KiwiSaver come out. They also apply to every hour actually worked, including training time on the job, trial shifts and time spent opening or closing up. The minimum wage cannot be averaged away by paying more some weeks and less in others.
An employer cannot pay the starting-out or training rate just because a worker is young. The worker has to meet the specific legal conditions for that rate. If they do not, the full adult minimum wage applies, and paying less is an underpayment the worker can recover.
🧑🎓 Who qualifies for the starting-out wage
The starting-out minimum wage of $19.16 an hour applies only to three specific groups of workers. If a worker does not fall into one of these groups, they must be paid at least the adult minimum wage. The three groups are:
Workers aged 16 or 17 who have not yet completed six months of continuous employment with their current employer. Once they pass six continuous months with that employer, they move to the adult rate.
Workers aged 18 or 19 who have been paid one or more specified social security benefits for six months or more continuously, and who have not since completed six months of continuous employment with any single employer.
Workers aged 16 to 19 whose employment agreement states that they must do at least 40 credits a year of an industry training programme.
When a worker moves onto the adult wage
The starting-out wage is a temporary, entry rate. A worker must move onto the full adult minimum wage once any of the following happens:
- They complete six months of continuous employment with the same employer.
- They turn 20 years old.
- Their job requires them to supervise or train other workers. In that case the adult minimum wage applies straight away, whatever their age or length of service.
If a starting-out worker is given the job of supervising or training other staff, the starting-out rate no longer applies and they must be paid at least the adult minimum wage. This is a common underpayment when a young worker is quietly handed extra responsibility.
🔧 The training wage, and workers under 16
The training minimum wage
The training minimum wage, also $19.16 an hour from 1 April 2026, is aimed at older workers who are doing formal industry training as part of their job. It applies to employees who are:
- 20 years of age or older, and
- required by their employment agreement to do at least 60 credits a year of an industry training programme.
The purpose is to support apprentices and trainees aged 20 and over while they earn recognised credits toward a qualification. Note the credit thresholds differ by rate: the starting-out training group needs at least 40 credits a year, while the 20-and-over training rate needs at least 60 credits a year. If the training requirement is not written into the agreement, or the credit load is below the threshold, the worker is on the adult minimum wage.
The training rate is not a discount for any job that involves learning. The worker must be in a recognised industry training programme with the required credits, and the requirement must be stated in the employment agreement. General on-the-job learning does not qualify.
Workers under 16
There is no minimum wage for employees under 16. This surprises people, but it is the legal position: the minimum wage law starts at age 16. It does not mean an employer can treat a young teenager unfairly. A worker under 16 still has every other employment right, including a written employment agreement, holiday pay, rest and meal breaks, and a safe workplace, and their pay rate is whatever the employer and the young person agree in the agreement.
Two things are often confused. First, there is no separate youth minimum wage in New Zealand, the lower rates are the starting-out and training rates with their own conditions. Second, there is no minimum wage at all for under-16s. On a worker's 16th birthday, the minimum wage rules begin to apply, usually starting at the starting-out rate if they qualify.
🔢 Four worked examples
Each example shows the weekly gross pay at the rate that applies, using the rates in force from 1 April 2026. Gross means before tax and other deductions.
Situation: Mia is 16 and has just started her first job at a cafe, working 15 hours a week during the school term. She is new to the employer, so she qualifies for the starting-out wage.
Mia can be paid the starting-out rate only until she completes six continuous months with this cafe. After that she must move to the adult rate, even though she will still be 16.
Situation: Liam is 16 and works 30 hours a week at a hardware store. He has just completed six continuous months with the same employer, so he must move from the starting-out rate to the adult minimum wage.
The move to the adult rate is not automatic in some payroll systems. If Liam is still being paid $19.16 an hour after his six-month mark, that is an underpayment he can recover. He should check his payslip around that date.
Situation: Aroha is 20 and is a first-year building apprentice. Her employment agreement requires her to complete at least 60 credits a year of a recognised industry training programme, so she qualifies for the training minimum wage. She works 40 hours a week.
If Aroha's agreement did not require the 60 credits a year of recognised training, she would be entitled to the adult minimum wage of $23.95 an hour instead. The training rate depends on the training being genuine and written into her agreement.
Situation: Sophie is 18 and was paid Jobseeker Support for eight months before landing a 32-hour-a-week job. Because she was on a specified benefit for six months or more and has not yet done six months of continuous work, she qualifies for the starting-out wage.
Related guides and tools
- Living wage versus minimum wage guide, for how the voluntary living wage compares.
- Pay cycles guide, for how weekly, fortnightly and monthly pay is worked out.
- Negotiating your salary guide, for asking for more once you qualify for the adult rate.
- PAYE tax system guide, for the tax that comes off these gross rates.
- Tools: Minimum wage calculator and take-home pay calculator.
Verified against Employment New Zealand (employment.govt.nz) minimum wage rates and types page and its news notice that the minimum wage is increasing on 1 April 2026, and the Ministry of Business, Innovation and Employment (mbie.govt.nz) minimum wage announcement for 2026. Rates effective 1 April 2026: adult $23.95 an hour, starting-out and training $19.16 an hour. This guide is general information, not legal advice.
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