Reference
NZ Minimum Wage 2026
Last updated:
The NZ minimum wage is the lowest hourly rate most employees aged 16 and over are legally entitled to receive. Rates are reviewed annually by the Minister for Workplace Relations and Safety and typically change on 1 April each year.
PAYE Calculator Take Home Pay Calculator Hourly to Salary CalculatorCurrent Minimum Wage Rates (From 1 April 2026)
| Type | Hourly Rate | Weekly (40 hrs) | Annual (40 hrs x 52 wks) |
|---|---|---|---|
| Adult (16+) | $23.95 | $958.00 | $49,816 |
| Starting-Out (16-17, first 6 months) | $19.16 | $766.40 | $39,853 |
| Training | $19.16 | $766.40 | $39,853 |
The starting-out and training rates are set at 80% of the adult minimum wage. The starting-out rate applies to 16 and 17-year-old employees who have not completed six months of continuous employment with their current employer. The training rate applies to employees aged 20+ undertaking a recognised industry training programme of at least 60 credits per year.
After Tax: What You Actually Take Home
The minimum wage is a gross (before tax) rate. After PAYE, the ACC levy, and KiwiSaver, take-home pay is significantly lower. A full-time minimum wage income sits in the Independent Earner Tax Credit (IETC) band, so the $520 a year credit is included below.
| Item | Weekly (40 hrs at $23.95) | Annual |
|---|---|---|
| Gross pay | $958.00 | $49,816 |
| PAYE | -$146.65 | -$7,625.80 |
| Independent Earner Tax Credit (IETC) | +$10.00 | +$520.00 |
| ACC earners levy (1.75%, incl GST) | -$16.77 | -$871.78 |
| KiwiSaver (3.5% default) | -$33.53 | -$1,743.56 |
| Net take-home pay | $771.05 | $40,094.86 |
Note: KiwiSaver is optional (you can opt out), and the rate can be 3%, 3.5%, 4%, 6%, 8%, or 10%; the 3.5% rate shown is the new default from 1 April 2026. The IETC is $520 a year ($10 a week) for income between $24,000 and $66,000, abating by 13 cents per dollar above $66,000, but it is not available if you receive Working for Families, an income-tested benefit, or NZ Super.
Minimum Wage History (2008 to 2026)
| Year (from 1 April) | Adult Rate | Youth/Starting-Out Rate | Annual Increase |
|---|---|---|---|
| 2026 | $23.95 | $19.16 | +$0.45 (+1.9%) |
| 2025 | $23.50 | $18.80 | +$0.35 (+1.5%) |
| 2024 | $23.15 | $18.52 | +$0.45 (+2.0%) |
| 2023 | $22.70 | $18.16 | +$1.50 (+7.1%) |
| 2022 | $21.20 | $16.96 | +$1.20 (+6.0%) |
| 2021 | $20.00 | $16.00 | +$1.10 (+5.8%) |
| 2020 | $18.90 | $15.12 | +$1.20 (+6.8%) |
| 2019 | $17.70 | $14.16 | +$1.20 (+7.3%) |
| 2018 | $16.50 | $13.20 | +$0.75 (+4.8%) |
| 2017 | $15.75 | $12.60 | +$0.50 (+3.3%) |
| 2016 | $15.25 | $12.20 | +$0.75 (+5.2%) |
| 2015 | $14.75 | $11.80 | +$0.50 (+3.5%) |
| 2014 | $14.25 | $11.40 | +$0.25 (+1.8%) |
| 2013 | $13.75 | $11.00 | +$0.25 (+1.9%) |
| 2012 | $13.50 | $10.80 | +$0.50 (+3.8%) |
| 2011 | $13.00 | $10.40 | +$0.50 (+4.0%) |
| 2010 | $12.75 | $10.20 | +$0.25 (+2.0%) |
| 2009 | $12.50 | $10.00 | +$0.50 (+4.2%) |
| 2008 | $12.00 | $9.60 | +$1.00 (+9.1%) |
Since 2008, the adult minimum wage has doubled from $12.00 to $23.95 per hour, an increase of 99.6% over 18 years. The largest single-year increases occurred under the Labour government (2019 to 2023), with increases of $1.20 to $1.50 per year. The current National-led government has adopted a more moderate approach of $0.35 to $0.45 per year.
Minimum Wage vs Living Wage
| Measure | Hourly Rate (2026) | Annual (40 hrs) | Gap |
|---|---|---|---|
| Adult minimum wage | $23.95 | $49,816 | Baseline |
| Living Wage (Living Wage Movement Aotearoa) | $29.90 | $62,192 | +$12,376/year |
The living wage is not a legal requirement but is voluntarily adopted by 100+ NZ organisations. It is calculated to cover the basic cost of living for a household with two adults (one full-time, one part-time) and two children.
Who the Minimum Wage Applies To
The minimum wage applies to all employees aged 16 and over, including full-time, part-time, casual, temporary, and fixed-term workers. It does not apply to self-employed contractors. Employers cannot pay below the minimum wage even if the employee agrees. No other benefits (meals, accommodation, etc.) can be counted toward the minimum wage, except for a specific accommodation deduction of up to 15% of wages for board or 5% for lodging.
Enforcement is handled by the Labour Inspectorate. Employers who pay below the minimum wage face penalties and must repay the difference to affected employees.