Reference
Last updated: April 2026
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 Calculator| 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.
The minimum wage is a gross (before tax) rate. After PAYE, ACC levy, and KiwiSaver deductions, take-home pay is significantly lower.
| Deduction | Weekly (40 hrs at $23.95) | Annual |
|---|---|---|
| Gross pay | $958.00 | $49,816 |
| PAYE | -$135.46 | -$7,043.80 |
| ACC earners levy (1.75%) | -$16.77 | -$871.78 |
| KiwiSaver (3.5% default) | -$33.53 | -$1,743.56 |
| Net take-home pay | $772.24 | $40,156.86 |
Note: The KiwiSaver deduction 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.
| 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.
| Measure | Hourly Rate (2026) | Annual (40 hrs) | Gap |
|---|---|---|---|
| Adult minimum wage | $23.95 | $49,816 | Baseline |
| Living Wage (Living Wage Movement Aotearoa) | $28.95 | $60,216 | +$10,400/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.
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.
If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.
Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.
All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.
Calculate.co.nz is proudly part of the Realtor.co.nz group, New Zealand's leading property transaction literacy platform, helping Kiwis understand the home buying and selling process from start to finish. Whether you're a first home buyer navigating your first property purchase, an investor evaluating your next acquisition, or a homeowner planning to sell, Realtor.co.nz provides clear, independent, and trustworthy guidance on every step of the New Zealand property transaction journey.
Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.
All content on this website, including calculators, tools, source code, and design, is protected under the Copyright Act 1994 (New Zealand). No part of this site may be reproduced, copied, distributed, stored, or used in any form without prior written permission from the owner.
© 2019 to 2026 Calculate.co.nz. All rights reserved.