The minimum wage in New Zealand from 1 April 2026
Three rates, one set of rules about who gets which, and a handful of ways employers end up below the line without meaning to — usually through unpaid minutes rather than the hourly rate itself.
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Key takeaways
- From 1 April 2026 the adult minimum wage is $23.95 an hour; the starting-out and training rates are both $19.16
- There is no youth rate. A 16- or 17-year-old moves to the adult rate after 6 months with you, and straight away if they supervise or train others
- The minimum wage applies to every hour worked, including overtime, and cannot be averaged over a season
- Opening, closing, cleaning up, team meetings and on-the-job training are work and must be paid
- Employer KiwiSaver contributions sit on top of the minimum wage — they can never be used to reach it
The minimum wage rates from 1 April 2026
The Minimum Wage Act 1983 sets three rates. The adult rate rose from $23.50 to $23.95, and the starting-out and training rates from $18.80 to $19.16. All are before tax and before lawful deductions.
| Rate | Per hour | 8-hour day | 40-hour week | 80-hour fortnight |
|---|---|---|---|---|
| Adult | $23.95 | $191.60 | $958.00 | $1,916.00 |
| Starting-out | $19.16 | $153.28 | $766.40 | $1,532.80 |
| Training | $19.16 | $153.28 | $766.40 | $1,532.80 |
Employees under 16 have no minimum wage entitlement. Everyone 16 and over is on the adult rate unless they meet one of the specific conditions below.
Who gets which rate
Starting-out rate ($19.16)
The starting-out rate can apply to an employee under 20 in one of three situations:
- Aged 16 or 17 and has not yet worked for you for 6 continuous months. Six months is counted in calendar months from their first day, however many hours they work.
- Aged 18 or 19 and has been on a specified social security benefit for 6 or more continuous months, and has not worked for one employer for 6 continuous months since the benefit started.
- Aged 16 to 19 and their employment agreement requires at least 40 credits a year of industry training.
It never applies if the role includes supervising or training other workers. A 17-year-old who trains the new starters on the till is on $23.95, whatever their start date.
Training rate ($19.16)
For employees aged 20 or over whose employment agreement requires at least 60 credits a year of an industry training programme — usually apprentices. On-the-job training that is not part of an approved programme does not qualify, and again the rate does not apply to anyone who supervises or trains others.
The birthday-and-anniversary trap
The starting-out rate is time-limited by design. A 16-year-old who starts in October is on the adult rate from April, and nothing in a pay run flags that automatically. Diarise the 6-month date for every starting-out employee the day they join — and if they change employer, the 6 months starts again with the new employer.
What counts as working time
The minimum wage must be paid for each hour worked and cannot be averaged over a season or period. That includes overtime. There is no strict legal definition of work, but Employment New Zealand treats an activity as work where it constrains the employee’s freedom, places a responsibility on them, or benefits the employer. Its examples:
- after-hours team meetings
- opening and closing the business
- cleaning and tidying up
- on-the-job training
- product familiarisation
For rostered businesses this is where breaches actually happen. A daily 15-minute pre-shift briefing that is not on the roster, or a close that routinely runs 20 minutes past the rostered finish, is unpaid work. On a minimum-wage rate it takes the effective hourly pay below $23.95 even though the rate on the payslip is correct. Rest breaks of at least 10 minutes are paid too; only meal breaks are unpaid.
The fix is to pay from clocked times rather than rostered times. Clock-in records show when people actually started and finished, and the gap between those and the roster is the number to watch.
Deductions and the minimum wage
Wages must be paid in money. You can only take money out of pay if the law requires it (PAYE, KiwiSaver, student loan), the employee has given written consent, or in some cases to recover an overpayment. The minimum wage test is done before deductions.
- Accommodation. An agreed, reasonable cost for accommodation deducted from wages counts as wages for the minimum wage test. With no specific agreement, you cannot deduct more than 15% of wages at the minimum rate for board (accommodation and meals), or 5% for lodging (accommodation only).
- Other goods or services. Non-cash benefits do not count towards the minimum wage. An agreed cost for them counts only where the employee has expressly authorised the deduction.
- KiwiSaver. Employer contributions are paid on top. They can never be used to make up the minimum wage.
Checking you are compliant
For each employee and each pay period, divide gross pay (before deductions) by the hours actually worked, and compare it with the rate that applies to them. Do it for salaried staff as well as wage earners. Our free NZ minimum wage checker does that arithmetic, including unpaid time, and the timesheet calculator totals the hours behind it.
The minimum wage also flows into leave. Public holiday, sick and alternative holiday pay are calculated from relevant daily pay, so an underpaid hour is usually underpaid twice. Our Holidays Act guide explains how those calculations work.
Related guides
- PAYE for employers — what comes off a minimum-wage pay, with a worked example
- Public holidays 2026 — time and a half and alternative holidays
- KiwiSaver employer contributions — the 3.5% on top of pay
Sources
Checked on 15 October 2026.
Pay from the hours actually worked
Clocked start and finish times, approved against the roster and exported to payroll — so unpaid minutes never quietly take a rate below the minimum.
This guide summarises the New Zealand minimum wage rules in force from 1 April 2026 and is not legal or payroll advice. Rates are reviewed every year and entitlement depends on an employee's age, training and circumstances. Check Employment New Zealand, or take advice, before relying on it for a specific case. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Minimum wage questions
- From 1 April 2026 the adult minimum wage is $23.95 an hour before tax. The starting-out and training minimum wages are both $19.16 an hour. Rates are reviewed every year and usually change on 1 April.
- At the adult rate, 40 hours is $958.00 gross a week and $1,916.00 a fortnight. At the starting-out or training rate it is $766.40 a week. Those are gross figures — PAYE, the ACC earners’ levy and KiwiSaver come off afterwards, as our PAYE guide shows.
- No. There are only three rates: adult, starting-out and training. The starting-out rate applies only in specific situations — mainly 16- and 17-year-olds in their first 6 months with you — and never to someone who supervises or trains other staff.