Table of Contents
What Is the Minimum Wage in NZ in 2025?
As of April 1, 2025, the adult minimum wage in New Zealand is NZD $23.15 per hour. This represents an increase from $22.70 in 2024, following the government’s commitment to align wage growth with inflation and living costs.
For a 40-hour work week, that equates to roughly $926 per week before tax, or about $48,000 annually if you work full-time throughout the year.
The minimum wage NZ rate applies to most employees aged 16 and over, with specific exceptions for training and starting-out workers.
How Much Is Minimum Wage NZ Per Hour, Week, and Year?
| Period | Gross Pay (NZD) | Based on $23.15/hr |
|---|---|---|
| Hourly | $23.15 | Adult rate |
| Weekly (40 hrs) | $926.00 | Before tax |
| Monthly | ~$4,013 | Before tax |
| Annually | ~$48,200 | Before tax |
How Much Is Minimum Wage NZ After Tax?
After tax, minimum wage NZ take-home pay depends on factors such as your tax code, KiwiSaver contributions, and student loans. For a single worker with a tax code M and no deductions, here’s what the numbers look like:
| Category | Gross Weekly | After Tax (Approx.) | Annual Take-home |
|---|---|---|---|
| Full-time (40 hrs) | $926 | ~$780 | ~$40,560 |
| Part-time (20 hrs) | $463 | ~$390 | ~$20,280 |
That means the minimum wage NZ after tax for a full-time worker in 2025 is about $19.50 per hour.
Minimum Wage NZ Rates for Different Age Groups (2025)
While there is a standard adult minimum wage, there are reduced rates for certain workers — particularly younger employees and trainees.
Minimum Wage NZ for 16- and 17-Year-Olds
For 16 and 17-year-olds, the starting-out wage is 80% of the adult minimum, or $18.52 per hour in 2025.
This rate applies if:
- You’re 16 or 17 and have worked for your employer for less than six months, or
- You’re 18–19 and on a recognized training course.
After six months (or 200 hours of work), you typically qualify for the adult rate.
Minimum Wage NZ 2025 Breakdown
Data: Ministry of Business, Innovation & Employment (MBIE) – Updated April 2025
Minimum Wage NZ for Under 16
There is no legal minimum wage for workers under 16 in New Zealand. Employers can set pay rates independently, though they must still follow child employment laws (restricted hours, safety rules, etc.).
Minimum Wage NZ for Students
Students aged 16 and over generally fall under the same categories — either starting-out or adult rates, depending on experience and training status.
Minimum Wage NZ for Minors and Youth
Here’s a summary for clarity:
| Age Group | Wage Type | Hourly Rate (2025) | Notes |
|---|---|---|---|
| 18+ | Adult Minimum | $23.15 | Full legal minimum |
| 16–17 | Starting-out | $18.52 | 80% of adult rate |
| Under 16 | N/A | No set rate | Employer discretion |
1. Adult Minimum Wage (2025)
The adult minimum wage applies to most workers aged 16 and over who are not classified as starting-out or training workers.
2025 Adult Minimum Wage:
- Hourly: NZD $23.15
- Daily (8 hours): $185.20
- Weekly (40 hours): $926.00
- Yearly (52 weeks): $48,152 (before tax)
2. Starting-Out Wage (2025)
Applies to:
- 16–19 year-olds in their first 6 months of work with a new employer
- 16–19 year-olds completing certain industry training
- Workers 20+ who have been on a benefit and are entering the workforce
2025 Rate:
- 80% of adult minimum wage: $18.52 per hour
3. Training Minimum Wage (2025)
For workers doing at least 60 credits of industry training per year.
2025 Rate:
- 80% of adult minimum wage: $18.52 per hour
After-Tax Take-Home Pay (2025)
Minimum-wage employees want to know what they actually receive in the hand. After-tax income is affected by:
- Income tax
- ACC levies
- Any student loan or KiwiSaver contributions (optional)
Example: Full-Time Adult Minimum Wage Earner (40 hrs/week)
- Gross weekly pay: $926
- Estimated take-home pay: approx $762–$790 depending on KiwiSaver
Starting-Out or Training Wage (40 hrs/week)
- Gross weekly pay: $740.80
- Estimated take-home pay: approx $625–$650
Historical Minimum Wage Trends in New Zealand
Understanding past wage increases helps predict future changes.
Minimum Wage Growth (Past 10 Years)
| Year | Adult Minimum Wage |
|---|---|
| 2015 | $14.75 |
| 2018 | $16.50 |
| 2020 | $18.90 |
| 2023 | $22.70 |
| 2024 | $23.15 |
| 2025 | $23.15 (unchanged) |
Key Drivers of Wage Changes
- Cost-of-living and inflation
- Government policy
- Labour shortages
- Collective bargaining pressure
- Productivity growth
In 2025, the government paused further increases to balance business sustainabili
Minimum Wage NZ and Living Wage Comparison
While the minimum wage sets the legal floor, the living wage represents what’s needed for a “decent standard of living.”
In 2025, the New Zealand Living Wage is $27.80 per hour, an increase from $26 in 2024. That’s nearly $4.65 higher than the current minimum wage.
This means that while minimum wage NZ helps ensure fair pay, the living wage better reflects the actual cost of housing, transport, and groceries in cities like Auckland and Wellington.
Common Minimum Wage Jobs in New Zealand
These sectors have a high concentration of workers on or close to the minimum wage in New Zealand. The chart is illustrative and shows how minimum wage work is often concentrated in service industries.
Cost of Living Differences by Region
The minimum wage is the same nationwide, but its purchasing power varies dramatically.
High-Cost Areas
- Auckland
- Wellington
- Queenstown
These regions often exceed 50%+ rent-to-income ratio for minimum-wage earners.
More Affordable Regions
- Southland
- Manawatu-Whanganui
- Hawke’s Bay (outside central areas)
Even with cheaper housing, fuel and food costs are still among the highest in the OECD.
How Much Is Minimum Wage NZ Per Year and With Tax?
If you earn minimum wage full-time (40 hours/week, 52 weeks/year):
- Before tax: ~$48,200
- After tax: ~$40,500
- KiwiSaver (3%) deduction: around $1,200 annually
That’s roughly $3,375 per month net income.
If you want a detailed breakdown by profession or region, you can explore average earnings via this internal resource on salary in New Zealand, which compares wages across industries.
How Does Minimum Wage NZ Compare Internationally?
| Country | Hourly Minimum (NZD equivalent) | Notes |
|---|---|---|
| New Zealand | $23.15 | 2025 adult rate |
| Australia | $25.20 | Higher cost of living |
| United Kingdom | $22.60 | Converted from £11.44 |
| United States | $13.20 | Federal minimum |
New Zealand remains among the top 10 countries globally for minimum wage levels relative to living costs, reflecting strong labour protections and regular adjustments.
Employer Obligations & Penalties
Employers Must:
- Provide written employment agreements
- Keep accurate records of hours
- Pay at least minimum wage for every hour worked
- Give payslips if requested
Penalties for Non-Compliance:
- Fines up to $20,000 for individuals
- Fines up to $100,000 for companies
- Back-pay orders for unpaid wages
- Possible public naming of breach cases
Workers can file complaints through MBIE or the Employment Relations Authority.
Minimum Wage NZ vs. Living Standards
At $23.15/hour, a full-time worker earns roughly $48k per year, but housing costs and inflation have outpaced wage growth.
According to Stats NZ, median rent in Auckland now exceeds $680 per week, while groceries and transport have also risen sharply.
Thus, while minimum wage ensures basic fairness, it may not guarantee financial comfort, especially in major urban centres.
Minimum Wage NZ to Salary Conversion
| Hours per Week | Annual Salary (Before Tax) |
|---|---|
| 20 hours | ~$24,100 |
| 30 hours | ~$36,150 |
| 35 hours | ~$42,175 |
| 40 hours | ~$48,200 |
This table helps workers and employers convert minimum wage NZ hourly rates into annual salaries, useful for job offers and budgeting.
What Is the Minimum Wage NZ for PR and Migrant Workers?
In New Zealand, permanent residents (PR holders) and work visa holders are legally entitled to the same minimum wage rates as New Zealand citizens.
The Employment Relations Act 2000 and the Minimum Wage Act 1983 clearly prohibit any form of pay discrimination based on residency or visa status.
That means whether you’re a New Zealand citizen, permanent resident, or on a valid work visa, you must receive at least the adult minimum wage, which is $23.15 per hour in 2025. Employers are legally obligated to pay this rate for every hour of work, unless the employee qualifies for the starting-out or training wage categories (which are based on age and experience, not nationality).
Equal Pay and Employment Rights
All employees in New Zealand — regardless of their visa or residency status — have the same fundamental employment rights. These include:
- The legal minimum wage
- Holiday pay and sick leave entitlements
- Safe working conditions
- Written employment agreements
- Protection from exploitation or unfair dismissal
Employers who pay less than the minimum wage to migrant or PR workers are in breach of employment law and may face fines, legal action, or loss of accreditation with Immigration New Zealand (INZ).
Starting-Out vs Training Wage
Starting-Out Wage
For young workers entering employment.
Lasts 6 months with one employer unless they change roles significantly.
Training Wage
For workers completing structured training or apprenticeships.
Key Differences
- Training wage is tied to education credits.
- Starting-out wage is tied to age and experience.
Economic Impact on Businesses (2025)
The minimum wage freeze in 2025 has mixed implications.
Positive for Businesses
- Reduced wage pressure
- More predictable labour costs
- Stabilisation for industries hit hard by inflation (hospitality, retail)
Challenges Remain
- Rising rent, utilities, and supplier costs
- Labour shortages in key industries
- Pressure to maintain wage competitiveness
Minimum Wage & Special Situations
1. Overtime and Shift Work
There is no mandatory overtime rate in NZ.
But the hourly rate must never fall below the minimum wage.
2. Allowances and Additional Pay
Uniform, tool, or travel allowances must be paid on top of minimum wage.
Allowances cannot be used to “top up” low wages.
3. Casual and Part-Time Workers
They receive the same hourly rate as full-time staff.
Minimum Wage and Contractors
Minimum wage laws do not apply to contractors.
But misclassification is illegal — if a contractor is effectively working as an employee, they may be entitled to back pay.
Minimum Wage and Internships or Volunteers
- Unpaid internships are only legal if the intern is not doing productive work.
- If the business benefits from the work, minimum wage applies.
- Genuine volunteering is exempt — but must not replace paid work.
Tax Implications: Minimum Wage NZ With and Without Tax
If you’re earning minimum wage NZ with tax, your net income depends on:
- Tax code (M, ME, S, etc.)
- KiwiSaver contributions (3%–10%)
- Student loan repayments (12%)
Workers on minimum wage NZ without tax (i.e., gross income) might overestimate their disposable income by 15–20%. Always use an online NZ tax calculator for accurate estimates.
Case Studies: Real-Life Examples
1. Young Worker (18, hospitality)
Part-time starting-out wage, living with parents — take-home pay often adequate but savings limited.
2. Single Parent (full-time adult wage)
Rent takes 45–60% of income in major cities; government support often required.
3. Migrant Worker (trainee wage)
Often faces higher living costs due to visa rules, lack of family support, and higher transport expenses.
Will the Minimum Wage Increase in 2026?
While the 2025 minimum wage is set at $23.15/hour, the government has hinted that future increases will continue to align with inflation and cost-of-living trends.
The next review is expected in early 2026, with economists predicting an increase to around $23.80–$24.00/hour if inflation remains steady at 3%.
Is $27 an Hour Good Pay in NZ?
Yes — earning $27/hour places you above both the minimum wage and the median wage in some industries. For full-time workers, that equals roughly $56,160 annually before tax, a comfortable income in most NZ regions outside central Auckland.
What Is NZ’s Living Wage in 2025?
As mentioned earlier, the living wage for 2025 is $27.80/hour, designed to reflect the true cost of living for an average household. It ensures workers can meet basic needs without financial stress.
FAQs About Minimum Wage NZ
What Is the Minimum Wage in NZ for a 16-Year-Old?
In 2025, the rate is $18.52/hour under the starting-out wage category.
What Is the Minimum Wage in NZ for a 15-Year-Old?
There’s no legally set minimum wage for under-16 workers. Employers determine pay based on experience and job type.
What Is Minimum Wage Per Hour After Tax?
After PAYE deductions, KiwiSaver, and no student loan, take-home pay is roughly $19.50/hour.
How Much Is Minimum Wage 2024 vs. 2025?
The rate increased from $22.70 (2024) to $23.15 (2025) — a 2% rise.
What Is Minimum Wage for a Week of 40 Hours?
Gross weekly income = $23.15 × 40 = $926 (before tax).
What Is Minimum Wage NZ Annually?
Annual salary ≈ $48,200 before tax, or about $40,500 after tax.
What Is Minimum Wage NZ for Under 18?
Typically $18.52/hour unless they qualify for adult rates after six months of continuous work.
What counts as “hours worked”?
Includes:
- Training time
- Opening/closing duties
- Mandatory meetings
- Travel between work sites
- On-call if required to remain available
Breaks generally do not count unless the employee must work through them.
Does minimum wage apply to piece-rate or commission workers?
Yes — their total pay divided by hours worked must equal at least minimum wage.
Can employers pay below minimum wage during a trial period?
No. Trial periods do not override minimum wage.
What if I’m paid below the minimum wage?
You can:
- Speak to your employer
- Request payroll records
- Lodge a complaint with MBIE
- Seek back pay through the ERA
Does minimum wage apply to self-employed contractors?
No, unless they are misclassified and treated like an employee.
Are unpaid internships legal in NZ?
Only when the intern does not do productive work.
Is accommodation counted as wages?
Only if agreed in writing — and only to a regulated maximum deduction.
Do casual and part-time workers get the same minimum wage?
Yes, minimum wage law applies equally to all employees.
How often is minimum wage reviewed?
Every year by the NZ Government, though increases may be paused (as in 2025).
Does minimum wage apply to public holidays, sick leave, and annual leave?
Yes — paid leave must be equivalent to at least the employee’s relevant daily pay or average daily pay.
Conclusion: Understanding Minimum Wage NZ in 2025
The minimum wage rate continues to evolve in response to economic conditions, ensuring fair pay across the workforce.
At $23.15/hour, New Zealand remains a leader in wage fairness compared to similar economies, though the living wage gap highlights the challenges of rising living costs.
For employees, understanding the difference between gross and after-tax earnings, as well as age-based or training rates, is crucial for budgeting.
Employers must ensure compliance with labour laws to avoid penalties and promote fair compensation.
To see how your pay stacks up against national averages, visit our detailed guide on salary in New Zealand
