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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 |
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.
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.
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).
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.
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
1. 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.
2. 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.
3. What Is Minimum Wage Per Hour After Tax?
After PAYE deductions, KiwiSaver, and no student loan, take-home pay is roughly $19.50/hour.
4. How Much Is Minimum Wage 2024 vs. 2025?
The rate increased from $22.70 (2024) to $23.15 (2025) — a 2% rise.
5. What Is Minimum Wage for a Week of 40 Hours?
Gross weekly income = $23.15 × 40 = $926 (before tax).
6. What Is Minimum Wage NZ Annually?
Annual salary ≈ $48,200 before tax, or about $40,500 after tax.
7. What Is Minimum Wage NZ for Under 18?
Typically $18.52/hour unless they qualify for adult rates after six months of continuous work.
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
