Minimum Wage Act 1983 — annual review
Minimum wage in New Zealand — 2026 rates and obligations
All employees (except those on starting-out or training rates) must be paid at least the adult minimum wage. Here are the current rates and what employers must do.
📋 Minimum Wage Act 1983 — rates set by Order in Council annually
Current rates (from 1 April 2026)
$23.50
Adult minimum wage
Per hour
$18.80
Starting-out wage
Per hour (80% of adult)
$18.80
Training minimum wage
Per hour (80% of adult)
Note: These rates are indicative. Confirm current rates at employment.govt.nz as they are reviewed annually on 1 April.
Who must be paid the adult minimum wage?
All employees aged 16 and over must be paid at least the adult minimum wage — unless they qualify for the starting-out wage or training minimum wage. There are no exemptions for small businesses, seasonal workers, part-timers, or casual workers.
Starting-out wage — who qualifies?
Three categories of eligible workers
- Workers aged 16–19 who have not yet completed 6 months of continuous employment with their current employer
- Workers aged 16–19 who are paid using the starting-out wage — after 6 months they must move to the adult rate
- Workers who are 16–19 and are in a recognised industry training programme with at least 40 credits per year
Workers who are 20 or over must always receive the adult minimum wage — regardless of experience or training status.
Calculating minimum wage
Hourly rate applies to all hours worked
Minimum wage applies to every hour worked — including overtime, public holidays, and any additional hours. It cannot be averaged across the pay period. An employee working 50 hours must receive at least the minimum wage for all 50 hours.
For salaried employees: divide annual salary by total hours contracted to ensure each hour meets the minimum wage requirement.
Penalties for non-compliance
Paying below minimum wage is an offence under the Minimum Wage Act. Labour Inspectors can:
- Order back pay of all underpaid wages
- Issue a penalty of up to $50,000 for a company or $10,000 for an individual
- Name employers publicly (naming and shaming)
Source: Minimum Wage Act 1983. Current rates at
employment.govt.nz. This is general information, not legal advice.
Frequently asked questions
Can we pay less than minimum wage to apprentices?
Generally no. Apprentices are employees and must receive at least the adult minimum wage unless they qualify for the training minimum wage — which requires enrolment in a recognised industry training programme with at least 40 credits per year.
Do tips count toward minimum wage?
No. Minimum wage must be paid regardless of tips. Tips belong to the employee — they cannot be used to top up wages to the minimum rate.
What if an employee agrees to work for less than minimum wage?
It doesn't matter. Any agreement to pay below minimum wage is void and unenforceable. Minimum wage is a floor — it cannot be contracted out of.
Does minimum wage apply to contractors?
No — minimum wage applies to employees only. However, if a 'contractor' is actually an employee in all but name, the courts may find they are an employee and entitled to minimum wage. The distinction between employee and contractor is determined by the real nature of the relationship.