The government has announced that the minimum wage will increase to $23.15 from the 1st April 2024.
Minimum Wage Increase 2024
A moderate 2% increase to the minimum wage is hoped to strike a delicate balance between support for the lowest paid workers and not placing added pressure on an economy struggling with low consumer spending and high interest rates.
The increase from $22.70 to $23.15 will benefit at least 80,000 kiwi’s on the lowest pay rates. The increase see’s a corresponding increase to the training and starting out wages and narrows the gap slightly between the minimum wage and the living wage.
Training and Starting Out Wage for 2024
The training and starting out wages will remain at 80% of the minimum wage. This sees them increase to $18.52.
Living Wage for 2023-2024
The living wage is reset in September every year, with a full recalculation every five years. A recalculation in 2023 saw the living wage for New Zealand jump to $26.00. This rate applies till September 2024.
Median Wage in New Zealand
This data is updated by StatsNZ regularly and in June 2023, it increased to $31.61. The median wage is more than just a nice statistic to know. It is used by Immigration NZ to set the expected pay rates for employees hired on a Visa. The changes to Visa rules are applied every February, using the previous June figure.
Payroll Headache? We Can Help.
If keeping up with the minimum wages as well as every other thing in payroll is giving you a headache, don’t stress. MBP has a dedicated Payroll Team to help sort it all for you. If you’d like to chat about how we can help, flick us an email or book in a free Discovery Meeting with us.