The Government is proposing changing the deed of understanding it has with NZ Post to only require post to be delivered a minimum two days a week in urban areas and three days a week in rural areas.
The Ministry of Business Innovation and Employment said the deed was last reviewed in 2013. It had been scheduled for review in 2018 but that was extended to 2024.
The ministry said, since the last review, New Zealand's digital connectivity had significantly improved. In 2002, about a billion mail items went through NZ Post in a year. In the last financial year, that was 187 million and it is expected to drop to 107 million by 2028.
The ministry is currently seeking submissions as part of a consultation process.
"The proposed changes ...are intended to allow NZ Post sufficient flexibility to achieve commercial sustainability while still responding to New Zealanders' ongoing need for mail.
"Given ongoing decline in the use of the mail service and the years since the last deed review, it is time to consider whether changes should be made to the deed to reflect New Zealanders' declining use of the mail network. Changes also need to be considered to allow the mail service to continue in a commercially sustainable way."
At present NZ Post is required to deliver mail three days a week in urban areas and a minimum of five days a week in rural areas.
The ministry said the changes to the deed would not automatically mean a reduction in service because NZ Post would still be able to make operational decisions.
Other countries had undertaken similar reviews and reduced obligations, it said. Denmark no longer has a national postal provider.
MBIE said NZ Post had stopped delivering on Saturdays in June and had not delivered on Saturday in rural areas for eight years.
Reduction in outlets also proposed
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The proposal would also reduce the obligation to have at least 880 "points of presence" for NZ Post, of which are 240 manned outlets, to 500 initially with a possible step down to 400 over time.
MBIE said most of the current 880 service counters were inside other retail shops.
The reduced requirement would reflect the cost to NZ Post of maintaining a network of postal outlets - "we understand it currently overserves certain urban areas to reach this requirement".
The 880 minimum has not been changed since it was set in 1989.
"NZ Post has said that any change, if made as a result of a new minimum number, will not disproportionately impact rural areas compared to urban areas.
"We note rural customers can also access mail services directly from the rural delivery driver in their area. Changes would also not be implemented immediately following deed changes or without appropriate notice"
Earlier this year, NZ Post confirmed plans to have parcels and mail delivered by the same person, rather than a separate postie and courier driver, as part of wider changes that would reduce staffing by 750 roles over five years.
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Poll: Are our Kiwi summer holidays helping us recharge, or holding the economy back? ☀️🥝
There’s growing debate about whether New Zealand’s extended Christmas break (and the slowdown that comes with it) affects productivity.
Tracy Watkins has weighed in ... now it’s your turn. What’s your take? 🤔
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73.1% We work hard, we deserve a break!
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16.2% Hmm, maybe?
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10.7% Yes!
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Minimum wage to increase from April next year, Govt commits to bigger rise than last year
The Government will increase the minimum wage by 2% from April next year.
Workplace Relations Minister Brooke Van Velden announced the hourly wage would move from the current $23.50 to $23.95 in line with advice from the Ministry of Business, Innovation and Employment.
“Moderate” increases of the minimum wage formed part of NZ First’s coalition agreement with National.
Van Velden says the new rate, which would impact around 122,500 New Zealand workers, strikes a right balance between keeping up with the cost of living – the Reserve Bank expects inflation to fall to around 2% by mid-2026 – and no adding more pressure to the costs of running a business.
The starting out and training minimum wage would be move to $19.16 to remain at 80% of the adult minimum wage.
The minimum wage was last increased on April 1 this year. That 1.5% increased to $23.50, affecting between 80,000 and 145,000 workers, was not at the time in line with inflation which sat around 2.5% in March.
“I know those pressures have made it a tough time to do business, which is why we have taken this balanced approach. With responsible economic management, recovery and relief is coming,” Van Velden said.
“I am pleased to deliver this moderate increase to the minimum wage that reflects this Government’s commitment to growing the economy, boosting incomes and supporting Kiwis in jobs throughout New Zealand.”
Official documents from the Ministry of Business, Innovation and Employment (MBIE) show the department provided the Minister with seven options for the minimum wage, ranging from maintaining the current rate or increasing by 3% up to $24.20 per hour.
A 2% increase was recommended, the Ministry said, as this was ”considered to best balance the two limbs of the objective - protecting the real income of low-paid workers and minimising job losses."
“CPI inflation forecasts suggest annual inflation will ease to be within the 2–2.5% range in the first half of 2026 and remain relatively stable at around 2% from June 2026 through to 2028.
“These forecasts indicate that a 2% increase would largely maintain the real income of minimum wage workers relative to the level of the minimum wage when it last increased on 1 April 2025.”
Officials said a 2% increase wouldn’t have significant employment restraint effects.
But given recent economic data, including a Gross Domestic Product (GDP) contraction and elevated unemployment, MBIE said it favoured a “cautious approach”.
“A 2% increase to the adult minimum wage is expected to affect approximately 122,500 workers, including those currently earning at or below the minimum wage, or between the current rate and $23.95.”
The key groups that would be impacted include youth, part-time, female, and Māori workers, as well as sectors like tourism, horticulture, agriculture, cleaning, hospitality, and retail.
“While these workers would benefit from a wage increase, they may also be more exposed to employer responses to increased labour costs such as reduced hours or adjustments to non-wage benefits,” the ministry said
“The estimated fiscal cost to government from this increase is relatively modest, at $17.5 million annually, consistent with the small cost estimates across all rate options.”
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