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The minimum wage went up about 7% to $22.70 on April 1, while the living wage will rise by 9.9% to $26 from September 1 this year.
Both changes reflect New Zealand's high cost of living at the moment, but the two figures are set by different people and they have different impacts on different… View moreThe minimum wage went up about 7% to $22.70 on April 1, while the living wage will rise by 9.9% to $26 from September 1 this year.
Both changes reflect New Zealand's high cost of living at the moment, but the two figures are set by different people and they have different impacts on different groups of Kiwis. Here's what it all means.
What is the minimum wage?
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The minimum wage is a legal obligation, set by the government and reviewed each year. It applies to most employees aged 16 years or over, and it's the lowest amount an employer can pay their employee (before tax).
The Ministry of Business, Innovation and Employment estimates about 222,900 people will see their pay rise with the latest hike.
As well as the adult minimum wage, there's a starting-out minimum wage — now $18.16 — for some 16 to 19-year-old employees who haven't been with their current employer for six continuous months yet, or are still undertaking industry training. It is 80% of the adult minimum wage.
But "if an employee is supervising or training other workers, then the starting-out minimum wage doesn't apply and they must be paid at least the adult minimum wage", the Employment NZ website clarifies.
There's also a training minimum wage — also $18.16 — for certain employees, including many apprentices, who are over 20 and undergoing an approved industry training programme.
It doesn't apply to employees who are being trained at work, and again, it doesn't apply to employees supervising or training others.
Are there any exceptions to the rule?
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Not everyone's pay rate is covered by the legislation that sets the minimum wage.
Migrant workers have the same minimum employment rights as Kiwi workers, but a small number of people with disabilities that affect their work are paid less than the minimum wage.
There is no minimum wage for employees under 16, while "inmates of any charitable institution (who aren't living there just because they're employees) who do any work as inmates" are also exempt, as are prisoners working while in custody.
How's the living wage different?
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The living wage is an opt-in rate, released by a group called the Living Wage Movement Aotearoa New Zealand.
In their words, the living wage "means thriving, not just surviving".
It's currently $23.65, and accredited living wage employers pledge to pay at least that amount to all staff and regular contractors.
Like the minimum wage, the cost of living is a key factor in how it's calculated. It is worked out independently, using the latest data and movement in New Zealand’s average hourly earnings.
Living wage employers must meet certain criteria.
How have the two been tracking?
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Both wages have been rising for years, with the current hikes coming as inflation is close to a 32-year high at 7.2%.
The minimum wage was set at just $8.50 two decades ago, from March 24, 2003.
It hit $13 on April 1, 2011, and rose steadily from there before reaching $20 for the first time on April 1, 2021.
The first living wage in New Zealand was set at $18.40 in 2013. At the time, the minimum wage was $13.75.
The living wage cleared $20 within a few years, set at $20.20 in 2017.
Since September 1 last year, it's been $23.65, and the new rate later this year will be the first time it's cleared $25.
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pick up wesley mt roskill please give Ross a call re viewing pick up. 096294288
Hi, should you have a chrome book that you no longer require, and would like it to be used by a student who does not own one, I would be happy to collect it and donate it to our school. Thank you
Hello, I'm a student journalist and I'm doing a story about the online supermarket Supie! If you shop with them I'd love to ask you some quick questions about potential developments and what you'd want to see from them. Get in touch if you're up for that, 021902338 or … View moreHello, I'm a student journalist and I'm doing a story about the online supermarket Supie! If you shop with them I'd love to ask you some quick questions about potential developments and what you'd want to see from them. Get in touch if you're up for that, 021902338 or dyl.p.jones@gmail.com
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… View moreHi neighbours. I'm Dr Siri and I'm a highly experienced dentist with a new approach to dentistry. We perform minimally invasive dentistry with advanced technologies like Cerec, Diagnodent, laser, and air abrasion. For our squeamish neighbours, we offer sedation for pain-free dentistry.
We have a special new patient offer that includes a dental exam and x-ray for just $69, as well as flexible payment plans.
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Hi,
beautiful persian cross breed kittens, available. They are very fluffy, soft, playful, toilet trained. Used to other cats and kids. Proceeds from this sale will go towards getting our other cats fixed.
3 bedroom 2 bathroom house Exchange in North Lakes, Brisbane
Jane in Auckland now, contact her Jane@
Be in to win an experience of a lifetime for your child.
As the official coin toss partner for the Blues, Stuff is giving away six experiences for kids across Tāmaki Makaurau Auckland to take part in the famous ritual at the DHL Super Rugby Pacific and SKY Super Rugby Aupiki home games.
… View moreBe in to win an experience of a lifetime for your child.
As the official coin toss partner for the Blues, Stuff is giving away six experiences for kids across Tāmaki Makaurau Auckland to take part in the famous ritual at the DHL Super Rugby Pacific and SKY Super Rugby Aupiki home games.
They won't just participate in the toss but will also get to watch the game, visit the commentary box and take home a bunch of goodies.
Is your school, sports team, charity or organisation in need of extra space? Apply for 1 of 8 sponsorship packages of $10,000 cash + 2 free storage units for a year.
At National Mini Storage, we’re on a mission to help our Auckland communities get the space they so greatly need. That’s why … View moreIs your school, sports team, charity or organisation in need of extra space? Apply for 1 of 8 sponsorship packages of $10,000 cash + 2 free storage units for a year.
At National Mini Storage, we’re on a mission to help our Auckland communities get the space they so greatly need. That’s why we’ve launched our Creating Space sponsorships, offering over $120,000 in cash grants and storage.
Sony Bravia KDL- 40W4500
In excellent condition with remote and Chromecast. Has been in our spare room so hardly used lately.
No marks or damage and goes fine. Complete with manual. Pick up Mt Eden. No longer required but wish I had dusted it before taking the photos! This is not a Smart TV,
Winter jacket. Extremely comfortable and warm. Has a hood at the back as well. Water resistant. Large size.
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