NZ Minimum Wage 2026 - $23.95/hr

Updated 1 April 2026 - current rates confirmed against Employment New Zealand

The quick answer

The adult minimum wage in New Zealand is $23.95 per hour from 1 April 2026. That's up 45 cents from last year's $23.50.

Working 40 hours a week, that's $958 gross per week - or $49,816 per year before tax.

What actually hits your bank account is a different number. We'll get to that shortly.

Current minimum wage rates

New Zealand has three tiers. Which one applies to you comes down to your age and whether you're in a recognised training programme.

The starting-out and training rates are set at 80% of the adult rate.

Use the TaxPop PAYE Calculator if you want to see weekly, fortnightly, monthly, and annual take-home pay at any hourly rate.

What $23.95/hr actually takes home

The gross figures above are before tax, ACC, KiwiSaver, or student loans. Here's what a full-time adult minimum wage earner actually takes home if they work 40 hours a week, have no student loan, are not receiving Working for Families, and qualify for the Independent Earner Tax Credit.

One thing most NZ minimum wage pages miss: the Independent Earner Tax Credit (IETC) can give you back $520 a year if your income sits in the eligible range and you're not on Working for Families or a main benefit. At full-time minimum wage you can qualify, so it is worth including in the real take-home number.

Also worth knowing: from 1 April 2026, the default KiwiSaver contribution rate increased from 3% to 3.5%. If you're enrolled and haven't changed anything, slightly less lands in your pay - but more goes toward retirement.

These figures assume no student loan, no secondary tax code, no child support, and no Working for Families. Run your exact numbers in the TaxPop PAYE Calculator.

Who the minimum wage applies to

• Employees aged 16 and over must usually be paid at least the relevant minimum wage.
• Full-time, part-time, casual, temporary, and fixed-term employees are covered.
• The minimum wage applies to every hour worked, including agreed training or induction time.
• It does not apply to genuinely self-employed contractors.
• There is no minimum wage for employees under 16.
• Migrant workers, international students, and visa holders have the same minimum employment rights as other employees in New Zealand.
• Employer KiwiSaver contributions must be paid on top of at least the minimum wage.

If you are not sure whether someone is an employee or contractor, use the Contractor vs Employee Calculator as a starting point.

The starting-out rate trap: The $19.16/hr starting-out rate can apply to 16 and 17 year olds who have not worked for their current employer for 6 continuous months. After 6 months with one employer, they must move to the adult minimum wage. It can also apply to some 18 and 19 year olds in specific benefit-related situations, and to some 16 to 19 year olds doing qualifying industry training. It does not apply if the employee supervises or trains other workers.

The training wage is different. It generally applies to employees aged 20 or over whose employment agreement requires at least 60 credits a year of industry training.

Minimum wage vs living wage

The minimum wage is the legal floor - employers must pay it. The living wage is independently calculated by Living Wage Movement Aotearoa NZ to reflect what a worker needs to live with dignity. Paying it is voluntary.

The current living wage is $28.95/hr, rising to $29.90 from 1 September 2026.

That's a gap of $5.00/hr against the adult minimum wage right now - around $10,400 less in gross annual pay for a full-time worker. When the living wage rises in September, that gap widens to $5.95/hr, or $12,376 a year for a 40-hour worker.

For context: the 2026 minimum wage increase was 1.9%. The living wage increase to $29.90 is 3.3%. The gap is widening.

Over 340 New Zealand employers are accredited Living Wage Employers, including public organisations, major banks, and private businesses. You can read more on the Living Wage Movement website.

Minimum wage history

Source: Employment New Zealand previous minimum wage rates and the 2026 rate announcement.

FAQs

Can my employer pay me less than minimum wage, even if I agree to it?
No. Any employment agreement below the minimum wage is unenforceable on that point. You're entitled to the minimum regardless of what you signed. Contact Employment New Zealand or raise a personal grievance if you think you're being underpaid.

Does minimum wage apply to contractors?
No - only to employees. That said, many people labelled as contractors are actually employees under New Zealand law regardless of the paperwork. If your situation is unclear, it's worth getting advice.

When does the minimum wage change each year?
The minimum wage is reviewed each year, and recent changes have taken effect from 1 April. The 2026 rate applies from 1 April 2026.

What if I'm under 16?
No minimum wage applies. Employers can set any rate, though other employment law obligations still apply.

Can tips count toward minimum wage?
No. Your base pay must meet the relevant minimum wage on its own. If commission or piece-rate work means your effective hourly rate in a pay period falls below minimum wage, the employer must make up the difference.

What's the minimum wage for a 16-year-old?
A 16-year-old may be on the starting-out rate of $19.16/hr for the first 6 continuous months with a current employer. After that, the adult rate of $23.95/hr applies unless another lawful minimum wage category applies.

Do I get minimum wage for a trial shift or induction?
If you are required to be at work, you generally need to be paid for that work time. Minimum wage applies to every hour worked unless a specific exemption applies.

What will the 2027 minimum wage be?
Not announced yet. The announcement typically comes before the next rate change. We'll update this page as soon as it is confirmed.

Related tools on TaxPop

• PAYE Calculator - see your exact take-home at any wage
• GST Calculator - add or remove 15% GST from any amount
• Contractor vs Employee Calculator - compare net pay across both arrangements
• Self-Employed Tax Calculator - estimate income tax if you work for yourself
• KiwiSaver Calculator - check how 3.5%, 4%, 6%, 8%, or 10% changes your pay

Rates sourced from Employment New Zealand, MBIE, IRD, and Living Wage Movement Aotearoa NZ. Take-home figures are indicative and assume a full-time adult minimum wage employee with no student loan, no Working for Families, and eligibility for the Independent Earner Tax Credit. Last updated 1 April 2026.