Minimum Wage Update: What You Need to Know (Effective 1 April 2025)

From Tuesday, 1 April 2025, the adult minimum wage will increase from $23.15 to $23.50 per hour. While a 1.5% rise may seem modest compared to previous years (last year’s increase was 2%), it’s still an important adjustment that businesses need to plan for.

The starting-out and training minimum wage rates will also increase—from $18.52 to $18.80 per hour—to maintain alignment at 80% of the adult minimum wage.

What Employers Need to Do

If you employ staff on or near the minimum wage, here’s how to prepare:

1. ✅ Review your payroll and identify which team members will be affected.

2. 🗣 Communicate the change to impacted employees—early conversations help set clear expectations.

3. 💻 Update your payroll system and employment agreements (if applicable) no later than Thursday, 27 March to ensure you’re ready for the 1 April deadline.

4. 📄 Document the change using a pay increase form to keep your records tidy and compliant.

5. 📊 Review your budgets—a small hourly increase can have a wider impact on wage costs, particularly for larger or seasonal workforces.

A Quick Reminder

Paying below the minimum wage—even accidentally—can result in penalties and back pay obligations. Staying ahead of compliance changes protects both your people and your business.

Need Support?

For full details, visit Employment New Zealand. If you need a pay increase form or tailored HR support, we’re here to help.

📞 Call our team on 0800 HR FOR U

Or flick us an email—we’re happy to chat.