The Government has confirmed the adult minimum wage rate will increase by 2% to $23.95 an hour from 1 April 2026.
Workplace Relations and Safety Minister, Brooke van Velden said the increase reflects the Government’s agreement to moderate increases to the minimum wage each year as part of the NZ First-National coalition commitment.
“This new rate will benefit around 122,500 working New Zealanders and strikes a balance between keeping up with the cost of living and not adding further pressure on the costs of running businesses,” says Ms van Velden.
“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.
“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.”
She said the increase aims to help minimum wage workers keep up with the cost of living, with inflation projected to remain relatively stable at around 2% from June next year.
Youth unemployment and impacts on wage compression were two considerations when setting this year’s minimum wage.
“Past minimum wage increases have driven wage compression, reducing the differentiation in pay between workers based on skills, experience or performance. The moderate increases agreed to by this Government for the 2024 and 2025 minimum wage decisions have started to ease this trend,” says Ms van Velden.
“It is also important that minimum wage rates support young people to gain employment. Young people are much more likely than other population groups to earn at or below the adult minimum wage rate. Ensuring a balanced minimum wage rate enables young people to have access to entry level jobs that can set them up for greater future success.”
The starting-out and training minimum wage rates will be set at $19.16, to remain at 80% of the adult minimum wage.
More information can be found here: Minimum wage reviews | Ministry of Business, Innovation & Employment (mbie.govt.nz).
