March 15, 2024

Minimum wage is increasing on 1 April

AUTHOR

Claire Bryant

The minimum wage is increasing on 1 April. Are you ready?

As a business owner, staying on top of regulation changes is crucial. From 1 April 2024, the minimum wage rates in New Zealand are set to increase. Here’s what you need to know to prepare your business for this change:

Understanding the Changes

  1. Adult Minimum Wage: It will rise from $22.70 to $23.15 per hour.
  2. Starting-Out and Training Minimum Wage: This rate will increase from $18.16 to $18.52 per hour.
  3. Considerations: Remember that these rates are pre-tax before any deductions like PAYE tax, student loan repayments, or child support.

 

5 Ways to Prepare:

  1. Inform Your Team: If you have employees on minimum wage, inform them about the impending increase.
  2. Check Payroll Systems: Ensure your payroll provider or relevant team members are ready to implement the new rates. Your payroll software should automatically update to the latest rate, but it’s best to confirm.
  3. Review Employment Agreements: Take this opportunity to ensure all employment contracts are up to date. Discuss any necessary changes with your employees and update contracts accordingly.
  4. Consider Pay Relativity: Assess how the wage increase may affect internal pay relativity and external benchmarking. Employees on higher wages may seek adjustments to maintain relative differences.
  5. Update Budget Forecasts: Incorporate the expected increased costs into your budget and cash flow forecasts

 

Let's chat

Do you need help preparing for this change? Chat with our team today to ensure you’re ready for 1 April.