Minimum Wage
April 1st this year sees the adult minimum wage rate rising from $23.50 to $23.95 and accordingly the starting-out and training minimum wage from $18.80 to $19.16 which is 80% of the minimum adult.
Minimum wage rates do not apply to children under 16 years of age or those with a minimum wage exemption permit from MBIE.
For more in-depth information on minimum wage rates and their application please see our webpage here:
www.employers.co.nz/minimum-wage-new-zealand.aspx
KiwiSaver
This year also sees the increase of employer contributions for KiwiSaver. After 19 years at 3% from April 1st 2026 the minimum employer contribution rises to 3.5%.
Employees too see their minimum contributions rise to 3.5% at the same time. They do however have the option to apply for a temporary rate reduction through
myIR to keep it down at 3% for up to 12 months. If the employee does this the employer is entitled to match the lower rate.
The KiwiSaver enrollment age also drops to 16. Any new employees from 16 years of age now must be enrolled into KiwiSaver by default. Employees can opt out of KiwiSaver between 14 and 56 days after their first day of employment.
For employers who operate a 'total remuneration' salary approach they need to ensure that the uplifted employer contribution does not drop the employee below the new minimum wage rate.
Make note also KiwiSaver contributions are scheduled to rise again on April 1st 2028 to 4%. The appropriate clauses in our Employment Agreements builders and template have been updated accordingly.