News Article

latest news in employment law

Minimum Wage Increase

Published 01 Feb 2015

The adult minimum wage is going up by another 50c effective April 1st 2015 to $14.75 per hour.

The 'training' and 'starting-out' hourly minimum wages will also rise to $11.80 an hour; these rates are  80% of the adult minimum wage.

The rates are gross before tax and holiday pay must be paid in addition to the minimum wage.

There are serious ramifications for breaches of Minimum Wage requirements (and holiday pay) and Labour Inspectors (MBIE) have the power to issue demand notices if:

  • An employee complains and the Inspector believes the employee has not received wages or holiday pay;
  • Where the employer has been given a 7 day notice to comment on the complaint and the Inspector is satisfied the employee is entitled to the wages or holiday pay.

Labour Inspectors can enter the employer's premises under the provisions of the Act, interview people and require copies of wages, time and holiday records.

Employers who fail to comply with any 'requirements' of Inspectors face penalties under the Act.

For more information about minimum wage and the calculations please see our Minimum Wage article.