New Minimum Wage Update – What Employers Need to Know
As the new financial year begins, employers need to prepare for another round of minimum wage increases taking effect from 1 April 2026. These updates are part of the government’s ongoing adjustments to support fair wages across the workforce.
New Rates from 1 April 2026
- Adult Minimum Wage: increasing from $23.50 to $23.95 per hour
- Training and Starting-Out Minimum Wage: increasing from $18.80 to $19.16 per hour
For businesses employing minimum wage staff, this change is important to plan for.
The increase doesn’t just affect the hourly rate. It can also flow through to other payroll-related costs such as:
- Holiday pay and leave accruals
- KiwiSaver contributions
- PAYE and deductions
- Overall staffing costs
For many small businesses, even a small increase per hour can add up over the year, especially when multiple employees are affected. Making sure your payroll system is accurate and updated is essential.
Another thing often overlooked is salaried employees whose pay may now fall below the new minimum when converted to an hourly rate. It’s worth checking this to ensure your business remains compliant.
How to Prepare
Here are a few simple steps to get ready:
1. Check your payroll system
Make sure the new rates are updated and applied from 1 April 2026
2. Review employment agreements
Ensure employees are still being paid above the new minimum requirements
3. Update budgets and cashflow forecasts
Even small increases can affect staffing costs over the year
4. Communicate changes early
Let your employees know about any changes to their pay rates so there are no surprises
Planning ahead will make it easier for your business to adjust to the new financial year while staying compliant and financially prepared.
If you need help reviewing your payroll setup or understanding how these changes may affect your business, feel free to reach out.