Minimum wage rises by $1.10 on 1 April 2021
23 March 2021
The Government has confirmed that the adult minimum wage will increase, from $18.90 to $20.00 per hour on 1 April 2021.
The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour.
What: The new minimum wage rates, before tax, are:
- Adult - $20.00 an hour (up from $18.90)
- Starting-out - $16.00 per hour (up from $15.12)
- Training - $16.00 per hour (up from $15.12)
What you’ll need to do:
- If you do have staff on minimum wage, send them a letter or email to let them know about the increase.
- If any workers are on starting-out or training wages, now is a good time to check when they’ll be eligible to move to the adult rate.
- If you pay staff minimum wages, recalculate your budget for the rest of the year, as you’ll be paying out more in wages. To work out the updated cost of your employees, use the Employee cost calculator.
- Check that any affected employment contracts are updated.
- Talk to whoever runs your payroll system to make sure they’re ready for the changes.