Minimum Wage rising to $22.70 per hour from 1 April 2023

9 February 2023

Circular 23-007

Relevant for Club Committees and Management

On Tuesday, 9th February 2023, the Prime Minister announced that the adult minimum wage will be rising to $22.70 per hour from 1 April 2023.

This is an increase of $1.50 per hour from the current hourly rate of $21.20 and aligns with the 7.2% rate of Consumer Price Index inflation in the year ended December 2022.

This is the largest minimum wage increase in the last five years.

The training and starting-out minimum wages will also both increase to $18.16 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $16.96 per hour.

For an employee who works 40 hours a week, the minimum wage rise to $22.70 per hour means they’ll earn an extra $60 each week before tax.

Clubs will need to start preparing for these increases now, taking into account the cumulative effect of seemingly small increases to the minimum wage.

More information on the minimum wage increase announced yesterday can be found on MBIEs website using the link below:

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