The adult minimum wage increased to $24.50 per hour on 1 May 2026. The starting-out and training wage is $19.60/hr. If you haven't updated your payroll yet, you're already in breach.
The numbers
- Adult minimum wage: $24.50/hr (from 1 May 2026)
- Starting-out wage: $19.60/hr — workers aged 16–19 in their first 6 months with an employer
- Training wage: $19.60/hr — workers on an industry training agreement
The annualised salary trap: A salary of $50,960/year works out to exactly $24.50/hr over 2,080 standard hours. Any salaried employee regularly working more than 40 hours per week at that salary is now below minimum wage. Check it. Minimum Wage Act 1983 s6
Who it applies to
Every employee, including casual, part-time, and homeworkers. Piece-rate and commission workers must earn at least minimum wage for every hour worked — calculate total pay divided by total hours for each pay period.
Employer checklist
- ✓ Update payroll system to $24.50/hr minimum
- ✓ Check all salaried staff — run salary ÷ actual hours worked
- ✓ Update piece-rate calculations to verify per-hour rate
- ✓ Update starting-out/training wage to $19.60/hr
- ✓ Check commission earners — total pay ÷ hours must hit $24.50
Full payroll readiness checklist
20 checks covering minimum wage, Holidays Act, KiwiSaver and ERA 2026 obligations.