The 2025/26 New Zealand Living Wage has been set at $28.95 per hour, a $1.15 increase that aligns with a 4.2% rise in New Zealand’s average hourly wage.

Effective from 1 September 2025, employees and contracted workers of accredited Living Wage Employers will earn at least $5.45 per hour more than the minimum wage.

The New Zealand Living Wage is independently calculated and updated annually by the Family Centre Social Policy Research Unit. It represents "the income necessary to provide workers and their families with the basic necessities of life, enabling workers to live with dignity and participate as active citizens in society."

The new rate, $28.95 per hour, is approximately 68% of the average hourly earnings in New Zealand.

“The Living Wage has made a real difference to workers for over a decade now,” says Gina Lockyer, Executive Director of Living Wage Aotearoa NZ.

“For many workers and their families, it’s the difference between being able to make ends meet or falling behind. It’s being able to afford school uniforms and medical expenses. It means not having to decide between doing a grocery shop or paying the power bill”

Living Wage Aotearoa NZ offers accreditation to businesses and organisations that commit to paying at least the Living Wage to their staff and contracted workers.

342 businesses across various industries—including hospitality, finance, and retail—are accredited Living Wage Employers.

As well as paying the Living Wage to their direct employees, accredited Living Wage Employers must add Living Wage requirements in procurement contracts.

This means anyone delivering a regular ongoing service is also paid the Living Wage.

“A Living Wage requirement in procurement is the most effective way to pay everyone in the workplace fairly, even if their work is outsourced,” says Gina.

“This distinction has lifted thousands of low-waged workers out of poverty and recognised the valuable and essential roles they fulfil.”

Concern over government procurement changes

A proposal to scrap the Living Wage requirement in government procurement raises concerns about the future of government cleaners, security guards, and catering staff.

“If the changes go ahead, these workers will miss out on the new Living Wage rate, and any future increases” says Gina.

“The Government has two choices – a Living Wage that improves community outcomes and service delivery, or hardship for the people who keep their agencies safe, healthy, and secure.”

In a recent poll of over 1000 voters, 62% opposed removing living wage requirements in Government procurement, compared to 23% who supported removing them.

Additional information about the 2025/26 Living Wage Rate

The 2025/26 rate has been updated based on wage changes reported in Stats NZ’s Quarterly Employment Survey (QES). The 4.2% increase reflects wage movement for the year ending December 2024.

Every year, the Living Wage rate is independently updated by the Family Centre Social Policy Research Unit.

Living Wage Aotearoa NZ is notified of the new rate by the Family Centre.

Our job is to share the new rate and inform accredited Living Wage Employers of their responsibilities to meet the Living Wage Employer criteria.

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