Hon Brooke van Velden
Minister for Workplace Relations and Safety

The adult minimum wage rate will increase by 1.5 percent to $23.50 an hour from 1 April 2025, Workplace Relations and Safety Minister Brooke van Velden announced today.

This minimum wage increase meets the NZ First-National coalition commitment to moderate increases to the minimum wage every year. Cabinet’s decision reflects the current economic climate and labour market conditions.

“The New Zealand economy is still recovering from a sustained period of high interest rates and recessionary conditions. In that context, delivering a modest increase in the minimum wage strikes the right balance between supporting workers and limiting further costs on business,” says Ms van Velden.

“This increase also reflects the significant progress the Government has now made on inflation, which has now returned to the Reserve Bank’s target band for the first time in more than three years.

“Supporting the Government’s objective to reduce the number of people on the Jobseeker Support benefit was also a priority. To do this, we need to ensure employers and businesses can continue to grow and provide employment opportunities – which could be put at risk with a disproportionate increase in the minimum wage.

“Young people are more likely than other demographic groups to be earning the minimum wage, and it is important to ensure they are not locked out of jobs as the minimum wage rises. The experience and life skills that young workers can gain in these minimum wage jobs can set them up for greater future prosperity and success.

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“The past three minimum wage announcements have been made in February of the year the increase came into force, leaving businesses only two months to prepare for the change. I am pleased to make this announcement prior to Christmas, to give employers the time needed to make any necessary changes to payroll systems.”

The starting-out and training minimum wage rates will be set at $18.80, to remain at 80 per cent of the adult minimum wage.

Note:

The Minister for Workplace Relations and Safety is required by law to review the minimum wages annually, to take effect 1 April each year by Order in Council.

More information can be found here: Minimum wage reviews | Ministry of Business, Innovation & Employment (mbie.govt.nz)

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