The New Zealand adult minimum wage increased to $23.50 per hour on 1 April 2026, up from $23.15/hour in 2025. This applies to all employees aged 16 and over who have completed their first 200 hours of employment (or six months in the job). For a full-time worker on 40 hours per week, that’s $940 gross per week — but take-home pay after PAYE and ACC is significantly less.
From 1 April 2026: Adult minimum wage = $23.50/hr. Full-time (40hrs/week) gross = $940/week ($48,880/year). After PAYE tax and ACC levy, take-home pay is approximately $803/week or $3,480/month. The starting-out and training rates are both $18.80/hr (80% of the adult rate).
Current Minimum Wage Rates (from 1 April 2026)
| Rate | Per hour | Per week (40 hrs) | Per year | Take-home (approx/month) |
|---|---|---|---|---|
| Adult minimum wage | $23.50 | $940.00 | $48,880 | ~$3,480 |
| Starting-out rate | $18.80 | $752.00 | $39,104 | ~$2,820 |
| Training rate | $18.80 | $752.00 | $39,104 | ~$2,820 |
What Each Rate Applies To
Adult minimum wage ($23.50/hr): All employees aged 16+ who have completed 200 hours or six months in their current employment — whichever comes first.
Starting-out rate ($18.80/hr): Applies to:
- 16–17 year olds in their first six months of employment with a new employer
- 18–19 year olds who have been on a benefit for six months or more, in their first six months with a new employer
Training rate ($18.80/hr): Applies to employees aged 20+ who are required by their employment agreement to undertake industry training of at least 60 credits per year.
Take-Home Pay Calculations
NZ take-home pay is reduced by:
- PAYE income tax — calculated progressively on income
- ACC earner levy — 1.60 cents per dollar of liable earnings (2026 rate)
- KiwiSaver — optional but 3% is standard (employer also contributes 3%)
Adult Minimum Wage — Weekly Take-Home
| Hours/week | Gross/week | PAYE + ACC (approx.) | KiwiSaver 3% | Take-home/week |
|---|---|---|---|---|
| 20 hrs (part-time) | $470 | ~$60 | ~$14 | ~$396 |
| 32 hrs | $752 | ~$108 | ~$23 | ~$621 |
| 40 hrs (full-time) | $940 | ~$123 | ~$28 | ~$789 |
| 45 hrs | $1,058 | ~$147 | ~$32 | ~$879 |
Note: Take-home figures exclude KiwiSaver employee contribution (3%); that money is yours — it goes to your KiwiSaver account, not lost. The figures above show cash-in-hand if enrolled in KiwiSaver at 3%.
Without KiwiSaver: Take-home at 40hrs = ~$817/week (~$3,540/month)
Annual Income at Minimum Wage
| Scenario | Gross/year | Approx. tax + ACC | Net/year | Net/month |
|---|---|---|---|---|
| 20hrs, 52 weeks | $24,440 | ~$3,100 | ~$21,340 | ~$1,778 |
| 40hrs, 52 weeks | $48,880 | ~$7,040 | ~$41,840 | ~$3,487 |
| 40hrs, 46 weeks (annual leave) | $48,880 | ~$7,040 | ~$41,840 | ~$3,487 |
Note: Annual leave (4 weeks) is paid in NZ — full-time minimum wage workers still receive 4 weeks’ paid leave per year.
Minimum Wage History (2018–2026)
| Year (April) | Adult rate | Starting-out / training | Annual % increase |
|---|---|---|---|
| 2018 | $16.50 | $13.20 | — |
| 2019 | $17.70 | $14.16 | +7.3% |
| 2020 | $18.90 | $15.12 | +6.8% |
| 2021 | $20.00 | $16.00 | +5.8% |
| 2022 | $21.20 | $16.96 | +6.0% |
| 2023 | $22.70 | $18.16 | +7.1% |
| 2024 | $23.15 | $18.52 | +2.0% |
| 2025 | $23.15 | $18.52 | 0% (no increase) |
| 2026 | $23.50 | $18.80 | +1.5% |
The rapid increases from 2018–2023 were driven by Labour government policy; 2024 and 2025 saw smaller increases reflecting inflation concerns and business pressure. The 2026 increase of 1.5% is below CPI inflation, meaning a real terms cut in purchasing power.
Minimum Wage vs Living Wage
| Measure | Rate (2026) | 40hr/week gross | Annual gross |
|---|---|---|---|
| Minimum wage | $23.50/hr | $940/week | $48,880 |
| Living wage | $26.00/hr | $1,040/week | $54,080 |
| Difference | $2.50/hr | $100/week | $5,200/year |
The living wage ($26.00/hour) is calculated to cover a basic but adequate standard of living in NZ. The $5,200/year gap between minimum and living wage is meaningful — that’s roughly 2 months of groceries for a couple.
Is the NZ Minimum Wage Enough to Live On?
The short answer: barely, outside the main cities — and not at all if renting alone in Auckland or Wellington.
At $803/week take-home:
- A room in a shared flat in South Auckland costs $800–$1,000/month → possible
- A one-bedroom apartment in Auckland CBD at $2,000–$2,200/month → impossible (rent alone = 70% of income)
- A room in a Wellington flat at $950–$1,200/month → tight but possible with careful budgeting
- A room in Christchurch or Hamilton at $700–$900/month → manageable with surplus
For full worked budgets, see Living on Minimum Wage NZ.
Employer Obligations
Employers must:
- Pay at least the applicable minimum wage rate for all hours worked
- Keep accurate time and wage records
- Pay for all time worked, including short breaks if not provided
- Apply the starting-out/training rate correctly — misclassification is a common breach
The Labour Inspectorate (part of MBIE) investigates minimum wage complaints. Employees can also raise issues with Employment New Zealand or pursue a personal grievance through the Employment Relations Authority.
Exceptions: Some employees with disabilities may be paid a special minimum wage rate under an exemption — contact Employment New Zealand for details.
Next Steps
- Use the PAYE calculator to calculate exact take-home pay at any income level
- See Living Wage NZ for the benchmark above minimum
- See Living on Minimum Wage NZ for a full worked monthly budget
- Compare your wage to NZ averages: Average Salary New Zealand