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New Zealand Minimum Wage Rate & KiwiSaver Update

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By Chao Ni, Associate, Mason Sier Turnbull

Minimum Wage Rate Update

The national minimum wage rate is a safety net which provides a minimum base rate of pay for all employees in New Zealand.

Currently, the national minimum wage rates in New Zealand are:

  • $13.50 per hour for employees aged 16 and over who are not new entrants* or trainees**.
  • $10.80 per hour for new entrants* and trainees**.

As of 1 April 2013, the national minimum wage rates are set to increase to:

  • $13.75 per hour for employees aged 16 and over who are not new entrants* or trainees**.
  • $11.00 per hour for new entrants* or trainees**.

*New entrants are employees who:

  • are aged between 16 and 17
  • have not worked for more than 200 hours or three months, whichever is less
  • are not supervising or training other workers.

**Trainees are employees who are:

  • aged 16 and over
  • undertaking recognised industry training involving at least 60 credits per year.

It is important for all New Zealand employers to ensure that they are meeting their minimum wage obligations to avoid breaching New Zealand employment laws.

KiwiSaver Update

KiwiSaver is a government scheme that aims to encourage long term saving and asset accumulation.  KiwiSaver contributions are deducted from an employee’s gross pay and paid to a KiwiSaver Provider.

Currently, the minimum employer contribution rate is 2%.   As of 1 April 2013, the minimum employer contribution rate increases from 2% to 3%.

This will require employers to increase their contributions (except where already contributing at or above 3%).

For more information in relation to the above, please contact one of MST’s experienced Workplace Relations lawyers on (03) 8540 0200.