The living wage isn’t a legal requirement. It’s a voluntary benchmark set by the Living Wage Movement Aotearoa, calculated to cover what a person working full-time needs to meet their basic needs and participate in the community. The current living wage, running from 1 September 2025 to 31 August 2026, is $28.95 per hour, which is $5.00 more than the adult minimum wage of $23.95/hour. From 1 September 2026 the living wage rises to $29.90/hour. Employers who commit to paying all directly employed staff at least the living wage can be accredited by the Living Wage Movement.
The NZ living wage is $28.95/hour (current rate, running from 1 September 2025 to 31 August 2026), rising to $29.90/hour from 1 September 2026.
Current Living Wage Rate (2025/26)
| Wage Type | Rate | 40hrs/week gross | ||
|---|---|---|---|---|
| Living wage | $28.95/hr | $1,158/week | ||
| Adult minimum wage | $23.95/hr | $958/week | ||
| Difference | $5.00/hr | $200/week |
The difference between the living wage and adult minimum wage is $5.00/hr which is a difference of $200/week. Once the living wage increases to $29.90/hr this gap will increase to $238/week based on the current adult minimum wage of $23.95/hr.
How the Living Wage Is Calculated
The Living Wage Movement Aotearoa calculates the living wage annually using a “household reference model”:
The reference household: Two adults, two children. One adult works full-time, one works part-time (20 hours). The calculation aims to cover:
- Housing (median rent for a 2 to 3 bedroom home)
- Food (nutritious diet using supermarket prices)
- Utilities (power, internet, phone)
- Transport (including a modest car)
- Healthcare (GP visits, prescriptions, dental basics)
- Childcare (after Working for Families and 20-hours ECE subsidy)
- Clothing
- A modest recreation/participation allowance
- Contingency savings (10 weeks emergency fund target over 10 years)
Key methodology notes:
- It is a sufficiency measure, not a comfortable or aspirational income
- It is not poverty-line; it is slightly above “getting by”
- It does not account for mortgage payments (rent-based calculation)
- It is updated annually, usually announced in September/October for the following year
The current rate of $28.95/hour applies from 1 September 2025 to 31 August 2026. It rises to $29.90/hour from 1 September 2026, as calculated by the Family Centre Social Policy Research Unit on behalf of Living Wage Aotearoa New Zealand. It’s a rate that sits at roughly 68% of average hourly earnings across NZ. The next full five-yearly review of the calculation methodology is due in 2028; in the intervening years the rate is adjusted in line with wage movements.
Living Wage vs Minimum Wage: History
| Year | Minimum wage | Living wage | Gap |
|---|---|---|---|
| 2018 | $16.50 | $20.55 | $4.05 |
| 2019 | $17.70 | $21.15 | $3.45 |
| 2020 | $18.90 | $22.10 | $3.20 |
| 2021 | $20.00 | $22.75 | $2.75 |
| 2022 | $21.20 | $23.65 | $2.45 |
| 2023 | $22.70 | $26.00 | $3.30 |
| 2024 | $23.15 | $27.80 | $4.65 |
| 2025 | $23.50 | $28.95 | $5.45 |
| 2026 | $23.95 | $29.90 | $5.95 |
The gap narrowed significantly between 2018 and 2022 as the minimum wage rose faster than the living wage calculation. The living wage has risen faster than the minimum wage again, widening the gap to around $5.95/hour.
Note: the minimum wage changes on 1 April each year, while the living wage changes on 1 September, so the two figures shown for the same year take effect at different times.
Who Pays the Living Wage?
Accredited Living Wage Employers
The Living Wage Movement maintains a list of accredited employers. Accreditation requires:
- All directly employed staff paid at least the living wage
- Contractors providing on-site services (cleaners, security, catering) also paid at least the living wage (in many cases)
- Public commitment and annual reporting
Sectors Where Living Wage Is Less Common
- Hospitality and food service
- Retail
- Cleaning and security contracting
- Agriculture and horticulture (often on specific seasonal rates)
- Early childhood education (historically underpaid; improving)
Is $28.95/Hour Actually Enough?
Single person, no children
| City | Monthly take-home at $28.95/hr | Estimated monthly expenses (single, flatting) | Surplus |
|---|---|---|---|
| Auckland (outer suburb) | ~$4,090 | ~$2,800 | ~$1,290 ✓ |
| Wellington (flatting) | ~$4,090 | ~$2,600 | ~$1,490 ✓ |
| Christchurch (flatting) | ~$4,090 | ~$2,200 | ~$1,890 ✓ |
| Queenstown (flatting) | ~$4,090 | ~$3,200 | ~$890 ⚠️ |
A single person at the living wage has a manageable surplus in most NZ cities when flatting. In Queenstown, the margin is thin.
Couple with two children
The living wage model is based on a family reference household. With both adults working (one full-time at $28.95/hr, one part-time at $28.95/hr), combined take-home is approximately $6,220/month, though Auckland housing costs still stretch the budget:
| Category | Monthly cost (Auckland 3-bed) | % of combined income (~$6,220 combined) |
|---|---|---|
| Rent (3-bed outer Auckland) | $2,800 | 45% |
| Groceries | $1,000 | 16% |
| Power + internet | $290 | 5% |
| Childcare (after subsidy) | $800 | 13% |
| Transport | $500 | 8% |
| Healthcare + other | $300 | 5% |
| Total | $5,690 | 91% |
For a family of four in Auckland, the current living wage rate now leaves a modest monthly margin of around $530, an improvement on previous years, but still tight once irregular costs and savings goals are factored in. Families on lower incomes may still rely on Working for Families and the Accommodation Supplement.
Outside Auckland
In Hamilton or Christchurch, the same family has a more realistic budget:
- Rent (3-bed Hamilton): ~$2,200/month
- Total estimated expenses: ~$5,000/month
- Combined income: ~$6,220/month → a surplus of around $1,220/month
The living wage calculation reflects a national average, but Auckland’s housing market makes it significantly harder to achieve the standard of living the rate implies.
Next Steps
- See exact take-home figures: Minimum Wage NZ
- Full worked budget: Living on Minimum Wage NZ
- City cost comparison: Cost of Living NZ Overview
- Check how your wage compares: Average Salary New Zealand