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 2026 to 31 August 2027, is $29.90 per hour, which is $5.95 more than the adult minimum wage of $23.95/hour. The previous rate, which ran from 1 September 2025 to 31 August 2026, was $28.95/hour. Employers that pay all their directly employed staff, and the contractors’ workers who provide them with regular, ongoing services, at least the living wage can be accredited by the Living Wage Movement.
The NZ living wage is $29.90/hour (current rate, running from 1 September 2026 to 31 August 2027), up from $28.95/hour the previous year.
Current Living Wage Rate (2026/27)
| Wage Type | Rate | 40hrs/week gross |
|---|---|---|
| Living wage | $29.90/hr | $1,196/week |
| Adult minimum wage | $23.95/hr | $958/week |
| Difference | $5.95/hr | $238/week |
The difference between the living wage and adult minimum wage is $5.95/hr, a difference of $238/week. A year earlier the gap was $5.45/hr ($218/week), between a $28.95/hr living wage and a $23.50/hr minimum wage. It has widened because the living wage rose $0.95/hr on 1 September 2026 while the adult minimum wage rose only $0.45/hr on 1 April 2026.
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 (lower-quartile rent for a 3-bedroom home, from Tenancy Services bond data)
- Food (nutritious diet using supermarket prices)
- Utilities (power, internet, phone)
- Transport (including a modest car)
- Healthcare (GP visits, prescriptions, dental basics)
- Education, including early childhood education
- Clothing
- A modest recreation/participation allowance
- Other spending: a modest allowance for savings, non-mortgage interest and koha
The calculation then allows for income tax, the ACC levy, KiwiSaver, Working for Families tax credits and the Accommodation Supplement to work out the gross income the household needs.
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: the new rate is announced in early April and takes effect on 1 September
The current rate of $29.90/hour applies from 1 September 2026 to 31 August 2027, up from $28.95/hour the year before, as calculated by the Family Centre Social Policy Research Unit on behalf of Living Wage Aotearoa New Zealand. The calculation is fully reviewed every five years (most recently in 2023, so the next review is due in 2028); in the years between, the rate moves in line with average ordinary time hourly earnings from Stats NZ’s Quarterly Employment Survey.
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
- Workers employed by contractors to provide regular, ongoing services (for example cleaners, security and catering staff) also on the living wage, or on an agreed plan to phase it in
- A signed accreditation licence, with each new living wage rate applied within five months of its release
- Trainees can be paid 90% of the living wage for their first 12 months (or 1,040 hours, if less), and apprentices are exempt because their pay is set by government rules
Is $29.90/Hour Actually Enough?
Single person, no children
| City | Monthly take-home at $29.90/hr | Estimated monthly expenses (single, flatting) | Surplus |
|---|---|---|---|
| Auckland (outer suburb) | ~$4,185 | ~$2,800 | ~$1,385 ✓ |
| Wellington (flatting) | ~$4,185 | ~$2,600 | ~$1,585 ✓ |
| Christchurch (flatting) | ~$4,185 | ~$2,200 | ~$1,985 ✓ |
| Queenstown (flatting) | ~$4,185 | ~$3,200 | ~$985 ⚠️ |
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 $29.90/hr, one part-time at $29.90/hr), combined take-home is approximately $6,370/month before any Working for Families tax credits, though Auckland housing costs still stretch the budget:
| Category | Monthly cost (Auckland 3-bed) | % of combined income (~$6,370 combined) |
|---|---|---|
| Rent (3-bed house, Manurewa median $630/week, Feb–Jul 2026) | $2,730 | 43% |
| Groceries | $1,000 | 16% |
| Power + internet | $290 | 5% |
| Childcare (after subsidy) | $800 | 13% |
| Transport | $500 | 8% |
| Healthcare + other | $300 | 5% |
| Total | $5,620 | 88% |
For a family of four in Auckland, the current living wage rate leaves a modest monthly margin of around $750, which is 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 house in Frankton, Nawton, Melville or Fairfield, suburb medians $520–$550/week in February–July 2026): ~$2,383/month at $550
- Total expenses with the other costs from the Auckland table ($2,890): ~$5,273/month
- Combined income: ~$6,370/month → a surplus of around $1,097/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