The New Zealand adult minimum wage increased to $23.95 per hour on 1 April 2026, up from $23.50/hour in 2025. It applies to employees aged 16 and over who don’t qualify for the starting-out or training rate (for example, 16- and 17-year-olds move to the adult rate after six months with the same employer). For a full-time worker on 40 hours per week, that’s $958 gross per week, but take-home pay after PAYE and ACC is significantly less.
From 1 April 2026: Adult minimum wage = $23.95/hr. Full-time (40hrs/week) gross = $958/week ($49,816/year). After PAYE tax and ACC levy, take-home pay is approximately $795/week or $3,443/month (before KiwiSaver deductions). The starting-out and training rates are both $19.16/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 | $23.95 | $958.00 | $49,816 | ~$3,443 |
| Starting-out rate | $19.16 | $766.40 | $39,853 | ~$2,773 |
| Training rate | $19.16 | $766.40 | $39,853 | ~$2,773 |
What Each Rate Applies To
Adult minimum wage ($23.95/hr): All employees aged 16 or over who don’t qualify for the starting-out or training rate.
Starting-out rate ($19.16/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
- 16–19 year olds whose employment agreement requires them to do at least 40 credits a year of industry training
Training rate ($19.16/hr): Applies to employees aged 20+ who are required by their employment agreement to undertake industry training of at least 60 credits per year.
Neither the starting-out nor the training rate can be paid to an employee whose job includes supervising or training other workers; they must get at least the adult rate. The training rate also needs an approved industry training programme: being trained on the job by your employer doesn’t count.
Take-Home Pay Calculations
NZ take-home pay is reduced by:
- PAYE income tax — calculated progressively on income
- ACC earner levy: 1.75 cents per dollar of liable earnings (2026/27 rate, up from 1.67c in 2025/26)
- KiwiSaver — optional but 3.5% is the standard minimum employee rate (employer also contributes at least 3.5%). You can apply for a temporary rate reduction to keep contributing 3% for 3 to 12 months at a time, and your employer can then choose to match it at 3%.
Adult Minimum Wage — Weekly Take-Home
| Hours/week | Gross/week | PAYE + ACC (approx.) | KiwiSaver 3.5% | Take-home/week |
|---|---|---|---|---|
| 20 hrs (part-time) | $479 | ~$71 | ~$17 | ~$391 |
| 32 hrs | $766 | ~$127 | ~$27 | ~$613 |
| 40 hrs (full-time) | $958 | ~$163 | ~$34 | ~$761 |
| 45 hrs | $1,078 | ~$193 | ~$38 | ~$847 |
Note: Take-home figures exclude KiwiSaver employee contribution (3.5%); that money is yours — it goes to your KiwiSaver account, not lost. The figures above show cash-in-hand if enrolled in KiwiSaver at 3.5%.
Without KiwiSaver: Take-home at 40hrs = ~$795/week (~$3,443/month), or about $805/week if you qualify for the $520-a-year independent earner tax credit (IETC)
Annual Income at Minimum Wage
| Scenario | Gross/year | Approx. tax + ACC | Net/year | Net/month |
|---|---|---|---|---|
| 20hrs, 52 weeks | $24,908 | ~$3,703 | ~$21,205 | ~$1,767 |
| 40hrs, 52 weeks | $49,816 | ~$8,498 | ~$41,318 | ~$3,443 |
| 40hrs, 46 weeks (annual leave) | $49,816 | ~$8,498 | ~$41,318 | ~$3,443 |
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 | $23.50 | $18.80 | +1.5% |
| 2026 | $23.95 | $19.16 | +1.9% |
Increases from 2018 to 2023 ranged from 5.8% to 7.3% a year; the three increases since 2024 have each been 2.0% or less. The 2026 increase of 1.9% is below the 2026 CPI inflation rate (running at 3.1–4.1% through the year), meaning a real terms cut in purchasing power.
Minimum Wage vs Living Wage
| Measure | Rate (2026) | 40hr/week gross | Annual gross |
|---|---|---|---|
| Minimum wage | $23.95/hr | $958/week | $49,816 |
| Living wage | $29.90/hr | $1,196/week | $62,192 |
| Difference | $5.95/hr | $238/week | $12,376/year |
The living wage ($29.90/hour, current from 1 September 2026) is calculated to cover a basic but adequate standard of living in NZ. The $12,376/year gap between minimum and living wage is substantial: it’s nearly 10 months’ rent for a room in a flat at the national median room rent ($290/week for bonds lodged April to June 2026, Tenancy Services).
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 about $795/week take-home (about $3,443/month, no KiwiSaver), measured against Tenancy Services median rents for new bonds:
- A room in a flat: the national median was $290/week (about $1,257/month) for April to June 2026, around 37% of take-home → possible
- A place of your own in Auckland: the median across all property types was $640/week (about $2,773/month) in July 2026, around 81% of take-home → impossible on one income
- A place of your own in Christchurch: the median was $550/week (about $2,383/month) in July 2026, around 69% of take-home → very stretched on one income
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
- Only pay the starting-out or training rate to employees who meet its conditions
The Labour Inspectorate (part of MBIE) investigates minimum wage complaints. Employees can also raise issues with Employment New Zealand on 0800 20 90 20, and claims for unpaid wages (arrears) can go back six years.
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