Let’s talk real money, folks. The NZ Minimum Wage Hike 2025 just kicked in, and if you’re flipping burgers, cleaning offices, stocking shelves, or grinding through a trade apprenticeship, you’re about to see a bit more cash in your paycheck. Whether you’re a high school student in your first gig or a small business owner reviewing payroll, here’s everything you need to know about this year’s wage update—straight talk, no fluff.
New Zealand has officially bumped up the minimum wage starting April 1, 2025, and while it might not seem like a huge leap, the change means more than $700 extra per year for full-time workers. Let’s break it all down, answer your burning questions, and help you understand what this means for your wallet and career.
NZ Minimum Wage Hike 2025
| Feature | Details |
|---|---|
| New Adult Minimum Wage | NZ$23.50/hour (up from $23.15) |
| Starting-out & Training Wage | NZ$18.80/hour (up from $18.52) |
| Effective Date | April 1, 2025 |
| Weekly Increase (Full-time) | ~NZ$14 more per week (before tax) |
| Annual Increase (Full-time) | ~NZ$730 more per year (before tax) |
| Number of Workers Affected | ~141,900 people |
| Official Resource | MBIE Minimum Wage 2025 |
Whether you’re pulling shots at a cafe, stocking shelves at a warehouse, or sweeping floors after school, every extra dollar counts. This 2025 minimum wage hike might not be huge, but it matters. For employers, staying compliant isn’t just a legal thing — it’s a trust thing.
What Changed in 2025?
Adult Minimum Wage: Small Bump, Big Impact
The adult minimum wage is now set at NZ$23.50/hour, up from NZ$23.15. That’s a 1.5% increase, which might sound small, but when you do the math, it adds up. For a full-time worker clocking 40 hours a week, that’s an extra NZ$14 per week or about NZ$730 per year.
Starting-out & Training Wages
The starting-out and training minimum wage also increased from NZ$18.52 to NZ$18.80/hour, staying at 80% of the adult wage. If you’re just starting your first job or going through a trade apprenticeship, you’re still getting a bump.
Who Does This Affect?
This isn’t just for teens or part-timers. Here’s who this change touches:
- Full-time minimum wage workers
- Part-time and casual staff
- Young people (16-19 years old) in starter roles
- Apprentices and trainees
- Employers who need to stay compliant and adjust payroll
Real-Life Example:
Jade works 40 hours/week at a cafe in Auckland. In 2024, she earned NZ$926/week. In 2025, she earns NZ$940/week. That’s nearly NZ$60 extra every month before taxes — enough to cover a week of groceries or save toward a rainy day fund.
Why the Increase?
The government sets the wage each year after reviewing:
- Cost of living (hello, inflation!)
- Business impacts
- Economic growth trends
- Public feedback & union input
According to Employment Minister Brooke van Velden, this moderate hike helps balance inflation and business sustainability. It’s the smallest wage hike since the 1990s, but it still puts more cash into workers’ hands.
What Should Employers Do?
If you run a business, you need to:
- Update payroll systems by April 1, 2025
- Adjust employment agreements and notify staff in writing
- Recalculate budgets, including holiday pay and KiwiSaver
- Review wage relativity (your higher-paid workers may expect increases too)
What If You’re Earning the Living Wage?
The Living Wage is what’s considered a fair income for a decent standard of living. In 2025, it’s hovering around NZ$27-28/hour, according to Living Wage Aotearoa. That’s still a few bucks above the minimum wage. So while the hike helps, there’s still a gap.
Pro tip: If you’re earning minimum wage but doing high-responsibility work, ask about moving up the pay scale.
A Quick Breakdown: Wage Categories
Adult Minimum Wage (NZ$23.50/hour)
- Age 16+
- No longer in training or starter category
- Includes workers who supervise or train others
Starting-Out Wage (NZ$18.80/hour)
- 16-17 years old (less than 6 months with employer)
- 18-19-year-olds who were on benefit and are new to job
Training Wage (NZ$18.80/hour)
- 20+ years old
- Must be in formal industry training (e.g., apprenticeship)
FAQs
Q1: Does every worker get this raise?
A: Only if you’re earning below the new minimums. If you already make more, your pay won’t change unless your employer adjusts everyone’s wages.
Q2: When does the new wage start?
A: April 1, 2025. Any hours worked from that day onward must be paid at the new rate.
Q3: Can an employer pay less than the minimum wage?
A: Nope. That’s illegal in New Zealand unless you’re on a valid exemption (which is rare).
Q4: What if I’m underpaid?
A: Talk to your boss first. Still not sorted? Reach out to Employment NZ or call 0800 20 90 20.
Q5: Can a business afford this?
A: That’s the tightrope. While it adds cost, the modest increase was chosen to avoid overburdening small businesses while still helping workers.
