Minimum Wage NZ 2026
The current New Zealand minimum wage rates, what they add up to each week and year, and what is left after PAYE, ACC, KiwiSaver and student loan deductions.
Current minimum wage rates
Rates in force from 1 April 2026, before tax. Reviewed every year.
Adult
$23.95
16 and over, most employees
Starting-out
$19.16
80% of the adult rate
Training
$19.16
80% of the adult rate
Always confirm the rate in force with Employment New Zealand.
Minimum wage take-home calculator
Enter your rate and hours to see the weekly and annual figures.
Gross a year
$49,816
Take-home a week
$761.06
$1,522.11 a fortnight
Gross a week
$958.00
- PAYE (income tax)
- $7,626 a year
- ACC earner levy
- $872 a year
- KiwiSaver
- $1,744 a year
- Student loan
- $0 a year
Minimum wage by hours worked
On the $23.95 adult rate across 52 weeks, with 3.5% KiwiSaver and no student loan.
| Hours / week | Gross a week | Gross a year | Take-home a week |
|---|---|---|---|
| 20 | $479.00 | $24,908 | $391.03 |
| 30 | $718.50 | $37,362 | $576.04 |
| 37.5 | $898.13 | $46,703 | $714.80 |
| 40 | $958.00 | $49,816 | $761.06 |
Your rights on the minimum wage
The minimum wage applies to every hour you work, however you are paid. Piece rates, commission and salaries all have to average out to at least the minimum wage in each pay period, and time spent on required training or opening up counts as work. It cannot be reduced by deductions for uniforms or tools without your written agreement.
If you are moving above the minimum wage, the pay rise calculator shows how much of the increase you keep. To see how the legal floor compares with the voluntary living wage, or to convert your rate into an annual salary with the hourly to salary calculator, start there.
Minimum wage questions, answered
What is the minimum wage in New Zealand?
The adult minimum wage is $23.95 an hour before tax, in force from 1 April 2026. The starting-out and training minimum wages are $19.16 an hour, which is 80% of the adult rate. Rates are reviewed every year and take effect on 1 April.
How much is the minimum wage a year?
On the $23.95 adult rate, 40 hours a week over 52 weeks is $49,816 gross a year. On 37.5 hours it is $46,703, and on 30 hours it is $37,362. Take-home pay is lower once PAYE, the ACC earner levy, KiwiSaver and any student loan repayment are deducted.
Who can be paid the starting-out or training minimum wage?
The starting-out rate can apply to some 16 and 17 year olds in their first six months with an employer, 18 and 19 year olds who have been on certain benefits, and 16 to 19 year olds in an approved training programme of at least 40 credits a year. The training rate applies to employees aged 20 and over doing at least 60 credits a year of approved industry training.
Is the minimum wage the same as the living wage?
No. The minimum wage is the legal pay floor set by the Government. The living wage is a voluntary, independently calculated rate that accredited employers choose to pay, and it is always higher.
Does the minimum wage apply to salaried employees?
Yes. If your salary divided by the hours you actually work falls below the minimum wage for any pay period, your employer is breaching the Minimum Wage Act. Long unpaid hours are the usual cause.
Do minimum wage earners pay tax in New Zealand?
Yes. There is no tax-free threshold here, so PAYE applies from the first dollar at 10.5%, plus the ACC earner levy. KiwiSaver and student loan deductions apply if they are relevant to you.
Your minimum wage rights, and where employers get it wrong
The adult rate of $23.95 an hour over a 40-hour week is $49,816 a year before tax. That figure is a legal floor for almost everyone, not a starting point for negotiation — and it applies per hour worked, however your pay is dressed up.
- A salary still has to clear the floor every pay period. Being on a salary does not remove the minimum wage. Divide your pay for the period by the hours you actually worked — if a busy fortnight of 50-hour weeks pushes that below $23.95, your employer is underpaying you even though the annual salary looks fine.
- The starting-out and training rates are narrow. They are not a general "young worker" discount. They apply only to specific groups — certain 16 and 17 year olds in their first months of employment, 18 and 19 year olds who have been on a benefit, and trainees doing a set volume of credits in an industry training programme. Outside those situations the adult rate applies whatever your age.
- Deductions cannot push you under the minimum. Uniforms, tools, till shortages and breakages cannot be taken out if the result is less than the minimum wage for the hours you worked, and deductions generally need your written consent.
- Unpaid trial shifts are not legal. If you are doing productive work — serving customers, stocking shelves, taking orders — you must be paid at least the minimum wage for that time. Observing without working is different from working for free.
- Time you are required to be there is usually paid time. Compulsory pre-shift briefings, cashing up after close, and being required to stay on site during a break generally count as work. Unpaid rest breaks are the exception, and they have their own statutory rules.
If your hourly rate sits between the minimum and the voluntary living wage, the gap is worth quantifying before your next pay review — the difference over a full year is usually thousands, not cents.
How we calculate this
This page states the current New Zealand minimum wage rates and shows what they are worth after tax at common weekly hours. Every figure on this page is worked out in your browser from the rates listed below — nothing you type is sent anywhere or stored.
- 1Start from the MBIE-published adult, starting-out and training rates.
- 2Multiply by weekly hours to get gross weekly and annual pay.
- 3Apply PAYE, ACC and KiwiSaver to that gross figure.
- 4Show the net weekly and annual result for 20, 30 and 40 hour weeks.
- 5Compare the outcome with the living wage rate.
Rates and thresholds in use
- Income tax bands: $0–$15,600 at 10.50%; $15,600–$53,500 at 17.50%; $53,500–$78,100 at 30.00%; $78,100–$180,000 at 33.00%; over $180,000 at 39.00%.
- ACC earners' levy: 1.75% of liable earnings.
- Student loan: 12% of every dollar earned above $24,128 a year.
- KiwiSaver employee rates: 3.5% by default, or 4%, 6%, 8% or 10% of gross pay; a temporary reduction to 3% is available.
Last reviewed August 2026 by the Payrise NZ team. We re-check these settings whenever Inland Revenue, MBIE or ACC announce a change, and update this page the same week.
Sources: Employment New Zealand — minimum wage.
Related NZ pay and tax calculators
Keep going with the rest of the toolkit — each one uses the same up-to-date New Zealand tax settings.
- Living Wage NZThe living wage rate versus the minimum wage, side by side.
- Hourly to Salary ConverterConvert an hourly rate to an annual salary and back again.
- After-Tax Pay CalculatorTurn a gross salary into weekly, fortnightly and monthly take-home pay.
- Pay Rise CalculatorSee exactly how much of a pay rise you keep after every deduction.