New Zealand’s minimum wage increase to N32,000 per hour

New Zealand’s government has announced an increase to the national minimum wage, set to take effect on April 1, 2026. The decision follows the government’s annual review and aims to support low-income workers across the country.

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The Ministry of Business, Innovation and Employment confirmed the adjustment, stating that it is designed to help workers cope with the cost of living while mitigating significant cost burdens on businesses.

Brooke van Velden, the Minister for Workplace Relations and Safety, emphasized the balanced approach behind the decision. “This new rate will benefit around 122,500 working New Zealanders and strikes a balance between keeping up with the cost of living and not adding further pressure on the costs of running businesses,” she stated.

Effective from April 2026, the adult minimum wage will rise by 45 cents to $23.95 per hour. Correspondingly, the training and starting-out minimum wages will be adjusted to $19.16 per hour, maintaining the rate at 80% of the adult minimum wage. These changes will primarily impact employees currently earning below the new thresholds, including those in entry-level positions.

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For a full-time employee working a 40-hour week on the adult minimum wage, this increase translates to an additional $18 per week, or approximately $936 annually before tax.

This wage hike is part of a broader strategy to position New Zealand as an attractive destination for international workers, students, and professionals.

The government anticipates that higher wages will enhance income stability for both domestic and foreign workers, strengthening the country’s appeal for immigration.

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The minimum wage, which is reviewed annually, applies to all legally employed workers aged 16 and over, regardless of their industry or region. The policy is one of several recent government initiatives aimed at bolstering the labour market and attracting global talent. Other reforms include expanding the international education sector, relaxing work-hour limits for students, and introducing new visa categories for investors and digital nomads.