The adult minimum wage in New Zealand is set to rise by 1.5 per cent to $23.50 an hour from 1 April 2025, Workplace Relations and Safety Minister Brooke van Velden announced today.

This increase aligns with the NZ First-National coalition’s commitment to introducing moderate annual adjustments to the minimum wage, reflecting the current economic climate and labour market conditions.

“The New Zealand economy is still recovering from a sustained period of high interest rates and recessionary conditions.

In that context, delivering a modest increase in the minimum wage strikes the right balance between supporting workers and limiting further costs on business,” said van Velden.

According to the Minister, inflation has now returned to the Reserve Bank’s target band for the first time in over three years.

She noted that this progress played a role in determining the wage adjustment.

The starting-out and training minimum wage rates will also see changes, remaining at 80 per cent of the adult minimum wage.

From 1 April 2025, these rates will be set at $18.80 per hour.

Van Velden highlighted the impact of the wage increase on younger workers, who make up a significant portion of minimum-wage earners.

“It is important to ensure they are not locked out of jobs as the minimum wage rises. The experience and life skills that young workers can gain in these minimum wage jobs can set them up for greater future prosperity and success,” she said.

She also emphasised the benefits of an early announcement, giving businesses time to adapt.

“The past three minimum wage announcements have been made in February of the year the increase came into force, leaving businesses only two months to prepare for the change. I am pleased to make this announcement prior to Christmas, to give employers the time needed to make any necessary changes to payroll systems.”

The Government expressed its intention to support job growth while ensuring that employers are not overburdened by a disproportionate increase in labour costs.

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