New Zealand’s adult minimum wage will rise 2 per cent to $23.95 an hour from 1 April 2026.

Workplace Relations and Safety Minister Brooke van Velden announced the change, saying it reflects the Government’s agreement to keep annual minimum wage increases moderate as part of the NZ First–National coalition commitment.

“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 says.

Ms van Velden says the decision comes at a tough time for many employers, and that the Government is aiming for “recovery and relief” through what she calls responsible economic management.

Workplace Relations and Safety Minister Brooke van Velden.

She links the move to wider goals of growing the economy, boosting incomes and supporting people in jobs across the country.

The increase is intended to help minimum wage workers keep pace with the cost of living, with inflation projected to remain relatively stable at around 2 per cent from June 2026.

Youth unemployment and wage compression were both considered in this year’s decision.

“Past minimum wage increases have driven wage compression, reducing the differentiation in pay between workers based on skills, experience or performance,” she says, adding that recent moderate rises have started to ease this trend and support young people into entry level jobs.

Starting-out and training minimum wage rates will be set at $19.16, remaining at 80 per cent of the adult rate when the change takes effect on 1 April 2026.

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