Minimum Wage Act

On April 1, 2008 the minimum wage for employees aged 18 years and over increased to a total of $12 an hour before tax.  It also means that there will no longer be a youth minimum wage in the Act instead the “standard minimum wage” will now apply to workers aged 16 years and over (on certain conditions).

A “New Entrants” rate has also been established which will apply to other employees, especially considering young people aged 16 or 17, as there is no longer a minimum wage rate for youth.  This New Entrant Rate will consist of 80% of the standard rate ($9.60).

Furthermore from 1 April 2008 the training rate also increased and accounts now to $9.60 an hour before tax which accounts for $384 for a 40 Hour week. This rate will apply to all people doing recognised industry training (this means at least 60 credits a year are involved).

By law you are entitled to be paid at least the minimum wage, even if paid by commission or piece rate. Holiday pay is paid in addition to this minimum wage.

To establish if you fall under the New Entrant or standard rate the following points are important to consider. A new entrant is a worker aged 16 or 17 and has not

• completed 3 months or 200 hours of employment (whichever is shorter)
• been supervising or training other workers
• been /is not subject to the minimum training wage

In case you are unsure if you have completed the amount of work mentioned above, check out the Department of Labour website for further information on minimum wage in New Zealand.

(http://www.ers.dol.govt.nz/pay/minimum.html, http://www.ers.dol.govt.nz/pay/background.htm)