A moderate increase is planned.
New Zealand's Workplace Relations and Safety Minister, Brooke van Velden, has announced that the adult minimum wage will rise by 1.5 percent to $23.50 an hour from 1 April 2025. This decision aligns with the government's commitment to modest annual increases in response to current economic conditions.
According to Minister Van Velden, the increase "strikes the right balance" between supporting workers and limiting costs on businesses. The cabinet has also considered the impact of inflation, which has recently returned to its target band for the first time in over three years. Additionally, ensuring employers can continue to grow and provide employment opportunities was a key factor in the decision.
The starting-out and training minimum wage rates will remain at $18.80, 80 percent of the adult minimum wage rate. The Minister aims to give businesses sufficient time to prepare for the change, announcing the increase before Christmas rather than in February as has been the case in previous years.