Workers on the minimum wage will soon see a two percent bump in their hourly wage, taking effect next April.
The adult minimum wage rate will increase by two percent to NZD 23.95 an hour from 1 April 2026, Workplace Relations and Safety Minister Brooke van Velden announced.
This increase reflects the Government’s agreement to moderate increases to the minimum wage each year 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,” said van Velden.
“I know those pressures have made it a tough time to do business, which is why we have taken this balanced approach. With responsible economic management, recovery and relief are coming.”
“I am pleased to deliver this moderate increase to the wage that reflects this Government’s commitment to growing the economy, boosting incomes and supporting Kiwis in jobs throughout New Zealand.”
Van Velden said the increase aimed to help minimum wage workers keep up with the cost of living, with inflation projected to remain relatively stable at around two percent from June 2026.
Youth unemployment and impacts on wage compression were two considerations when setting this year’s minimum wage.
“Past increases have driven wage compression, reducing the differentiation in pay between workers based on skills, experience or performance. The moderate increases agreed to by this Government for the 2024 and 2025 minimum wage decisions have started to ease this trend,” she said.
“It is also important that minimum wage rates support young people to gain employment. Young people are much more likely than other population groups to earn at or below the adult minimum wage rate. Ensuring a balanced minimum wage rate enables young people to have access to entry-level jobs that can set them up for greater future success.”
The starting-out and training rates will be set at NZD 19.16, to remain at 80 percent of the adult minimum wage.
“This Government is committed to making changes that grow the economy and create opportunities for all New Zealanders.”
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