Tuesday, 7 April 2015

NZ Minimum wage rise on April 1

Workplace Relations and Safety Minister recently announced that from April 1 2015:

  • the adult minimum wage will increase from $14.25 to $14.75 an hour
  • the starting-out and training hourly minimum wages will increase from $11.40 to $11.80 an hour.
This is a good time to review your staff wages, budgets and payroll compliance.

5 key questions to ask yourself:
  1. Have you updated your payroll systems and calculations to reflect the higher wage? You’ll need to start using the new minimum wages in calculations from 1 April, even if that is in the middle of a pay cycle.
  2. Do you have employees on the starting-out wage who need to be moved to the adult minimum wage? If your young employees have been with you for six months or longer, or are involved in the training or supervision of other staff, you must pay them at least the adult minimum wage.
  3. Are your employees who are receiving the training minimum wage still in training? If they are no longer in training, and have taken on a full work-load, you must start paying them at least the adult minimum wage.
  4. Have you budgeted for the increase in pay for your minimum wage employees? Use the Employee Cost Calculator to get an idea of how the increase will impact your costs. You can also use the calculator to estimate the costs of hiring a new employee.
  5. Have you recently reviewed the way you are handling wages and deductions to make sure your payroll is compliant? Use the Compliance Matters tool to discover what requirements apply to you and your business.
If you are unsure how much you should be paying your employees or you think you might be paying too little, you can contact the Ministry of Business Innovation and Employment Contract Centre on 0800 20 90 20.

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