2020 Minimum Wage Increase

Kāpiti Business – The Minimum Wage increase kicks in from April 1.

On April 1 the adult minimum wage increases $1.20 to $18.90 an hour – an additional $48 per week before tax for an employee working a 40 hour week.

Employment expert Julia Palmer of Star People in Kāpiti says Employers will need to remember to adjust their payroll.

“Starting out and trainee rates continue to be at 80% of the minimum wage and increase to $15.12 an hour.

“The Government are looking to increase the adult minimum wage incrementally to reach $20 an hour in 2021,” says Ms Palmer.

According to the Government’s figures, 242,000 workers will see increased wages.

Workplace Relations and Safety Minister Iain Lees-Galloway says the New Zealand economy currently has a solid footing.

“With our economy doing well, we want to make sure that our lowest paid workers also benefit.”

He says the rise in the minimum wage is estimated to boost wages by $306 million a year across the economy.

Ms Palmer says it is important for employers to note that all employees must have an employment agreement.

“If you don’t have one for each of your employees we can help you out with the documents you need.”

For more see: www.starpeople.nz