New Zealand’s adult minimum wage will rise to $23.95 per hour, a two percent increase from the current $23.50, effective April 1, 2026, applying uniformly across the country as part of the government’s efforts to support low-income earners amid stable inflation projections.
The adjustment will also raise the training and starting-out minimum wages to $19.16 per hour from $18.80, affecting approximately 122,500 workers nationwide.
Workplace Relations and Safety Minister Brooke van Velden announced the changes on Wednesday, describing them as a “moderate increase” that aligns with the government’s commitment to economic growth, income support, and job stability for Kiwis.
“This increase is intended to help minimum wage employees keep pace with living costs, given inflation is expected to remain around two percent from June 2026,” Van Velden said.
Van Velden noted that previous minimum wage hikes had led to wage compression, reducing differences in pay based on skills, experience, or performance.
The adjustment also aims to address youth unemployment, which stood at 15.2 percent in the September 2025 quarter, compared with the overall rate of 5.3 percent.
“Young people are more likely than other groups to earn at or below the adult minimum wage. Ensuring a balanced rate gives them access to entry-level jobs that can set them up for future success,” she said.
The minister added that the moderate increases agreed for 2024 and 2025 have begun to ease wage compression trends.
“I am pleased to deliver this increase, which reflects the government’s commitment to growing the economy, boosting incomes, and supporting Kiwis in jobs across the country,” Van Velden said.
For a worker on the adult minimum wage working 40 hours per week, the increase translates to an additional $18 weekly, or $936 annually before taxes.
By limiting the increase to two percent, the government aims to support workers while protecting small and medium enterprises from additional cost burdens and maintaining incentives for skill development and performance-based pay.
The adjustment continues the trend of cautious, moderate annual increases to ensure sustainable wage growth without disrupting employment levels across sectors.
