If you run a business in Wellington, it’s time to double-check that your payroll systems are up to date. As of 1 April 2025, the minimum wage in New Zealand has increased, and failing to adjust your systems could lead to non-compliance and financial penalties.
Adult minimum wage: $23.50 per hour
Starting-out and training wages: $18.80 per hour
These changes apply to all employers and impact how employees are paid across daily, weekly, or fortnightly pay cycles. If an employee works more than 8 hours in a day, 40 hours in a week, or 80 hours in a fortnight, any additional hours must be paid at no less than the minimum hourly wage.
For employees who receive irregular payments — such as overtime, bonuses, or holiday pay — it’s essential to compare both their ordinary pay and average weekly earnings. You are legally required to pay them whichever is higher. This ensures compliance with the Minimum Wage Act and protects both you and your team from disputes or underpayments.
To comply with the Holidays Act 2003 and the Employment Relations Act 2000, businesses must keep detailed records of:
Hours worked per pay period
Wages and salary payments
Overtime and additional payments
Annual leave and public holidays
Written employment agreements
Even if you pay employees above the minimum wage, it’s crucial to document everything. Your records must clearly demonstrate that you’re meeting minimum employment entitlements.
Here are three simple ways to ensure your payroll stays on track:
Review employee hours regularly to ensure compliance with minimum wage laws.
Maintain clear and accurate payroll records, including timesheets and pay summaries.
Ensure all employment agreements are up to date and compliant with NZ employment law.
At Outside Accounting Wellington, we can help you review your payroll systems, update your records, and stay compliant with changing wage legislation. Get in touch today and let’s ensure your business is protected and your team is paid correctly.
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