As the clock ticks closer to April 1, 2024, New Zealand businesses are gearing up for a significant change in the wage landscape.
The Workplace Relations and Safety Minister recently announced a forthcoming increase in the adult minimum wage to $23.15 per hour, alongside adjustments to starting-out and training minimum wages.
With this adjustment, approximately 80,000 to 145,000 workers can expect an increase in their paychecks.
For business owners and managers, preparation is key to ensure compliance and smooth transition into the new wage change.
Understanding the Changes in the Minimum Wage
Effective from April 1, 2024, the minimum wage will increase by 45 cents per hour, climbing from $22.70 to $23.15.
Simultaneously, the starting-out and training minimum wage will rise from $18.16 to $18.52 per hour, maintaining its 80% alignment with the adult minimum wage.
These adjustments are essential for businesses to acknowledge as they plan their financial strategies moving forward.
Impact on Businesses in New Zealand
The increase in the minimum wage present a significant impact on businesses in New Zealand, particularly those employing workers at or near the minimum wage threshold.
This adjustment entails a shift in operational costs, affecting not only individual employees, but also imposing broader implications on budgeting and financial planning within organisations.
It’s imperative to emphasise that all employers in New Zealand must adhere to the new minimum wage regulations.
Failure to update wage rates can result in breaches of Agreement to Recruit commitments. Therefore, businesses must prioritise compliance to avoid potential penalties or legal ramifications.
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