Auckland, 25 March 2026: New minimum wage rates and KiwiSaver contribution changes will take effect across New Zealand from 1 April 2026, impacting employers, employees, and payroll processes nationwide.
Minimum Wage Increases
From 1 April, the Government has confirmed the following rates:
Adult Minimum Wage: $23.95 per hour
Starting‑Out Wage: $19.16 per hour
Training Wage: $19.16 per hour
These apply to all employees aged 16+, including part‑time, casual, fixed‑term, and remote workers. Minimum wage rules also extend to workers’ earning commissions or piece rates.
Training wage eligibility: Employees aged 20+ completing 60 credits annually toward an approved industry qualification.
Starting‑out eligibility: Workers aged 16 – 19 who meet criteria such as being new to employment or undertaking relevant training.
KiwiSaver Changes
Also from 1 April:
Default contribution rate increases from 3% to 3.5% (first stage of a phased rise to 4% in 2028).
Employees may opt down to 3%, but contributions reset to the default after 12 months.
16‑ and 17‑year‑olds who opt for KiwiSaver will now receive compulsory employer contributions.
Ashlea Maley, Associate Director – Operations, Peninsula New Zealand, said: “The current economic climate is placing significant pressure on small businesses, with many facing rising payroll obligations at a time when operating conditions are already tough. We’re seeing a noticeable increase in employers seeking guidance, as the cost of getting things wrong – particularly around unfair dismissal and wage compliance – continues to rise.
“As wage theft has become a criminal offence, unintentional underpayments have much more dire consequences for small businesses now. We urge business owners to take this opportunity and review their internal systems and processes. With new regulations coming into effect, employers need to act cautiously, stay informed, and make sure every part of their operation is compliant.”
What Employers Need to Do
Employers are encouraged to:
- Update payroll systems for new wage and KiwiSaver settings
- Review employment agreements
- Communicate changes to staff, particularly young workers and trainees
- Ensure minimum wage increases are applied from the first full pay period after 1 April.
Non‑compliance may lead to arrears, penalties, or disputes.
Ashlea added that the pressure is intensifying as the end of the financial year approaches: “This EOFY period is proving to be one of the toughest we’ve seen in recent years. Businesses are making hard calls – letting staff go, restructuring, or in some cases closing their doors altogether. We’re supporting a growing number of employers navigating redundancies brought on by uncertainty and escalating costs.
“The message to business owners is clear: in this climate, compliance isn’t optional. It’s essential to protect your people, your operations, and the long‑term viability of your business.”
About Peninsula Australia
Peninsula is New Zealand and Australia’s leading workplace advisory firm for SMEs, advising more than 30,500 clients in New Zealand and Australia on workplace relations and workplace health & safety issues. Its advice line allows businesses to speak with its team of workplace relations specialists, and through onsite visits to their business.
LiveNews: https://enz.mil-osi.com/2026/03/25/investments-upcoming-minimum-wage-and-kiwisaver-changes-effective-1-april-2026/