As your Nelson based Chartered Accountants, it’s important that we keep you, our clients, up to date with legislative changes that could affect you. If you are employers you should be aware of new minimum wage rates that recently came into effect.
There are three minimum wage rates:
- the adult minimum wage applies to all employees aged 16 and over who are not new entrants or trainees
- the new entrants minimum wage applies to employees aged 16 and 17, except for those who have completed 200 hours or three months of employment in the workforce, whichever is shorter; or who are supervising or training other workers; or who are trainees
- the training minimum wage applies only to employees aged 16 and over who are doing recognised industry training involving at least 60 credits a year.
From April 1st new minimum wage rates took effect.
The adult minimum wage rates (before tax) that apply for employees aged 16 or over are:
- $13.75 an hour, which is
- $110.00 for an 8-hour day or
- $550.00 for a 40-hour week.
The rates that apply to new entrants, and employees on the training minimum wage (before tax), are:
- $11.00 an hour, which is
- $88.00 for an 8-hour day or
- $440.00 for a 40-hour week.
Employees have to be paid at least the minimum hourly wage rate for any extra time worked over eight hours a day or 40 hours a week.
From 1 May 2013 the starting-out wage will replace the new entrants wage and training wage for under-20s.
Three groups will be eligible for the starting-out wage. These are:
- 16 and 17 year-olds in their first six months of work with a new employer (or until they are training or supervising others)
- 18 and 19 year-olds who have been paid a benefit for six months or longer, and who have not completed six months of continuous work with any employer since starting on benefit (or until they are training or supervising others)
- 16 to 19 year-old workers in a recognised industry training course involving at least 40 credits a year
Under the starting-out wage, eligible 16 to 19 year-olds can be paid 80 per cent of the adult minimum wage for six months OR for as long as they are undertaking recognised industry training of at least 40 credits per year.
The starting-out wage sits alongside other government initiatives aimed at helping more young New Zealanders into work or training, including Work and Income’s Job Streams.
For more information visit the Department of Labour website.