All the law you need to know . . . .
The minimum wage for employees aged 18 years and over rose to $11.25 an hour before tax on 1 April, 2007. That’s $90 for an eight hour day, or $450 for a 40 hour week.
The youth minimum wage and the training wage both rose to $9 an hour before tax on 1 April, 2007. That’s $72 for an eight hour day, and $360 for a 40 hour week.
The youth wage applies to people aged 16 and 17 years, and the training wage applies to people doing recognised industry training involving at least 60 credits a year.
There is no statutory minimum wage for employees who are under 16 years old.
By law, employers must pay at least the minimum wage - even if an employee is paid by commission or by piece rate. The minimum wage applies to all workers aged 16 years or older, including home workers, casuals, temporary and part-time workers.
The only exception is when an employee holds an exemption permit.
Holiday pay must be paid in addition to the minimum wage. If an employee receives “pay-as-you-go” holiday pay, this payment must be a separate and identifiable part of their pay.
An increase in the minimum wage will not affect an employee’s other conditions of employment, unless they agree to the changes.
An employee being paid less than the minimum wage can complain to a Labour Inspector, who may investigate and act to recover any money owed. Employees can also get help from our mediators.
PRESS RELEASE - 22 December 2005
Minimum wage to increase
Workers earning the minimum wage will receive a pay rise of nearly eight per cent next year.
The minimum adult wage, which applies to people over 18, will increase from $9.50 to $10.25 an hour from 27 March, the largest increase since the Labour-led government came into office in 1999.
The minimum youth wage - for workers aged 16 and 17 - will also increase by nearly eight per cent, from $7.60 to $8.20 per hour, to stay at 80 per cent of the adult minimum wage. The minimum training wage will increase to the same rate.
For more information, employers and employees can contact the Department of Labour at www.ers.dol.govt.nz or free phone 0800 20 90 20.
Minimum wage increased
The minimum wage will increase from $9 to $9.50 per hour from 21 March 2005.
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