Increase to Minimum Wage

Updated: Mar 15


On and from 1 April 2020 the minimum adult wage will increase to $18.90 per hour.


What this means for employers is that you will need to look closely at the wages you are paying your employees, and if anyone is currently earning between $17.70 (the current minimum adult wage) and $18.89, you will need to increase their hourly rate to be not less than $18.90.


A common question then also arises. Do you have to also move the rates of pay for other staff who are currently earning $18.90 or more? The short answer is no. The legislative minimum rate is all you need to apply. It becomes a business decision for each employer as to whether you also wish to increase the wages of other staff. This will come down to affordability and also whether your business can sustain an increase in the out-years.


The increase from $17.70 to $18.90 will increase your weekly wage bill by $48 (before taxes) per person receiving the full $1.20 per hour increase (i.e. working a 40-hour week).



Image courtesy of Michael Longmire - Unsplash.com

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