Minimum Wage Increase & Kiwisaver ESCT Tax Rates

March 13, 2025

Are you ready for the minimum wage increase on 1 April 2025?

The minimum wage applies to all employees 16 and over, including those paid by salary, piece rates or commission.

• Adult minimum wage will go up from $23.15 to $23.50 per hour.
• Starting-out and training minimum wage will go up from $18.52 to $18.80 per hour.
• All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.

Visit the Employment New Zealand website to find out how you can prepare for the increases here.

Along with the change in minimum wage, IRD have adjusted the thresholds for the ESCT tax rates to match the income tax threshold, if you use Xero Payroll (which doesn’t automatically adjust for this) or a manual payroll system, you will need to check every employee to ensure they are on the correct rate.

If you need help with any of the above, make sure you get in touch with out Bookkeeping team who will see you right!