Have you updated your payroll systems and processes for the new minimum wage?

Does the minimum wage increase affect you? See what you need to know to make sure your payroll systems are up to date.

Check your payroll systems have been updated.

- The adult minimum wage increased to $23.50 per hour on 1 April.

- The starting-out and training minimum wage rates have also gone up to $18.80 per hour.

Employers who pay their employees by the day, week, or fortnight need to make sure workers are paid at least the minimum wage appropriate to the basis on which they are paid. Additional hours worked in excess of an 8-hour day, or 40-hour week or 80-hour fortnight (as applicable) must be paid at least the minimum hourly rate.

If an employee’s income has fluctuated with irregular overtime, bonuses, or other additional payments (such as time and a half), their average weekly earnings may be higher than their ordinary pay. You must make sure that you pay the highest of the two calculations.

Keep systematic records

Check hours worked for each pay period to make sure employees are paid at least the minimum wage appropriate to the basis on which they are paid. (The fortnightly rate applies to salaried employees.)

You are required to keep records for wages and holidays to meet your requirements under the Holidays Act 2003 and the Employment Relations Act 2000.

Records should be accurate, up-to-date, and easily accessible. The law requires detailed wages and time records, and you must keep records in sufficient detail to show compliance with minimum entitlements such as minimum wage.

Keep in mind

To stay compliant with employment law and avoid potential issues:

- Monitor hours worked – Ensure employees receive at least the minimum wage based on their employment type (such as weekly, fortnightly).

- Keep accurate records – Maintain detailed records of wages, holiday pay, overtime, and additional payments for the entire year.

- Keep written employment agreements – All employees must have a written employment agreement that complies with current employment law.

Regular review of these areas can help prevent legal risks and ensure fair treatment of employees.