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Minimum wage rises by $1.20 on 1 April 2020

The minimum wage is going up from $17.70 to $18.90 per hour on 1 April 2020. Here’s what you need to do.

When: 1 April 2020

What: The new minimum wage rates, before tax, are:

  • Adult - $18.90 an hour (up from $17.70)
  • Starting-out - $15.12 per hour (up from $14.16)
  • Training - $15.12 per hour (up from $14.16)

Minimum pay rules

Why: By law, Government must review the minimum wage rates every year.

What you’ll need to do:

  • If you do have staff on minimum wage, let them know about the increase.
  • If any workers are on starting-out or training wages, now is a good time to check when they’ll be eligible to move onto the adult rate.
  • If you pay staff minimum wages, recalculate your budget for the rest of the year, as you’ll be paying out more in wages. To work out the updated cost of your employees, use the Employee cost calculator.

Employee cost calculator

  • If your payroll and employment agreements are a few years old, you can use this as a chance to update them using our free and easy tool, Employment agreement builder. Note that it is a legal requirement to have a written employment agreement with all your staff.

Employment agreement builder (external link)

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