Minimum Wage increase 1 APRIL 2018
The Government has announced that the adult minimum wage will rise on 1 April 2018 to $16.50 per hour - from the current rate of $15.75 per hour. This means that if you have adult employees earning less than $16.50 an hour, you are legally required to increase their wage rates. You need to advise the employee of this and record the change in writing. This means that you should draft a Variation Letter for the employee to sign. One copy should be retained for the employer record and one copy retained by the employee. It is important to keep a record of the change in case you are ever audited by the Labour Inspectors.
The minimum rates apply to all employees whether they work full-time, part-time or casually and whether they are paid a wage for time worked, partly or wholly on a commission basis or for what they produce (piece rates).
The minimum adult rate applies to any employee aged 16 years and over unless they are eligible for the 'starting-out' wage or the 'training' wage.
There is no legal minimum rate for employees aged 15 years or younger
The table below summarises the minimum hourly rates and the changes:
|Employee||Old minimum rate per hour||New minimum rate per hour From 1 April 2018|
|Aged 15 years or under||No minimum applies||No minimum applies|
|16 and 17-year-olds, first six months, not training or supervising others||Starting-out $12.60||Starting-out $13.20|
|16 and 17-year-olds, after six months with same employer, or training or supervising others||Adult $15.75||Adult $16.50|
|16 to 19-year-olds on an industry training programme involving at least 40 credits a year, not training or supervising others||Starting-out $12.60||Starting-out $13.20|
|18 and 19-year-olds, previously on a benefit for six months or more, not yet completed six months' continuous employment with any employer, not training or supervising others||Starting-out $12.60||Starting-out $13.20|
|18 and 19-year-olds, previously on a benefit for six months or more, after six months' continuous employment for any employer, or training or supervising others||Adult $15.75||Adult $16.50|
|Aged 20 and older on an industry training programme involving at least 60 credits a year||Training $12.60||Training $13.20|
|All other employees||Adult $15.75||Adult $16.50|
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