Wages and payments - Overview
Current Minimum Wage by law
As from 1 April 2008
Youth rate is abolished. New Entrants Rate:
(16 and 17 year olds for the first 200 hours or 3 months of employment)
$9.60 per hour - $76.80 per 8hr day - $384 per 40hr week.
Adult Rate:
$12.00 per hour - $96.00 per 8hr day - $480 per 40hr week. |
The adult rate applies to those aged 18 or more.
The youth rate applies to those aged 16-17 years
The training rateapplies to people doing recognised industry training, undertaking at least 60 credits per year.
The statutory minimum wage applies even if an employee is paid partly or wholly by commission or by piece rate. It applies to all types of jobs and employees, including homeworkers, casual, temporary and part-time employees.
Minimum wage exemptions
An exemption from the minimum wage lets a person work for less than the minimum wage. Labour Inspectors can grant an exemption to a person with a recognised disability that significantly slows his or her work and makes him or her incapable of earning the minimum wage.
Holiday pay is on top of minimum wage
Holiday pay for annual holidays is not included in the minimum wage and must be added on top. If an employee is being paid pay-as-you-go holiday pay the payment must be a separate identifiable component of the employee's pay. Pay-as-you-go holiday pay is only allowed for short fixed term agreements and genuinely casual employment
Board and lodging
If an employee is provided with board and lodging, a deduction of 15% for board and 5% for lodging can be made.
Equal pay:
An employer cannot pay men and women different pay rates for doing the same or substantially similar work if the only difference is their sex.
Human Rights:
An employer cannot discriminate in hiring or firing, training or promoting because of the employee's colour, race, ethnic or national origins, sex (including pregnancy or childbirth status), marital or family status, age, disability, religious or ethical belief, political opinion, employment status, or sexual orientation.
Employers cannot discriminate:
On the grounds that a person has been involved in union activities, in relation to terms of employment, conditions of work, fringe benefits, opportunities for training, promotion or transfer, dismissal, retirement, or by subjecting an employee to detriment.
Collective agreement:
If there is no collective agreement that covers the situation, employers and employees aged 16 years or more can agree to any rate of pay in their employment agreement, as long as it is equal to, or better than, the statutory minimum wage.
Wages and time records
Employers must keep wages and time records for each employee, for six years. Employees and their representatives have the right to see these.
These records must include the following information:
the employee's name
the employee's age, if under 20 years
the employee's postal address
the type of work the employee undertakes
the type of employment agreement, individual or collective
the title, expiry date and employee classification in any applicable collective agreement
where payment is calculated by the hour, the hours and days of employment in each pay period
the wages paid each pay day
details of employment relations leave taken
details of annual leave taken
details of statutory holidays worked and days in lieu provided
details of salary deductions, such as PAYE and agreed superannuation contributions.
Employers have obligations to keep holiday records. These may be kept as part of the wages and time records.
Further information is available from the Department of Labour www.ers.dol.govt.nz.
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