NZ Minimum Wage Rises to $23.95 from 1 April 2026: Full 2026-27 Breakdown

New Zealand’s minimum wage increased on 1 April 2026 to $23.95 per hour, a 45-cent lift from the previous $23.50. The change flows through to hundreds of thousands of pay packets, and — because it raises gross income — it also shifts the PAYE, ACC levy and KiwiSaver numbers that determine what actually lands in workers’ bank accounts. This guide sets out the 2026-27 rates and works through the after-tax reality for a full-time minimum wage earner.

The 2026-27 minimum wage rates

Rate type	2025-26	2026-27 (from 1 April 2026)
Adult minimum wage	$23.50/hr	$23.95/hr
Starting-out minimum wage	$18.80/hr	$19.16/hr
Training minimum wage	$18.80/hr	$19.16/hr

The starting-out and training rates remain pegged at 80% of the adult rate ($23.95 × 0.80 = $19.16). The 45-cent adult increase works out to roughly a 1.9% rise — broadly tracking inflation rather than a real-terms boost.

According to MBIE, around 122,500 workers were earning below the new rates and should see an increase as a result of the change.

Who gets which rate

• Adult minimum wage ($23.95/hr): applies to most employees aged 16 and over who are not on a starting-out or training rate.
• Starting-out minimum wage ($19.16/hr): applies to specific groups — 16- and 17-year-olds in their first six months with a new employer, 18- and 19-year-olds who have been on a benefit for six months or more and haven’t completed six months continuous work, and 16- to 19-year-olds in a recognised training course requiring at least 40 credits a year.
• Training minimum wage ($19.16/hr): applies to employees aged 20+ doing recognised industry training involving at least 60 credits a year.

There is no separate youth minimum wage in New Zealand, and no statutory minimum for employees under 16. Most teenage workers are entitled to the full adult rate once the starting-out conditions no longer apply.

Gross pay at the new minimum wage

Hours/week	Weekly gross	Annual gross
40 hours	$958.00	$49,816
37.5 hours	$898.13	$46,703
30 hours	$718.50	$37,362
20 hours	$479.00	$24,908

A 40-hour week at $23.95/hr is $958.00 gross — about $18.00/week ($936/year) more than the $940.00 a 40-hour week earned at the old $23.50 rate.

The after-tax reality for 2026-27

Gross pay isn’t take-home pay. A full-time minimum wage worker has three things deducted before the money reaches their account:

1. PAYE income tax — using the 2026-27 brackets (10.5% to $15,600; 17.5% to $53,500; 30% to $78,100; 33% to $180,000; 39% above).
2. ACC earner’s levy — a flat percentage of liable earnings, deducted alongside PAYE.
3. KiwiSaver (if enrolled) — 3% of gross by default, on top of the employer contribution.

For a 40-hour adult minimum wage worker earning $49,816/year:

Item	Annual	Weekly
Gross pay	$49,816	$958.00
PAYE income tax	−$7,492	−$144.08
ACC earner’s levy	−$830	−$15.96
Take-home (no KiwiSaver)	$41,494	$798.00
KiwiSaver 3% (if enrolled)	−$1,494	−$28.74
Take-home (with KiwiSaver)	$40,000	$769.20

The figures above are indicative — run your exact numbers, including the right ACC levy rate and any student-loan deductions, through the Minimum Wage Calculator.

The key point: of the ~$18/week gross increase, a full-time worker keeps roughly $15/week after PAYE and the ACC levy. The 10.5%–17.5% marginal rates at this income level mean most of the raise survives — but not all of it.

How it interacts with Working for Families

A minimum wage worker with children may also receive Working for Families tax credits. Because the minimum wage rise nudges gross income up, it can marginally increase Family Tax Credit abatement for families already above the $44,900 abatement threshold — the higher income abates WfF at 27.5 cents per extra dollar.

For most full-time minimum wage families the net effect is still positive: the wage increase outpaces the small abatement clawback. The 2026-27 Minimum Family Tax Credit floor of $36,604 net/year ($703/week) also tops up very-low-hours working families to a guaranteed after-tax minimum. See the Working for Families 2026-27 rates for the full picture, or model it in the Working for Families calculator.

What employers need to do

• Update payroll from the first pay period that includes 1 April 2026. Hours worked on or after 1 April must be paid at the new rate.
• Check salaried staff whose effective hourly rate could dip below $23.95 once their actual hours are counted — salaried roles still have to clear the minimum wage on an hours-worked basis.
• Review starting-out and training arrangements to confirm employees still qualify; a 16- or 17-year-old moves to the adult rate after six months with the employer.
• Account for on-costs: the wage rise also lifts KiwiSaver employer contributions, ACC levies and holiday pay accruals that are calculated on gross wages.

Bottom line

From 1 April 2026 the adult minimum wage is $23.95/hr, starting-out and training rates are $19.16/hr, and a full-time worker earns about $18/week more gross — roughly $15/week after tax. It’s an inflation-tracking adjustment rather than a real-terms gain, but it lifts the income floor for around 122,500 workers.

Check your own take-home pay with the Minimum Wage Calculator, compare it against the full PAYE breakdown, and read the 2025-26 minimum wage tax impact for the prior-year comparison.