Minimum Wage Act 1983, ss 4, 4A, 4B, 5, 8, 10 Minimum Wage Order 2021

All employees aged 16 or older have to be paid the minimum wage rate that applies in their case.

If you’re 16 or older, you’re entitled to the adult minimum wage, unless you fall into one of the two categories outlined below.

The current minimum wage for adults is $22.70 per hour.

Minimum wage rates are reviewed each year and usually adjusted.

Minimum Wage Act 1983 s 4A-4B Minimum Wage Order 2021

If you’re a “starting-out” worker or a trainee worker, the minimum wage rate is usually 80% of the adult minimum rate. The current minimum wage for starting out and trainee workers is $18.16 per hour.

You’re a starting-out worker if:

• you’re 16 or 17, and you haven’t completed six months’ employment with your current employer, or
• you’re 18 or 19 and you’ve been paid a benefit for six months or more, and you haven’t completed six months’ employment with any single employer since you started getting the benefit, or
• you’re 16, 17, 18 or 19, and you’re doing at least 40 credits a year of industry training as part of your employment agreement.

You’re a trainee worker if:

• you’re 20 or older, and
• you’re doing at least 60 credits a year of industry training as part of your employment agreement.

However, if you’re supervising or training other workers, you’re entitled to be paid the adult minimum wage – even if you’d otherwise be classed as a starting-out or trainee worker.

Minimum Wage Act 1983, s 8

If you have a disability that significantly and demonstrably affects your ability to do your job, a labour inspector can issue an exemption permit. This permit lets your employer pay you less than the minimum wage. The inspector will decide what rate you get based on your ability to do the job. For more information, see: “Your pay and the minimum wage laws”.

For information on how to contact labour inspectors, see: “Where to go for more support”  at the bottom of this page.

Care and Support Workers (Pay Equity) Settlement Act 2017, s 5

Care and support workers are employed to carry out care and support services in a person’s home care facility or workplace. These services are funded by Health New Zealand, the Māori Health Authority, or ACC. Care and support services include personal care and household management services, rehabilitation from an injury, and helping a person with a disability to work in the community.

This includes work in rest homes and residential care facilities. It doesn’t include mental health and addiction support services, vocational and disability support services, or services provided by a health practitioner.

Care and Support Workers (Pay Equity) Settlement Act 2017, s 12 Case: Terranova Homes and Care Ltd v Service and Food Workers Union Nga Ringa Tota Inc [2014] NZSC 196

If you are a care and support worker, you’re covered by specific minimum wage rates. You should get more than the standard minimum wage.

If you started working for your current employer before 1 July 2017, your minimum rate will depend on your length of experience. If you started working for your current employer on or after 1 July 2017, your minimum rate will depend on your qualifications.

Your employer also has to support you to gain formal qualifications, which will help you meet the higher payment thresholds. The Act says your employer “must take all reasonable and practicable steps” to help you upskill – this includes things like providing training and giving you leave to attend this training. The Act also sets out the timeframes in which your employer should be providing this support.

You can find out about these special rates and your employer’s obligations online, here (or go to: tewhatuora.govt.nz, search “pay equity settlement employees” and navigate to “Pay equity settlement – information for employees”).

Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016, ss 17, 18

Home and community-based care and support workers can get paid for the time spent travelling between clients (called “in-between travel payments”). This is only available where the services are funded by the Ministry of Health, Health New Zealand, the Māori Health Authority or ACC.

Your rate of pay for in-between travel is different from your standard wage. This is calculated based on the time and distance you travel between clients, but you don’t have to record or calculate these yourself. You only need to keep a travel log for trips of more than 15kms, and only if your employer doesn’t have a system to record these trips for you.

Find more information about how in-between travel rates are calculated online, here (or go to: tewhatuora.govt.nz and search “travel times and payment”).

Case: Idea Services Ltd v Dickson [2011] NZCA 14 Minimum Wage Act 1983, s 6

If you have to sleep over at your workplace and have continuous responsibilities in this time (for example, if you have to be available to help clients if they wake up), this is usually considered a “sleepover”. You are entitled to at least minimum wage for every hour of a sleepover shift.

If you are on call overnight but don’t have to stay at your workplace, it is usually not considered a sleepover.