April 1st is known for April Fool’s Day pranks and marks the annual increase in the national minimum wage. Starting from April 1, 2024, the adult minimum wage will rise by $0.45, to $23.15 per hour. Additionally, starting-out and training wages will increase from $18.16 to $18.52 per hour.
As a business owner, preparing for these changes is crucial to ensure compliance with the minimum wage requirements. Here are some key steps to consider:
- Identify Affected Employees: Review your payroll to determine if any of your employees are paid at or near the minimum wage level.
- Wage vs. Salary: Understand whether your employees are paid by the hour (wage) or receive an annual salary. This distinction is essential for ensuring compliance.
- Rate Comparison: Ensure that all employee pay rates are at least equal to the new minimum wage rates.
- Inclusive Rates: For those on inclusive hourly or annual salaries, factor in the hourly rate and any entitlements for expected overtime.
If any of your employees are due for a wage increase, it is a good practice to notify them by letter or email about their new pay rate or provide this information in an employment agreement if they don’t already have one.
Need Assistance?
If you’re uncertain about the correct rates or have questions about compliance, Business 360 is here to help. Contact us at 0800 449 289 or email info@business360.nz.
To schedule a meeting for a confidential discussion, simply scan or click the link below. We’re here to ensure your business stays compliant and well-prepared for these changes.
