Adult minimum wage to rise 2% to $23.95 an hour from April 2026 in NZ

Ms van Velden said the increase reflects the NZ First–National coalition agreement to avoid sharp rises in the minimum wage, while still ensuring low-paid workers receive support as living costs continue to ease.

The adult minimum wage will increase by 2 per cent to $23.95 an hour from 1 April 2026, Workplace Relations and Safety Minister Brooke van Velden has announced, marking the Government’s latest step in its commitment to moderate, predictable wage increases.

Ms van Velden said the increase reflects the NZ First–National coalition agreement to avoid sharp rises in the minimum wage, while still ensuring low-paid workers receive support as living costs continue to ease.

Around 122,500 working New Zealanders are expected to benefit from the change. The Minister said the new rate strikes a careful balance between helping workers keep up with the cost of living and avoiding additional cost pressures for businesses already facing challenging economic conditions.

“I know it has been a tough time to do business,” Ms van Velden said. “That is why we have taken a balanced and responsible approach. With sound economic management, recovery and relief is coming.”

The Government says the increase is consistent with economic forecasts showing inflation stabilising at around 2 per cent from June 2026, allowing minimum wage earners to maintain purchasing power without risking job losses or reduced hours.

Ms van Velden said the decision aligns with the Government’s broader economic strategy focused on growing the economy, boosting incomes, and supporting employment across the country.

Two key factors weighed heavily in the decision-making process: youth employment and wage compression. The Minister noted that large minimum wage increases in the past had narrowed pay differences between workers, reducing incentives for skill development, experience and performance-based progression.

“Moderate increases agreed to by this Government for the 2024 and 2025 minimum wage decisions have already begun to ease wage compression,” she said. “This approach supports a healthier labour market where pay can better reflect skills and experience.”

Youth employment was also a significant consideration, as young people are more likely than other groups to earn at or near the minimum wage. Ms van Velden said keeping increases moderate helps ensure businesses can continue to offer entry-level roles that provide young workers with valuable experience and pathways to higher-paying jobs in the future.

In line with the adult minimum wage increase, the starting-out and training minimum wage rates will rise to $19.16 an hour, remaining at 80 per cent of the adult minimum wage.

Ms van Velden said the Government remains focused on creating conditions that support both workers and employers, describing the latest increase as part of a wider effort to strengthen the economy and expand opportunities.

“This Government is committed to making changes that grow the economy and create opportunities for all New Zealanders,” she said.