Increase the minimum wage to $20 per hour by 2021

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Status:
Completed
Lead agency:
Ministry of Business, Innovation and Employment
Action timeframe:
by April 2021

The Government has committed to progressively increase the minimum wage to $20 by April 2021.  The minimum wage increased from:

  • $15.75 to $16.50 per hour in April 2018
  • to $17.70 per hour from April 2019
  • to $18.90 per hour from April 2020
  • and to $20 per hour from April 2021.

Overall, the increase is estimated to boost wages paid in the New Zealand economy by $306 million a year, with more than 240,000 workers experiencing a lift of approximately an extra $48 per week before tax for employees on a 40-hour working week.

A further increase to the minimum wage, to $21.20 per hour, took effect on 1 April 2022.

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