new entrants and the minimum wage

Changes to the Minimum Wage from 1 April 2008

The Minimum Wage (New Entrants) Amendment Act was passed on 5 September 2007 and it changes how the minimum wage applies to some people. There is no longer a youth minimum wage as of 1 April 2008. Instead there is a minimum wage for new entrants that applies to some employees aged 16 or 17. Other employees aged 16 years or over are entitled to the adult minimum wage. The training minimum wage will remain unchanged.

What is the New Entrants Minimum Wage?

A new entrant is a worker who is 16 or 17 years old except if

they have completed 3 months or 200 hours of employment, whichever is shorter, OR
they have been supervising or training other workers, OR
they are subject to the minimum training wage.

How much is the New Entrants Minimum Wage Rate?

The new entrants minimum wage is $9.60 an hour before tax as of 1 April 2008. That’s $76.80 for an eight hour day, and $384 for a 40 hour week.

When does the New Entrants Minimum Wage Rate come into force?

The new entrants minimum wage came into force on 1 April, 2008.

How do I know if I have completed 3 months or 200 hours of employment?

The three months or 200 hours includes employment undertaken with more than one employer, that is, the periods of employment are cumulative.

The three months or 200 hours includes employment undertaken before 1 April 2008, provided the employee is aged 16.

Any employment undertaken before a worker turned 16 years of age does not count towards the 3 months or 200 hours.

You can also ask your employer to provide you with a written statement about the number of hours or the period over which you have worked. View a sample Statement of Service.

Related factsheets:

Employees – New Entrants and the Minimum Wage http://www.ers.dol.govt.nz/factsheets/new-entrants-minimum-wage-employees.html
Employers – New Entrants and the Minimum Wage
http://www.ers.dol.govt.nz/factsheets/new-entrants-minimum-wage-employers.html

back to top

This page was last updated on: 01-Apr-2008 and is current.

Further information & guidance

We welcome the opportunity to help you further. If you can't find an answer to your question, or you want further clarification, more detailed information or guidance on any matter covered here, please contact us. We value your query and will respond to you as quickly as possible.

Call us free on 0800 20 90 20 or visit our website at www.ers.dol.govt.nz.

The content of this document covers common problems. It will not answer every question and should not be used as a substitute for legislation or legal advice.

The Department of Labour takes no responsibility for the results of any actions taken on the basis of information on this website, or for any errors or omissions.