From the PAYROLL desk - Important Employer Tips for the 1st of April Changes

Minimum Wage Increase

• The Adult minimum wage will increase from $23.15 to $23.50 per hour. This rate applies to all employees 16 years and over.

• The Starting-out and Training minimum wage will Increase from $18.52 to $18.80 per hour, remaining at 80% of the adult minimum wage.

Refer to website: Read More

Salaried employees – check for Minimum Wage Requirements

If you have salaried employees, you need to ensure that their Gross Earnings meet minimum wage requirements for each individual pay period.

Any employees’ earnings below or around $48K per annum should be reviewed.

Employees must be paid at least the minimum hourly wage rate for every hour worked.

Payroll Tip:

An employee paid the minimum wage and working a 40-hour week will be paid:

·         $23.50 per hour x 40 hours = $940 per week or $48,880 per annum.

Employees currently on the Minimum Wage or just above

We recommend that you review all employees pay rates bearing in mind the Minimum Wage is increasing by 1.5%.

Where possible this could be a consideration for increasing other employee’s wage rates.

Living Wage

The 2024/25 Living Wage rate is voluntary and currently $27.80 per hour. Set apart from the minimum wage, it’s worker and whānau focused.

Paying the Living Wage rate is voluntary. Employers who pay the Living Wage want to ensure their workers are paid enough to live with dignity.

The Living Wage considers basic expenses, and gives breathing room for rest, activities, or saving for a rainy day. It’s good for collective wellbeing, and our economy.

Refer: Living Wage

ACC Earner Levy increase

From 1 April 2025 the ACC Earner Levy will increase from 1.60% per $100 liable earnings to 1.67% per $100.

Payroll Tip:

Remember to check and update your PAYE deductions AND employee net pay automatic payments. 

Refer: PAYE Rates 

Student Loan Threshold Remains unchanged for the 2026 year

The Student Loan Threshold from 1 April 2025 to 31 March 2026 remains at $464 per week. 

Refer: Student Loan Info

KiwiSaver Annual ESCT Review – 1st of April each year

On the first payrun of the new financial year, as an employer you are required to review each employee’s ECST rate to ensure that the rate is correct. The ESCT Thresholds have only changed.

The NEW 2025 ESCT thresholds and rates are:

ESCT Threshold

ESCT Rate

$0 -$18,720 = 10.5%

$18,721 - $64,200 = 17.5%

$64,201 - $93,720 = 30%

$93,721 - $216,000 = 33%

$216,001 upwards = 39%

Payroll Tip:

Employee ESCT rates are reviewed with the following calculation:

ADD the Total Gross Earnings and the Employer KiwiSaver contribution for the last 12 months.

For example: $58,000 salary + 3% Employer KiwiSaver contribution of $1,740 = $59,740

Means that the ESCT rate for the 2026 year will be 17.5%.

Refer: KiwiSaver Contribution