Minimum wage rising to $20 per hour from 1 April 2021

Published: 17 December 2020

The Workplace Relations and Safety Minister has announced that the adult minimum wage will be rising to $20.00 per hour from 1 April 2021.

This is an increase of $1.10 per hour from the current rate of $18.90 per hour.

The training and starting-out minimum wages will also both increase to $16.00 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $15.12 per hour.

For an employee who works forty hours a week, the minimum wage rise to $20.00 per hour means that they’ll earn an additional $44 per week before taxes.

Up to 175,500 workers are estimated to receive a wage boost following the increase. This represents those who currently earn between $18.90 and $20.00 per hour. Across the economy, the minimum wage rise is estimated to increase wages by $216 million.

The Government has indicated its intentions to increase the minimum wage to $20.00 per hour in 2020 since 2018. Any future increases are yet to be decided by Ministers.

MBIE media contacts

Phone: 027 442 2141

Last updated: 16 December 2020