The Minimum wage is increasing
The minimum is set to increase again come 1st April 2024.
The adult minimum wage will increase by 45 cents, from $22.70 to $23.15 per hour. The starting out, and training minimum wage will increase by 36 cents, from $18.16 to $18.52 per hour.
These rates are before tax and lawful deductions. It does not include 8% Holiday pay for casuals. This needs to be calculated on top.
If you have salaried employees, you must ensure that your team are not at risk of falling below the new minimum wage, should they work additional hours. You will need to revisit your calculation for the maximum number of hours each can work, per pay period, before requiring a top up payment.
The minimum wage is not the only change.
The ACC Earner Levy is increasing
In addition to the increase in minimum wage, the ACC Earner levy, which makes up part of your employees PAYE calculation, will also be increasing.
The increase of 7 cents per $100 of income, will also take effect from 1st April 2024, taking the levy from 1.53% to 1.60%, or, $1.60 per $100.00 of earnings. This will impact of the amount of PAYE paid to the IRD, for each employee.
It is important that any salaried staff have their existing calculations revisited, to ensure the increase is accounted for.
Student Loan repayment thresholds are increasing
The amount of money an employee can earn before the 12% Student loan is deducted, will increase from $22,828 to $24,128.
On average, employees can expect to earn an additional $25 a week on their gross incomes, before the 12% Student loan deduction applies. Please see the table below for details.
