Every year on 1 April, the Government's annual minimum wage review takes effect, and in recent years, that has consistently meant an increase. Almost every year, some employers get caught out, either because they missed the update, or because the increase has knock-on effects they hadn't thought through.
This blog is designed to be a practical checklist you can revisit each April. The specific figures will change year to year, but the things you need to check stay largely the same.
The current rates (from 1 April 2026)
The adult minimum wage has increased to $23.95 per hour, up from $23.50. The starting-out and training minimum wages have both increased to $19.16 per hour, up from $18.80.
2026 also brings an additional change worth knowing about: the default KiwiSaver contribution rate has increased from 3% to 3.5% for both employees and employers. If you have employees contributing at the previous default rate, both their deduction and your matching contribution need to increase. This is the change most likely to catch people off guard this year.
What to check every April 1st
Employees paid at or near the minimum wage
This one is obvious, but it's worth being thorough. It's not just employees on exactly the old minimum rate who need reviewing, but anyone earning between the old and new rates needs a pay increase too, including part-time and casual staff.
The new rate applies to all hours worked from 1 April 2026, regardless of when the payroll is processed, meaning payroll systems need to be updated in time for the first April payroll cycle.
Salaried employees
A salaried employee’s effective hourly rate must still meet the minimum wage. For 2026, a full-time employee (40 hours per week) needs to be earning at least $49,816 annually to meet the adult minimum wage. If you have employees on salaries close to that threshold, check them now.
(This figure changes each year as the minimum wage changes so it’s worth building this check into your annual April process.)
Piece rates and commission-based pay
Employees paid by piece rate or commission must still receive at least the minimum wage for every hour worked. If your calculations are based on an older rate, update them.
KiwiSaver at the new default rate
From 1 April 2026, the default contribution rate increases to 3.5% for both employees and employers. Check whether your payroll software has updated this automatically, and don't assume it has.
Once an employee's temporary contribution reduction period ends and they move back to the higher rate, the employer must also increase their contribution back to at least the new default. This is an easy one to miss if the reduction period expires mid-year with no flag in your payroll.
Employees on total remuneration packages
If KiwiSaver employer contributions are included in a total remuneration package, the increase in the contribution rate affects the effective cash component of that package. Review these carefully.
Starting-out and training wage employees
Check when employees on the starting-out or training rate are due to move to the adult rate, and make sure the transition is scheduled correctly in your system.
Don't rely on your software to do this automatically
Some payroll systems apply the new rates automatically, but it's your obligation as an employer to make sure the change has actually been made correctly. Check your first April pay run, and don't assume everything is right just because the system processed it without errors.
If you'd like help reviewing your payroll ahead of or following the April changes, feel free to get in touch.
Updated March 2026 | Originally published March 2024
About the author
Karyn Campbell is a New Zealand payroll consultant and founder of Payroll Consult. With 5+ years running her own consultancy and a background in payroll software – including roles across client support, onboarding, and partnership management at a leading NZ payroll provider – Karyn brings a rare combination of technical knowledge and real-world compliance experience. She works with business owners, bookkeepers, and payroll teams across New Zealand, specialising in payroll audits, system reviews, and fixing complex payroll issues for teams that don’t work a typical 9-5.
