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HR Essentials HOT

30 April: 1-day workshop to cover essential HR tools for local businesses. Including retention and  addressing critical challenges in today's labour market...

Michael PriskFeb 13, 2025 10:24:58 AM1 min read

Minimum Wage Increase: What Employers Need to Know

The Government has recently announced that the adult minimum wage rate will increase by 1.5% to $23.50 per hour, effective from 1 April 2025. This modest increase reflects a cautious approach to wage-setting, considering the ongoing economic recovery and labour market conditions.

The Coalition Government has emphasised the need for balance, acknowledging the pressures on both businesses and employees. With businesses still navigating the impacts of high interest rates and recessionary conditions, this increase aims to provide some relief to lower-income workers while minimising additional financial strain on employers.

 

Key Considerations for Employers

To ensure a smooth transition, Business Canterbury members should take the following steps:

  • Communicate with Employees: If you have team members earning the minimum wage, advise them of this change closer to the implementation date.

  • Update Payroll Systems: Ensure your payroll software and processes are ready to implement the new rate by 1 April 2025.

  • Review Pay Structures: If you have employees earning just above the minimum wage, consider whether any adjustments may be needed to maintain pay differentials.

  • Assess Business Impact: Factor this wage increase into your financial planning to ensure your business remains sustainable.

For more information on these changes and how they may affect your business, contact us at hradvice@cecc.org.nz.

Looking for additional HR Support?

Access expert guidance and best practices when you need it with our HR Advice membership, from $600/year + GST.

 


 

Advocacy for Predictability in Wage-Setting

Business Canterbury, in collaboration with the BusinessNZ network, is advocating for:

  • A commission-based structure to depoliticise minimum wage decisions.
  • A three-year forecast period tied to economic indicators (such as the labour cost index and CPI) to provide businesses with greater certainty for planning.
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Michael Prisk
HR/ER Business Consultant
I’m passionate about helping businesses build healthy, supportive workplaces where people thrive. From offering practical HR consultancy to running training sessions and sharing insights through blogs, I’m here to make HR simple and effective for our members.

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