With the cost of living crisis, any win big and small must be celebrated. In light of wins, the government has announced an increase in minimum wage in 2025.
The current minimum wage is $23.15 per hour. Kiwis can expect a 1.5 per cent increase to $23.50. This change will come into effect on April 1st.
There will also be an increase in starting-out and training minimum wage from $18.52 to $18.80 per hour.
All rates are before tax. They are subject to lawful deductions such as PAYE tax or student loan repayments.
For Kiwis on minimum wage who are looking for a little bit of relief, this can only be good news. It’s important to consider ways you can reduce your expenses in your life to help that pay increase go that little bit further.
1. Try Comparing Bills
One effective way to make a difference to your outgoings is to compare your household bills. Jump on NZ Compare’s array of comparison sites to compare your broadband, power, mobile, and finances such as your mortgage, personal loans, and insurances.
Our comparison platforms make it easy and quick to compare these bills and find better deals. The platforms are free to use, bias-free, and hassle-free, and are designed to empower you to make better decisions about your finances so you can hopefully, ultimately save money. In light of the minimum wage increase, it’s a good idea to take a few minutes on each of these platforms to see if you can find yourself a better deal for these important bills. If you find a deal that offers better value for your hard earned money, be sure to click SWITCH. And you will be able to get started on the new plan or provider in no time and unlock savings that make a true difference to your budget.
2. Reduce Power Consumption
You can help make small, but significant savings to your monthly power bill by reducing your electricity consumption at home. There are many simple ways to do so. You can invest in energy efficient appliances. Swap your traditional light bulbs for energy saving LED bulbs. Turn off devices and appliances at the wall when you aren’t using them. Click the button below for our top 10 tips to lower your power consumption.
3. Cancel Subscriptions
How many subscriptions do you have that you don’t really use? This includes streaming platforms, apps, and gym memberships. Consider going through these and cancelling the ones you don’t use. Be honest with yourself and you will notice the difference it makes to your budget!
Employers, Here’s Your To-Do List
If you are an employer, there are a few things you’ll need to do before the minimum wage increase takes effect. It’s important to tick these off to make the transition smooth.
1. Inform the Team
If you have employees on minimum wage, be sure to let them know about the upcoming increase. It’s a good idea to do so via letter or email.
2. Check Payroll Processes
Make sure that your payroll processes and systems are set up correctly to implement the change. This includes all the moving parts of these systems including accountants, lawyers, or HR.
If your computer system is manual, double check that the settings have been amended for the change.
This is also a good time to assess any employees on starting-out or training wages to check if they are eligible for adult rates.
Now is a good time to make sure all your contracts are up to date, and up to scratch. Consider having discussions with your team and update the terms and conditions in contracts.
3. Review Business Budget
It’s important to update your budget as a business. Add the expected increased costs to your short-term and medium-term budget so you can better manage the impact of the higher wage.
