For an employee working a 40-hour week, this amounts to an extra $30.00 per week in their pay packet before tax.
At BUSINESS buddy we’ve had a look at how this increase may affect employers now, and in the years ahead.
The nitty gritty
The minimum wage increases in two stages with the first, an increase of $0.75, was implemented on April 1, 2018.
The rise benefits approximately 164,000 workers and their families.
The second increase will up the minimum wage to $20.00 per hour by 2021.
What minimum wage increases mean for New Zealand employers?
The increasing wage bill for businesses may result in higher costs of goods and services for customers.
Inevitably, employers will review and potentially reduce staff numbers to prevent cost increases.
Increasing employee productivity, reducing overheads and investing in technology are all adjustments business owners should consider.
The minimum wage increase can’t be escaped but many companies report increased employee engagement when staff are paid more.
Look at it as another adjustment to be embraced with positivity, innovative and forward-thinking business management.
Feel free to call on 0800 283 399 if you need advice on managing the rise for your staff.