New Zealand's minimum wage compared to Australia's national line

What is the minimum wage in New Zealand?

The minimum wage new zealand refers to the statutory minimum hourly rate that most employees aged 16 and over must be paid. From 1 April 2026, the adult minimum wage in New Zealand is NZD 23.95 per hour. There are also lower rates for starting-out workers and trainees at NZD 19.16 per hour. These rates are set by the New Zealand government and reviewed annually under the Minimum Wage Act 1983.

For comparison, Australia's national minimum wage from 1 July 2026 is AUD 26.44 per hour, which corresponds to a Salary Index of 48.2 (annualised $52,255). The New Zealand adult rate is about 10% lower in nominal terms, and after accounting for currency exchange, the gap is even wider. On the Salary Index, the New Zealand minimum wage would sit below Australia's national line of 100.

How the New Zealand minimum wage compares on the Salary Index

The Salary Index measures gross full-time adult ordinary-time earnings, with 100 representing the national average of $108,352 per year (based on ABS Average Weekly Earnings, May 2026). Australia's national minimum wage sits at 48.2. New Zealand's adult minimum wage, if converted to Australian dollars at current exchange rates, would be lower than that. For example, at an exchange rate of 0.92 AUD per NZD, NZD 23.95 becomes about AUD 22.03 per hour – well below Australia's national minimum wage. This means a full-time worker on the New Zealand minimum wage would earn roughly AUD 45,800 per year, giving an index of about 42.3.

It's important to note that the index is based on Australian earnings. New Zealand has its own median wage and cost of living, so direct comparisons should be treated as indicative.

Gross pay, super, and tax considerations

When comparing minimum wages across the Tasman, gross pay is only part of the picture. Both countries have compulsory employer superannuation contributions that are paid on top of the minimum wage.

• New Zealand: Employers must pay KiwiSaver contributions (minimum 3% of gross pay) in addition to the minimum wage. There is no Medicare levy; income tax rates are progressive and start at 10.5% for the first NZD 14,000.
• Australia: Employers must pay super guarantee at 12% from 1 July 2026, on top of the minimum wage. Employees also pay a 2% Medicare levy on taxable income.

For a New Zealand worker on the adult minimum wage working 40 hours per week, gross annual pay is about NZD 49,816. After KiwiSaver (employee contribution 3% or more) and income tax, take-home pay is lower. In Australia, a worker on the national minimum wage earning $52,255 per year would have super of $6,270 added on top, but pay income tax and Medicare levy.

Who is entitled to the New Zealand minimum wage?

The adult minimum wage applies to employees aged 16 and over who are not starting-out workers or trainees. There is no minimum wage for employees under 16. Employees with a disability may have a minimum wage exemption permit. The starting-out wage applies to 16–19 year olds who have not completed six months of continuous employment with the same employer, or to 20+ year olds on a specified training agreement. The training wage applies to employees aged 20 or over completing at least 60 credits of industry training.

If an employee supervises or trains other workers, they must be paid at least the adult minimum wage, regardless of age.

How does this affect Australian workers and employers?

For Australian employers considering hiring New Zealand workers or comparing labour costs, the minimum wage new zealand is a key benchmark. While the nominal rate is lower, differences in tax, super, and cost of living mean the effective cost to employers can be similar. For example, an Australian employer paying the national minimum wage of $26.44 per hour plus 12% super has a total cost of $29.61 per hour. A New Zealand employer paying NZD 23.95 per hour plus 3% KiwiSaver has a total cost of NZD 24.67 per hour – about AUD 22.70 at current exchange rates. The Australian cost is about 30% higher.

Award rates and enterprise agreements

In Australia, many employees are covered by modern awards or enterprise agreements that set minimum pay rates higher than the national minimum wage. For example, the Retail Award has a minimum hourly rate of $25.74 for a Level 1 employee (index 47.5). New Zealand does not have a similar award system; the minimum wage is a single statutory floor, though some industries have collective agreements that may pay more.

State and industry comparisons

Australia's state earnings vary widely, from Tasmania (index 88.6) to the ACT (index 109.9). New Zealand's average earnings are roughly comparable to Australia's lower states, but the minimum wage is a smaller fraction of average earnings. In Australia, the national minimum wage is about 48% of full-time adult ordinary-time earnings. In New Zealand, the adult minimum wage is about 55% of the median wage (estimated NZD 43.50 per hour in 2026).

For more context on how different industries and states compare, see our industries and states pages. You can also explore how the index works to understand the methodology.

Key takeaways

• The minimum wage new zealand for adults is NZD 23.95 per hour, lower than Australia's AUD 26.44.
• On the Salary Index, the Australian national minimum wage is 48.2; New Zealand's would be lower after currency conversion.
• Both countries require employer superannuation on top of the minimum wage, but rates differ (3% KiwiSaver vs 12% super guarantee).
• New Zealand has lower rates for starting-out workers and trainees at NZD 19.16 per hour.
• Tax treatment differs: New Zealand has no Medicare levy and lower starting tax rates.

For detailed pay guides and award rates, visit our pay guides page. If you're comparing pay across the ditch, remember to factor in exchange rates, super, and tax.