The Workplace Relations and Safety Minister has announced a bump in the adult minimum wage to $23.15 per hour starting 1 April 2024, marking a 2% increase from the current rate of $22.70. Brooke van Velden had initially proposed a 1.3% increase, while the Ministry of Business, Innovation and Employment recommended 4%.

Both the Starting-Out and Training minimum wage rates will rise to $18.52 per hour, staying at 80% of the adult minimum wage.

This change affects a large number of workers, estimated between 80,000 and 145,000, who fall within the current and new minimum wage ranges. As an employer, you need to ensure you're paying at least the minimum wage, regardless of the number of hours worked or level of responsibility.

Beyond wage increases, inflation is pushing up the prices of everyday items, such as petrol and imported goods, which impacts running costs for businesses.

In light of these changes, businesses may need to consider adjusting their prices gradually to avoid shocking customers and to ensure that they remain in line with the rest of the market. And if increasing prices isn't feasible, it may be time to look for areas to cut costs.

If you're struggling to navigate these changes, feel free to reach out for assistance.