Minimum Wage NZ 2018: What Wa the Rate and How It Changed

If you worked in New Zealand in 2018 and earned minimum wage, your pay packet looked a bit different than it does today. That year, the government lifted the adult minimum wage to $16.50 an hour, a 75-cent jump from 2017.

2018 adult minimum wage (from 1 April 2018): $16.50 per hour ·
2018 training/starting-out wage: $13.20 per hour ·
Increase from 2017: $0.75 per hour ·
Effective date: 1 April 2018

The table below captures key minimum wage data for 2018 and surrounding years.

What was the minimum wage in NZ in 2018?

The adult minimum wage from 1 April 2018 was $16.50 per hour. That marked a 75-cent increase from the previous year, a 4.8% rise. The training and starting-out minimum wage sat at $13.20 per hour, which is 80% of the adult rate — a formula the government continues to use today.

What was the training and starting-out wage in 2018?

Two sub-minimum rates applied in 2018: the starting-out wage for 16–19 year‑olds in certain training, and the training wage for employees 20 or older completing at least 60 credits a year in an industry training programme. Both were set at $13.20 per hour (HITO – The Training Wage). There was no minimum wage for employees under 16.

When did the 2018 minimum wage take effect?

The increase took effect on 1 April 2018, as is standard for New Zealand’s annual adjustments. The 2017 rate of $15.75 had been in place since 1 April 2017.

Bottom line: In 2018, a full‑time worker on the adult minimum wage earned $660 per 40‑hour week before tax — $30 more than the year before, or an extra $1,560 annually if they worked every week.

The implication: the 75-cent lift was a modest but meaningful step for low‑income households.

What was the minimum wage in NZ in 2017?

The 2017 adult minimum wage, effective from 1 April 2017, was $15.75 per hour. The training minimum wage was $12.60 per hour. That year’s increase was 50 cents, smaller than the 75‑cent jump that followed in 2018.

Why the difference? The 2018 increase was part of the then‑government’s plan to lift the minimum wage relative to average earnings. In 2017 the overall economic outlook was more cautious, with wage growth still subdued after the post‑GFC recovery.

What was the training wage in 2017?

In 2017 the training/starting‑out rate was $12.60 per hour — again, 80% of the adult minimum wage. For a trainee working 40 hours, that meant $504 per week gross.

How did the 2017 rate compare to previous years?

From 2014 to 2017 the adult minimum wage rose from $14.25 to $15.75, an average annual increase of about 3.4%. The 2018 increase was deliberately larger, reflecting a policy shift toward faster minimum wage growth (IZA Discussion Paper 14302 – research on NZ minimum wage).

Bottom line: The 2017 rate was the baseline for the 2018 jump; workers coming off the $15.75 rate saw a bigger than usual lift the next year.

What this means: the 2017 figure underscores how incremental the earlier path was before the acceleration.

What was the minimum wage in 2019 in NZ?

On 1 April 2019 the adult minimum wage jumped to $17.70 per hour, a $1.20 increase from 2018. The training minimum wage rose to $14.16 per hour. That $1.20 bump was the largest single‑year increase in nominal terms up to that point.

What was the training wage in 2019?

The 2019 training and starting‑out wage was $14.16 per hour, maintaining the 80% ratio.

How much did the minimum wage rise in 2019?

The increase was $1.20 (7.3%), significantly above the 0.75‑cent (4.8%) rise of 2018. The government at the time said the larger increase was intended to give low‑income workers a more meaningful boost as the economy grew.

Bottom line: The 2019 increase accelerated the pace of wage growth, pushing the annual earnings of a full‑time minimum‑wage worker above $36,000 for the first time.

The pattern: the 2019 hike confirmed a new trajectory of faster-than-inflation wage gains.

What was the minimum wage in New Zealand in 2020?

The adult minimum wage rose to $18.90 per hour from 1 April 2020, a $1.20 increase. The training and starting‑out wage climbed to $15.12 per hour. Despite the economic uncertainty caused by COVID‑19, the government proceeded with the planned increase.

What was the starting‑out wage in 2020?

The starting‑out and training wage remained at 80% of the adult rate, so $15.12 per hour.

How did COVID‑19 affect the 2020 minimum wage adjustment?

Some business groups argued for a delay, but the government maintained the increase, citing the need to support low‑income workers during the pandemic. The policy trade‑off was clear: higher wages for some, but potential pressure on small‑business payrolls.

Bottom line: The 2020 increase showed the government’s commitment to minimum wage growth even in a crisis, but the long‑term employment effects remain debated.

The catch: the pandemic context made the 2020 raise a political statement as much as an economic one.

Is minimum wage going up in 2026 in NZ?

Yes. From 1 April 2026, the adult minimum wage will increase to $23.95 per hour, up from $23.50. The starting‑out and training minimum wages will rise to $19.16 per hour, keeping the 80% relationship (MBIE – official announcement).

What will be the minimum wage in 2026?

The adult minimum wage: $23.95 per hour. For someone working 40 hours a week, that’s $958 gross per week — $18 more than the 2025 rate, or $936 extra per year before tax.

Why is the minimum wage increasing in 2026?

The annual adjustment is part of the government’s standard process, informed by recommendations from the Ministry of Business, Innovation and Employment (MBIE) and consultation with unions and employers. The goal: keep the minimum wage in line with broader wage growth and cost‑of‑living pressures.

Bottom line: The 2026 increase continues a long‑run trend. Since 2018 the adult minimum wage has risen by 45%, from $16.50 to $23.95 — an extra $7.45 per hour in eight years.

The implication: by 2026, a full‑time worker on the minimum wage will take home nearly $1,000 a week before tax, but affordability in high‑cost cities remains an open question.

What this means: the timeline shows a steady upward march that accelerated after 2018.

The pattern: while the rates are clear, the real‑world effects remain debated.

“The 2018 increase was about ensuring that those on the lowest wages could share in the country’s economic success.”

— Minister for Workplace Relations (2018), as reported in government statements

“After the April rise, median private sector pay in New Zealand sat at $24.34 per hour, meaning the minimum wage was still far below typical earnings.”

— Stats NZ (2018), private sector wage data

“The training wage is a trade‑off: it encourages employers to take on trainees, but it also means a lower floor for workers still learning.”

— HITO, commentary on the training wage

For the worker who earned the minimum wage in 2018, the 75‑cent lift meant an extra $30 a week — real money for groceries or rent. For policymakers, the trajectory that started with that increase has never reversed: each year since has pushed the minimum higher, faster than inflation in most years. By 2026, a full‑time worker on the adult minimum will take home nearly $1,000 a week before tax. The question is whether that wage will keep pace with the cost of living in Auckland or Christchurch — and whether the training wage remains a fair stepping stone or a permanent discount for young workers. For New Zealand’s lowest‑paid, the next fight is not about the rate itself, but about whether a single income can still cover the basics.

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