Come April 1 2022 the Government is raising the minimum wage rates again. $21.20 will be the new adult minimum wage with starting out and training rates proportionally increased.
The details of the changes are:
- The adult minimum wage will increase from $20.00 to $21.20 per hour.
- The minimum wage for starting-out and training will go up from $16.00 to $16.96 per hour.
- All rates are before tax and any lawful deductions for example PAYE tax, student loan repayment, child support.
The minimum wage applies to employees who are:
- full-time, part-time, fixed-term, casual, working from home
- paid by wages, salary, commission or piece rates (with some exceptions).
Employees must be paid at least the minimum hourly wage rate for every hour worked, unless they agreed to a higher rate in their employment agreement. Payments for call-outs should also be negotiated in the employment agreement.
Salaried employees – can divide their pay by the number of hours they work in a pay period to make sure they earn the minimum wage.
Wage earners – can check their hourly rate is at least the minimum wage. Any extra hours they’re asked to work must also be at least minimum wage.
- Starting-out workers – must be paid at least the minimum starting-out wage rate.
- Trainees over 20 – must be paid at least the training minimum wage rate.
Employees paid piece rates – must be paid at least the minimum wage for each hour worked.
Exceptions – the minimum wage does not apply to people who have a minimum wage exemption permit.