The Workplace Relations and Safety Minister has announced that the adult NZ minimum wage will be rising to $23.15 per hour from 1 April 2024. – a 2% increase from the current hourly rate of $22.70. Brooke van Velden had initially proposed a 1.3% increase, while the Ministry of Business, Innovation and Employment recommended 4%.
The Starting-Out and Training minimum wage rates will both increase to $18.52 per hour, remaining at 80% of the adult minimum wage.
Between 80,000 and 145,000 New Zealand workers earn between paid between the current and new minimum wage rates. As an employer, you’ll need to keep up to date with the latest minimum pay rates and pay your employees at least the current minimum rate. This rate stands even if your employee only works a few hours for you each week or has little responsibility at work.
Costs are increasing
In addition to the cost of labour, inflation has put upward pressure on everyday items. That will likely increase your general running costs and the price of materials. Petrol prices are up, for instance, and supply chain issues have driven up the cost of many imported products.
Is it time to review your pricing
Ideally, your business should increase costs by a tiny amount each year, rather than by a big jump every five years, for instance. Small increases help prevent price shocks for customers, and keep your business in line with the rest of the market.
Can you cut costs?
If you don’t think increasing your prices is an option, or you still need to make more of a change, you may need to cut back your spending. In fact, the use of some cloud accounting tools can significantly impact how quickly you get paid. We wrote more on that in our article “3 Cloud Accounting Tips to Save your Business Time and Money“.
We can help you look at your business line by line, so you can identify areas where you might be able to trim the fat.
Give us a call or drop us a note. Our team of experienced Business Advisors would love to help.
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