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Changes to Minimum Wage on 1st of April

By SmartPayroll | March 31, 2017

In January this year, the Government announced an increase in the minimum wage. The minimum wage will increase by 50 cents to $15.75 per hour on the 1st of April 2017.

The starting-out and training minimum wage rates will increase as well, from $12.20 to $12.60 per hour. This keeps them at 80 percent of the adult minimum wage.

Minimum wage rates from 1st of April 2017

Type of minimum wage Per Hour 8 Hour day 40 hour week
Adult $15.75 $126.00 $630.00
Starting-out $12.60 $100.80 $504.00
Training $12.60 $100.80 $504.00

What do I need to do?

If you are a SmartPayroll customer, you will need to update the pay rate of any of your employees who are on minimum wage, to the new wage level. Payroll providers don’t automatically update the minimum wage because there are some circumstances where employees can be paid below the minimum wage.

You can of course call our friendly team if you need any help with updating these rates, or if you just want us to check that everything is correct. Our call centre team are here to help you make sure you are compliant with employment legislation at all times.

If you’re not with SmartPayroll and you need help making these adjustments, you’ll need to contact your payroll provider to find out what they can help with. For those who are running payroll manually, make sure that all of your staff are paid at the appropriate new minimum rate for all hours worked on April 1st onwards.

While you’re at it, why not see how much SmartPayroll would cost you monthly with our pricing calculator. Not only will you save time running payroll, you also get access to our excellent help desk service.

About Starting-out and Training wages

The starting-out minimum wage applies to workers who are 16 and 17 years old, who have not yet been employed for six months with their current employer. Once they have been with the employer for six months, they are no longer “starting-out” employees and must be paid the adult minimum wage. This rate can also apply to 18 and 19 year olds who have been on certain benefits for more than six months before starting with their employer.

The training minimum wage applies mostly to apprentices. They are employees who are 20 and over, whose employment agreement states that they have to do at least 60 credits a year of an industry training program. It does not apply to training for work by their employer, the employee must be doing an approved industry training programme.

For more information on the starting-out and training minimum wage rate, visit the Government’s employment website.