The minimum wage is increasing on 1 April 2025:
- Adult minimum wage will go up from $23.15 to $23.50 per hour
- Starting-out and training minimum wage will go up from $18.52 to $18.80 per hour
These minimums are before tax, and before any deductions for student loans, child support etc.
Now is the time to check if you have any employees who will need their rate to be increased, and get a plan in place.
What you need to do to prepare:
- Tell your team
If you have employees on the minimum wage, let them know about the increase. You should send them a letter or email advising them that you are varying their employment contract to increase their wage, and confirm the new amount.
- Pay Relativity
At the same time, it is a good idea to consider whether there are any other employees who should also have their pay adjusted, to reflect their skills and experience. In particular, consider whether any employees were previously above minimum wage, but will now be at the new minimum wage level, and whether you think they should receive an increase also.
- Check your payroll system is ready
Make sure your payroll provider or HR team knows who they need to increase the wages for, and what the new wage amounts will be. They should either future date the change in their systems, or diary it to implement it on the right date.
- Update your budget
Don't forget to calculate the additional cost of the wage increases, and update your budgets accordingly. Check how it impacts on your profit margins, and consider whether pricing adjustments might be required to cover the additional costs, whether you can absorb them, or if there are other changes you can make to offset the cost.
Need assistance? Don't hesitate to contact us to get it sorted.
Disclaimer: Please note that this information is of a general nature and specific advice advice should be sought for your situation.
