Minimum Wage Increase
On the 1 April 2024 the minimum wage will increase to $23.15 per hour. This rate applies to all employees 16 years and over. The starting-out and training hourly minimum wage rates will increase to $18.52 per hour, remaining at 80% of the adult minimum wage.
Salaried employees – check for Minimum Wage requirements
If you have salaried employees, you need to make sure that their Gross earnings meets minimum wage requirements for each individual pay period.
Any employees’ earnings below or around $48K per annum should be reviewed.
Employees must be paid at least the minimum hourly wage rate for every hour worked.
TOP TIP: ($48,152pa / 52 weeks / $23.15 per hour = 40 maximum working hours)
Employees currently on the Minimum Wage or just above
We recommend that you review all employees pay rates bearing in mind the Minimum Wage is increasing by 2%. Where possible this could be a consideration for increasing other employee’s wage rates.
Living Wage
The Living Wage rate is voluntary and currently $26.00 per hour. A living wage is the income necessary to provide employees and their families with the basic necessities of life, enabling them to live with dignity and to participate as active citizens in society.
Refer: https://www.livingwage.org.nz/
ACC Earner Levy increase
From 1 April 2024 the ACC Earner Levy will increase from 1.53% per $100 liable earnings to 1.60% per $100.
TOP TIP: Remember to update all employee net pay automatic payments.
Student Loan Threshold Change
The Student Loan Threshold from 1 April 2024 to 31 March 2025 will increase to $464 per week. Check your payroll software or check the calculations through the PAYE Calculator and update the filing period to 31 March 2025. The IR online calculators will be updated late March/early April.
TOP TIP: Remember to update all net pay automatic payments of employees with Student Loan deductions.
KiwiSaver Annual ESCT Review – 1 April each year
At the first payrun of the new financial year, as an employer you are required to review each employee’s ECST rate to ensure that the rate is correct.
TOP TIP: To calculate this = Total Gross Earnings + Employer KiwiSaver contribution in the last 12 months
For any questions please contact the Accounted4 Payroll team.
Carolyn - Ext.837 - Email: carolyn.l@accounted4.co.nz
Anne - Ext.831 - Email: anne.b@accounted4.co.nz
Kate - Ext.825 - Email: kate.c@accounted4.co.nz
