The starting out and training minimum wage in NZ is $19.16 an hour, and applies to some workers aged 16 to 19 in their first six months, or those doing recognised industry training. Most other employees are entitled to the adult minimum wage of $23.95 an hour.
Source: Types of minimum wage
What is the starting out wage and who gets it in NZ?
It is a lower legal minimum rate, $19.16 an hour, that can apply to 16 to 19 year olds in their first six months of continuous employment with a new employer, or workers of any age doing a recognised industry training course involving at least 60 credits a year. It does not apply automatically just because someone is young or new to a job.
Source: Minimum wage
Does every young worker get paid less?
No. A 17 year old who has worked for the same employer for more than six months is entitled to the adult minimum wage of $23.95 an hour, not the starting out rate. The starting out wage also stops applying once someone turns 20, regardless of how long they've been in the role.
Source: Minimum wage
Can an employer choose to pay the starting out wage anyway?
No, it only applies where the legal conditions are met, and even then the employer can choose to pay more, including the full adult rate. If you think you're being paid the starting out rate without meeting the criteria, that is worth raising directly with your employer or checking with Employment New Zealand.
What should you check before you accept a wage?
Before signing anything, confirm which rate applies to your situation and get it in writing in your employment agreement. A few things worth checking on any first job offer:
- Your age and how long you've worked for this specific employer
- Whether the role involves recognised industry training with credits attached
- What rate is written in your employment agreement, not just what you were told verbally
- Whether the rate increases after six months or after training finishes
- How your pay compares to the adult minimum wage of $23.95 an hour
Key takeaways
- The starting out wage is $19.16 an hour, not a rate for all young workers
- It applies to specific situations: first six months for 16 to 19 year olds, or recognised training
- The adult minimum wage of $23.95 an hour applies once those conditions no longer apply
- Get your actual rate in writing in your employment agreement
- Employers can choose to pay more than the minimum at any time
Frequently asked questions
Does the starting out wage apply to all teenagers?
No, it only applies to 16 and 17 to 19 year olds who meet specific conditions, mainly being in their first six months with a new employer. A teenager who has worked somewhere longer than that is entitled to the adult rate.
What happens after six months on the starting out wage?
Once the six month period ends, the employer should move you to at least the adult minimum wage of $23.95 an hour, assuming the training exception doesn't apply instead. Check your payslip and employment agreement to confirm the change happens.
Does the starting out wage apply to adult career changers doing training?
It can, if the training involves a recognised industry course with at least 60 credits a year, regardless of age. This is different from the youth based six month rule and worth clarifying with your employer directly.
Where can I check the current minimum wage rates?
Employment New Zealand publishes the current rates and full criteria for each wage type. Rates can change, so always check the official page rather than relying on what you were told verbally.
If you're negotiating pay or just want to see what a role should realistically offer, run the numbers through the Salary Calculator before you accept anything.