Minimum wage New Zealand: how it compares with Australia's award and award-free rates

Minimum wage New Zealand: a guide for Australian readers

If you are comparing pay across the Tasman, understanding the minimum wage New Zealand sets is essential. New Zealand's system is simpler than Australia's: a single adult minimum wage applies to most workers aged 16 and over, with lower rates for starting-out employees and trainees. In contrast, Australia uses a national minimum wage as a floor, but most employees are covered by modern awards or enterprise agreements that set higher rates.

New Zealand's minimum wage structure

From 1 April 2026, New Zealand's adult minimum wage is $23.95 per hour, according to . There are two lower rates:

• Starting-out wage: $19.16 per hour, for 16–19 year olds in certain situations (e.g., new to the workforce or on a benefit).
• Training wage: $19.16 per hour, for employees aged 20 or over doing at least 60 credits of industry training per year.

These rates apply before tax. Employers must also pay KiwiSaver or other superannuation contributions on top. Unlike Australia, New Zealand does not have industry or occupation awards; the minimum wage is the only statutory floor for most workers. However, employment agreements can set higher rates.

Australia's two-tier system: award coverage vs award-free

Australia's national minimum wage is $26.44 per hour ($1,004.90 per week for 38 ordinary hours) from 1 July 2026, as set by the Fair Work Commission. But this rate only applies to employees not covered by a modern award or registered agreement. The Fair Work Ombudsman explains that most employees are covered by an award, which typically sets higher minimum pay rates, including penalty rates and allowances.

For award-covered workers, the minimum wage is the rate in their award classification. The Fair Work Commission's annual wage review increased modern award minimum wages by 4.75% from 1 July 2026, but the lowest ongoing classification cannot fall below the national minimum of $26.44 per hour. An introductory rate for the first six months is capped at $25.74 per hour ($978.10 per week).

Award-free employees (those not covered by any award or agreement) receive the national minimum wage. Juniors under 21 receive a percentage of the adult rate, and apprentices and trainees have separate rates under the Miscellaneous Award.

Key differences for workers and employers

• Legal floor: New Zealand's adult minimum wage is $23.95/h; Australia's national minimum is $26.44/h. But many Australian workers earn more due to awards.
• Award coverage: Australia has hundreds of awards; New Zealand has none. In New Zealand, the minimum wage is the same for all industries unless an agreement says otherwise.
• Superannuation: Both countries require employer contributions on top of the minimum wage. In Australia, the super guarantee is 12% of ordinary time earnings. In New Zealand, KiwiSaver employer contributions are compulsory (minimum 3% of gross pay) unless the employee opts out.
• Junior rates: Australia has a structured junior wage scale for award-free employees (e.g., $9.73/h for under 16). New Zealand's starting-out wage applies to 16–19 year olds in specific circumstances, but there is no general junior rate for those 20+.

What about average earnings?

The Australian Bureau of Statistics reported that full-time adult ordinary-time earnings were $2,083.70 per week in May 2026. This is far above the national minimum, reflecting the effect of awards and negotiated salaries. New Zealand's average weekly earnings (not provided in the search) would also exceed the minimum wage. The legal minimum is a floor, not a typical wage.

When an award or agreement sets a higher rate

In Australia, if you are covered by a modern award or enterprise agreement, you must be paid at least the rate in that document. The national minimum wage only applies if you are award-free. Always check your award using the Fair Work Ombudsman's Pay and Conditions Tool. For more on how to determine your correct pay floor, see our Guides and How the figures work.

In New Zealand, your employment agreement may specify a higher rate than the minimum wage. If it does, that rate is your legal minimum. The government's minimum wage is a backstop.

Summary

While New Zealand's adult minimum wage ($23.95/h) is lower than Australia's national minimum ($26.44/h), the comparison is not straightforward. Australia's award system means many workers earn significantly more than the national minimum, while New Zealand's single rate applies broadly. Both countries require super on top, and both have lower rates for young or training workers. Understanding which system applies to you is the first step to ensuring you are paid correctly.