Minimum wage from April 1st

From April 1^st 2023, the minimum wage will increase by 7% to $22.70. The Starting-Out and Training minimum wage rates will also increase so that they are 80% of the adult minimum wage.

This wage increase may impact your business, even if you don’t employ any of the 175,000 Kiwis who earn minimum wage. Wages rise steadily over time, and employees who missed out on a pay rise this year will probably expect one next year, especially if your business has been doing well.

As well as the rising cost of labour, inflation will also likely increase your running costs, and the price of materials. This is a good time to consider whether it’s time to put your prices up. Ideally, businesses should increase costs by a small amount each year, rather than a big jump every five years. Small increases help prevent price shocks for customers and keep your business in line with the rest of the market.

You may also need to think about whether you can cut back areas of spending. Most businesses are already running lean after COVID, and due to inflation, but we can help you identify areas where you might be able to trim the fat.

Give us a call or drop us an email – we’re here to help.