Minimum Wage – Issues for farming businesses in New Zealand

Written by
MBS Advisors
Published on
April 5, 2022

All New Zealand employers should understand their obligations under the Minimum Wage Act. Farming businesses can face questions that may not arise for other employers.

From 1 April 2022 the minimum wage rates increase. The rates for adult workers are:

  • Hourly: $21.20 ($16.96 for Starting-out workers/Trainees)
  • Daily (based on an 8-hour day): $169.60 ($135.68 for Starting-out workers/Trainees)
  • Weekly (based on a 40-hour week): $848 ($678.40 for Starting-out workers/Trainees)
  • Fortnightly (based on an 80-hour fortnight): $1,696 ($1,356.80 for Starting-out workers/Trainees)

It is relatively straightforward to ensure your business is paying your workers at least minimum wage when your employees’ hours of work are regular and fit neatly within the ranges of an 8-hour day, a 40-hour week or an 80-hour fortnight.

It can be more complicated if your business is seasonal, typical for many farming businesses, with peak seasons requiring longer hours than usual, or irregular hours. It is important to have systems to ensure your business is fully compliant with minimum wage requirements. Even when you pay above minimum wage, you need to check.

In the old days some employers would average out wages over busy and quiet times. Under current law, the maximum period wages can be averaged over is a fortnight (and there are conditions on that).

If you provide accommodation or benefits such as food or firewood for your employees, you can agree with them to deduct the cost of accommodation from their wages. The Minimum Wage Act allows you to count some of these benefits as ‘wages’, but not all.

For more detail, download the guide.

Our Payroll Manager Jan is always happy to help if you have any questions, contact us today

Share this post
Blog

Explore our latest articles

Enjoy our latest news and blog posts

5 min read

Government COVID-19 Wage & Leave Subsidies

We understand that there is a lot of ambiguity when it comes to the Government providing significant COVID-19 wage and leave subsidies to employers and self-employed persons. Many of you will have questions about how we treat these for Income Tax, GST, and Payroll purposes. Below is a brief...
5 min read

Lead By Example – Be a Mental Health Champion

Did you know the main reason people take time off work is due to poor mental health? This means, it’s in your best interest to promote positive mental health at work. Investing in building and maintaining good mental wellbeing at work boosts productivity, sales, creativity, and customer satisfaction. Here are...
5 min read

2020 Bloodstock Yearling Sales

Ellerslie Races The Auckland Racing Club (ARC) meeting on Saturday 25 January 2020 at Ellerslie Racecourse signals the start of a busy week for the Thoroughbred Racing Industry in New Zealand. This is then followed by the week long Karaka Yearling sales. The ARC hosts a 6 race meeting, headlined...

Stay updated and sign up to our newsletter

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.