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

Are New Zealand’s Interest Rates Set to Rise?

New Zealand’s economy is running hot at the moment. This is due to New Zealander's spending more money at home and still having a strong export sector, especially the dairy industry. Growth is strong, but the pandemic is still with us and still impacting financial markets. The Government and Reserve...
5 min read

How much should you pay yourself?

As a business owner, how much should you pay yourself? It depends on how much your business can afford, market pay rates, and whether reinvestment could pay dividends. Being the boss means you get to make all the big decisions about your business – including how much to pay yourself...
5 min read

Lockdown Leave, Pay Cuts, Reduced Hours: What’s Allowed?

There are many questions during Level 4 & 3 lockdown about the responsibilities for employers. Luckily, the Ministry for Business Innovation and Employment (MBIE) have set out all the required information. Two of the most commonly asked questions are: 1. Can I make employees take annual leave during lockdown? The...

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.