A modest increase in New Zealand’s minimum wage is set to have broader implications beyond payroll adjustments. From April 1, 2026, the adult minimum wage will rise to $23.95 per hour, up from $23.50, while starting-out and training wages will increase to $19.16 per hour, maintaining the 80 percent link to the adult rate.
For employers relying on migrant labour, the change carries added significance. Beyond higher wage bills, it directly affects visa eligibility and compliance, particularly for roles paid at or near the minimum wage.
Any work visa application lodged on or after April 1, 2026 that includes a job offer must meet or exceed the new minimum wage. This requirement applies across visa categories, including the Accredited Employer Work Visa (AEWV). Employers with migrant workers currently earning minimum wage will need to ensure pay adjustments are made by April 1, 2026, employment agreements reflect the revised rates, and any new or pending visa applications meet the updated threshold. Applications that fall short of the required pay at the time of lodgement risk being declined, even if the role and employer otherwise meet eligibility criteria.
While the increase itself may seem small, the compliance impact can be significant. Immigration New Zealand assesses visa applications based on the pay rate in effect when the application is submitted, not when the job offer was originally made. For employers with multiple migrant workers, especially in lower-paid roles, the change may affect the timing of AEWV applications or renewals, workforce and salary budgeting, and job design where wages sit close to the minimum threshold.
Businesses planning recruitment or visa renewals around March 2026 should act proactively. Employers can mitigate risks by reviewing which migrant workers are paid at or near the minimum wage, confirming whether upcoming visa applications will fall after April 1, and updating employment agreements as needed.
This approach will help ensure compliance, avoid delays in visa processing, and smoothly manage workforce transitions following the minimum wage increase.
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