Is your business considering employing someone aged between 16
and 19 years old? If so, this information is relevant to you.
The Minimum Wage (Starting-out Wage) Amendment Bill has recently
received Parliamentary assent and makes changes to the Minimum Wage
Act 1983 (the "Act"). The changes mean that employers can pay 16 -
19 year olds in new jobs a "starting-out wage" of no less than 80
per cent of the minimum wage for young people.
As from 1 April 2013, the minimum wage is $13.75. At this rate,
the new 'Youth Wage' is $11 per hour.
Criteria for paying employees the Youth Wage
• The employee must be between the age of 16-19 years old;
• The employee must be a new employee; and
• An employer can pay the Youth Wage until the employee has been
employed for 6 months, at which point they will be required to pay
the employee minimum wage.
The Youth Wage can also apply to:
• 16 - 19 year olds who are in a recognised industry training
course, for example those who are undertaking apprenticeships;
• 18 and 19-year-olds who have been on a specified benefit for six
months or more.
These legal changes take effect from 1 May 2013.
For further information, check out the Department of Labour
website: http://www.dol.govt.nz/er/pay/minimumwage/ or
give us a call.