Minimum Wage Has Increased – Here’s What It Means for Your Business
From 1 April 2026, the adult minimum wage in New Zealand has increased to $23.95 per hour, up from $23.50.
Training and starting-out wages have also increased to $19.16 per hour, remaining at 80% of the adult rate.
While the increase may seem small at first glance, the impact on your business can be more significant than expected.
What does the increase actually cost?
For a full-time employee working 40 hours per week, this change means:
An extra $18 per week
Or $936 per year (before tax)
If you employ multiple staff on minimum wage, your total payroll costs can rise quickly – putting pressure on your margins and cashflow.
How to manage the impact of rising wage costs
The key is to be proactive. Here are five practical ways to help manage the increase:
1. Make use of training and starting-out rates
If you employ younger workers (aged 16–19) or those in training, you may be able to use the lower rate of $19.16 per hour.
This can help manage costs while also creating opportunities for new and developing staff.
2. Review your staff rostering
Are your staffing levels aligned with demand?
Having too many staff on during quiet periods can quickly drive up costs. Reviewing your historical sales and workflow can help you roster smarter and reduce unnecessary wage spend.
3. Consider small price increases
To offset the additional cost, you may need to review your pricing.
Small, well-communicated increases can help protect your margins without pushing customers away. The key is to keep adjustments fair and sustainable.
4. Invest in tools, systems and automation
Technology can help you do more with less.
Automating admin tasks, bookings, or ordering systems can reduce the number of hours required to run your business, improving efficiency and lowering overall labour costs.
5. Focus on retaining your team
Hiring new staff is expensive and time-consuming.
By retaining experienced employees, you maintain productivity and avoid recruitment and training costs. In many cases, keeping good staff is more cost-effective than replacing them.
Stay ahead of rising costs
Wage increases are just one of many cost pressures businesses are facing right now.
Having a clear plan in place can make all the difference to your profitability and cashflow.
At Cross Group, we work with you to:
Review your wage and staffing costs
Identify areas for improvement
Build a plan that keeps your business running efficiently
Don’t get caught out by rising costs.
Get in touch with our team today and let’s make sure your business stays on track.y.