The starting-out wage will be an option for employers and employees from 1 May 2013.
The starting-out wage is focussed on 16 and 17 year olds starting out in the workforce; 18 and 19 year olds who have been on a benefit for six months or more; and 16 to 19 year olds in training in a recognised industry training course involving at least 40 credits a year.
From 1 May 2013 the starting-out wage will replace the new entrants wage and training wage for under-20s.
The starting-out wage works alongside existing Government initiatives such as Work and Income’s employment programmes and wage subsidies.
Questions and answers
- Cabinet Paper Starting Out Wage Policy [pdf, 15 pages, 107kb]
- Regulatory Impact Statement - Starting Out Wage [pdf, 13 pages, 124kb]
Since the Regulatory Impact Statement was completed, the figures have been revised and updated using the latest population projections for youth from Statistics New Zealand (released July 2012). The model has now been expanded to include the 18 to 19 year old beneficiary population (estimates provided by the Ministry of Social Development).