Infozone: Business Essentials > Get the basics right > Pay

Pay

To ensure that you are paying people correctly you need to pay at least the relevant minimum wage and check that holidays and other leave are calculated properly. Keeping up-to-date, accurate records is an essential part of paying employees correctly.

What you must do

  • You must pay employees the amount that is set out in their employment agreement.  This must be at least the applicable minimum wage rate. See the section on minimum wage for the current wage rates.
    1. The adult minimum wage applies to all employees aged 16 and over who are not new entrants or trainees.
    2. The new entrants minimum wage applies to new employees who are 16 or 17 until they have completed 200 hours or three months of employment (whichever is shorter) with you or another employer since turning 16. However, you must pay them at least the adult minimum wage if you require them to supervise or train others.
    3. The training minimum wage applies to employees aged 16 and over who are doing recognised industry training involving at least 60 credits a year.
  • If you employ a person with a disability, then you may want to apply for an exemption permit from minimum wage rates.
  • Keep good records to avoid disputes and get your wage and leave calculations right.
  • If employees are doing the same job and have similar skills and responsibilities you’re not allowed to pay one employee less than the other because of their race, national or ethnic origin, sex or sexual orientation, marital or family status, age, religious belief or political opinion, or disability.
  • Tell new employees about the KiwiSaver scheme and make KiwiSaver contributions to Inland Revenue.
  • Pay for sick or bereavement leave days at the rate employees would usually be paid on that day. This is known as relevant daily pay. See Sick Leave or Bereavement Leave for more information.
  • You can only make pay deductions if your employee has agreed to them in writing or they are required by law (such as income tax or child support payments).
  • All holiday pay due to an employee should be paid to them at the time they leave the job. For more information see Calculating payment for annual holidays.
  • For more information on pay for public holidays see Paying Public Holidays Correctly.
  • For more information on pay for annual holidays see Calculating Annual Holiday Pay.

What you could do