Minimum Wage, ACC Levies and ESCT Changes 1 April 2025
Minimum Wage Increase
The adult minimum wage will be rising to $23.50 per hour from 1 April 2025. This is an increase of 35 cents per hour from the current hourly rate of $23.15.
The training and starting-out minimum wages will also both increase to $18.80 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $18.52 per hour
If your payroll is managed by CATAS, our team will automatically apply the increase for any of your staff members on the minimum wage and confirm this change with you.
ACC earners’ levy rates
The ACC levies deducted from employees’ wages through PAYE tax will increase from 1 April. The employee deduction rate will rise from 1.60% to 1.67%.
As a result, staff may notice a slight increase in their PAYE deductions, which may lead to a small reduction in their take-home pay.
ESCT Thresholds
Employer superannuation contribution tax (ESCT) is the tax taken off employer contributions to employees’ superannuation schemes, including KiwiSaver.
The income thresholds used to calculate ESCT rates are also changing on 1 April.
