NZ Living Wage 2025: Rate, Minimum Wage & Salary Comparison

Living Wage 2025/26: $28.95 per hour · Adult Minimum Wage (Apr 2025): $23.50 per hour · Avg Hourly Wage (2025 est.): ~$37.50 · Living Wage Effective: 1 Sep 2025 · Increase from 2024: $1.15 (4.2%)

The table below puts the figures side by side.

What is the minimum living wage in NZ in 2025?

2025/26 rate and effective dates

The Living Wage Movement Aotearoa NZ sets the rate independently each year. For the 2025/26 year, the living wage is $28.95 per hour, effective from 1 September 2025 (Living Wage Aotearoa NZ – official announcement). That’s a $1.15 increase (4.2%) from the previous rate of $27.80.

The movement links the increase to the movement in average hourly earnings measured by Stats NZ’s Quarterly Employment Survey (Living Wage Aotearoa NZ – methodology note). Accredited employers must pay at least this rate to all direct and contracted employees from the effective date.

How is the living wage calculated?

The Family Centre Social Policy Research Unit calculates the living wage based on the actual costs of living for a worker and their family — housing, food, transport, childcare, and modest savings. It is not a statutory minimum; employers choose to become accredited (Living Wage Aotearoa NZ – calculation explanation).

The implication: understanding this benchmark helps workers gauge whether their pay covers actual living expenses.

What is the difference between minimum wage and living wage in NZ?

Current minimum wage rates

New Zealand’s adult minimum wage rose to $23.50 per hour on 1 April 2025, following the government’s annual review (MBIE Minimum Wage Review 2025 – official document). Lower rates apply for starting-out and training workers: $18.80 per hour (2025).

Employers are legally bound to pay at least the minimum wage. The living wage, at $28.95, is $5.45 higher per hour — a gap of nearly 19%.

Living wage vs minimum wage – key differences

The minimum wage is a legal floor set by government. The living wage is a voluntary social benchmark set by an independent trust. Accreditation requires employers to pay the living wage to all workers, including contractors.

According to People and Culture – NZ HR insights, about 400 employers were accredited as of early 2025, covering roughly 30,000 workers. That’s a tiny fraction of the 2.3 million employed New Zealanders.

What this means: the voluntary nature of the living wage limits its reach unless more employers adopt accreditation.

Is $27 an hour good pay in NZ?

$27 vs living wage and minimum wage

At $27 per hour, a worker earns $3.50 above the minimum wage but $1.95 below the 2025 living wage. That puts $27 in a grey zone: better than the legal floor but not enough to meet the cost-of-living benchmark.

For a 40-hour week, $27 yields $1,080 gross — about $56,160 a year. That’s below the median salary of $69,836 (MoneyHub – 2025 median salary data).

Context: average hourly wage in 2025

The average hourly wage in New Zealand in 2025 is estimated at around $37.50 (New Zealand Shores – expat employment guide). That makes $27 about 72% of the average. While $27 may feel decent in low-cost regions, in Auckland or Wellington it likely falls short of comfortable living.

The pattern: $27 leaves workers in high-cost areas vulnerable to housing and childcare expenses.

Is $30 an hour good in NZ?

$30 vs living wage

At $30 per hour, you clear the living wage by $1.05. That’s a meaningful cushion. A 40-hour week at $30 grosses $1,200 — about $62,400 a year. That’s above the median hourly rate of $34.25? Actually no, $30 is below $34.25. So while it beats the living wage, it’s still below the median market rate.

The gap between $30 and the median suggests that many workers in professional or skilled trades earn more. But for entry-level roles, $30 is strong.

Salary equivalence: $30/hour annual income

$30/hour × 40 hours × 52 weeks = $62,400. That lands just under the median by about $7,400. In a high-cost city like Wellington, that may require careful budgeting; in a smaller centre, it can be comfortable.

The catch: even at $30, families in expensive cities may still struggle with rent and childcare.

Is $70,000 a good salary in New Zealand?

$70,000 annual vs average earnings

A $70,000 salary works out to about $33.65 per hour (40-hour week). That’s above the living wage ($28.95) and the median hourly rate ($34.25). Compared to the average salary of $81,484 (MoneyHub – 2025 average salary), $70k is about 86% of average. It’s a comfortable middle-income salary.

What salary is considered comfortable?

Comfort varies wildly by location. In Auckland, a single person needs roughly $70k-$80k to live without stress; in Christchurch, $60k may suffice (New Zealand Shores – cost of living context). For a family of four, the Council of Trade Unions estimates a living wage income of $95k is needed for basic adequacy.

The implication: geographic cost differences mean that one salary number does not fit all.

What is 40 hours minimum wage in NZ?

Calculating weekly and annual minimum wage

At the adult minimum wage of $23.50 per hour, a 40-hour week brings in $940 per week (gross). That’s $48,880 a year (MBIE – 2025 minimum wage rates).

If the worker is on the starting-out rate of $18.80, the same 40-hour week yields $752 per week ($39,104 a year).

Minimum wage for different age groups

The starting-out rate applies to 16-19 year olds who haven’t done 6 months continuous service, and to 20+ year olds in their first 3 months of a new role. The training rate covers employees doing recognised industry training. Both are set at 80% of the adult minimum (People and Culture – NZ employment law).

What this means: for workers on the minimum, every dollar counts when covering basic needs.